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into_the_wild

Dreams are what you wake up from.

14 years of Livejournalling, and hopefully, more to come.


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Crazy
into_the_wild

:: 10 Best Places to Invest ::



:: 10 Best Places to Invest ::

If pressed, could you tell me the country that offered the best stock returns in 2006? What about any members of the top 10?

It's harder than you probably think, because they're not the countries you might expect.

You call that a bull market?
Investors rejoiced as the Dow crossed 12,500 in 2006, yet the Dow gained just 16% last year. While that's an impressive number on the surface, it's abysmal when compared with the rest of the world's equities.

Without further ado, the top 10 performers:



This list is incredible to me. Croatia? Botswana? Peru?

We can learn a few things from this list. First, if you're an American investor, it's absolutely crucial to be invested abroad. The potential returns to be had there are too good to pass up. Second, the best returns often come from obscure places -- not from the countries we read about every day in the papers. And finally, there is some risk involved in investing internationally. For example, with President Hugo Chavez leading a nationalization push right now, Venezuela isn't exactly a friend to foreign investors.

Buy what others aren't
The main lesson here is old hat: To get the best returns, you need to be willing (and able) to look where other investors aren't. That's why the 10 best domestic stocks of the past 10 years were all small caps.

See, huge numbers of investors and analysts watch large companies and popular markets. Goldman Sachs (NYSE: GS), UnitedHealth (NYSE: UNH), and ConocoPhillips (NYSE: COP), for example, get coverage from 20 or more analysts. Those three popular stocks also have more than 1,800 ratings in our Motley Fool CAPS community intelligence database.

In other words, they're probably pretty efficiently priced.

You'll get the best returns, however, by finding market inefficiencies. And while another 1,600 investors are covering Corning (NYSE: GLW) and Sirius Satellite Radio (Nasdaq: SIRI) in CAPS, Peru's Compania de Minas Buenaventura has just 310 ratings.

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poetic irony for into_the_wild (the book) to be talking about money and investments, lol.

i am not a book.
i am wildy!

like you are neither a rune or a circle.
you're just _______.


I never knew you were such an investment eagle! Interesting. I've invested quite a lot this past year, but all in local stocks.

About the list - it's not hard for me to believe that these emerging markets would have such huge growth; after ll, they are almost all starting at very low levels, there's nowhere to go but up. These numbers are in percentages, which is of course relative to the previous year's numbers.

I think there are some pretty big risks for some of these markets that a small-time investor like me wouldn't be able to take. And I'm a long-term investor, not a trader, so I buy stocks to keep. But China at least is tempting me...


talking abt investments, i do believe it's a ripe time to start selling china stocks by next yr. my reason? most people believe that china's growth is sustained by the olympic '08 build up, which is not entirely false but not entirely true either. most speculators are market followers so they base their instincts on certain marked event and i speculate that they will speculate that it's high time to sell after olympics 2008. when these speculators dump their stock, people wld follow.. prices wld drop and more people will follow. china stock prices will destablise downwards for awhile, and this wld be the best time to buy back in again. china's real growth will bring the stocks back up and when speculators see that prices go up again, they will buy back in and cause price to increase faster.. so u eventually gain cause u buy at a muuch lower price..

well, this is just my investment theory.. personally, i'd just invest in australia currency now... :-p

personally i feel it doesnt matter whether an index is up or down to get returns. have u watched 'Casino Royale'? before the terrorist attacks, insiders bought billions of Put Options in hope that they can make billions when the underlying index crashed upon the terrorist attack!

The critical success factors in investing :
1. Timing (30%)
2. Cash flow (50%)
3. Luck (10%)
4. Guts (10%)

Of course if you also have insider news and can spot arbitrage opportunties, that would be a perfect scenario. also not forgeting your precious 'midas' touch! :]

From wiki:

Botswana: Since independence, Botswana has had one of the fastest growth rates in per capita income in the world.[1] Botswana has transformed itself from one of the poorest countries in the world to a middle-income country with a per capita GDP of $11,200 in 2006.[2] Economic growth averaged over 9% per year from 1966 to 1999. The government has maintained a sound fiscal policy, despite consecutive budget deficits in 2002 and 2003, and a negligible level of foreign debt. It earned the highest sovereign credit rating in Africa and has stockpiled foreign exchange reserves (over $7 billion in 2005/2006) amounting to almost two and a half years of current imports. Botswana's impressive economic record has been built on the foundation of wisely using revenue generated from diamond mining to fuel economic development through prudent fiscal policies and a cautious foreign policy. Debswana, the only diamond mining company operating in Botswana, is 50% owned by the government and generates about half of all government revenues. In 2007, significant quantities of Uranium were discovered, and mining is projected to begin by 2010. Several international mining corporations have prospected in Botswana for diamonds, gold, uranium, copper, and even oil, many coming back with positive results.

Croatia: The Croatian economy has a stable functioning market economy according to EU reports and is the most advanced economy of South-Eastern Europe (Greece excluded). The Croatian preliminary 2008 GDP data states that the Croatian GDP is USD 68,208 billion, or just over USD 17,100 per capita (real income), putting Croatia ahead of the EU member-states Romania, Bulgaria, Poland and Lithuania. "Grey" economy of about USD 2 billion is still not included in GDP calculations like in other EU countries, something which would certainly increase it.

The economy is service-based, with the service sector accounting for 67% of the total GDP. The industrial sector is dominated by shipbuilding, followed by food processing and chemical industry. Industry makes up 27% of Croatia’s total economic output. Agriculture makes up 6%. Tourism is a notable source of income during the summer. With over 10,0 million foreign tourists in 2006 generating a revenue of EUR 7 billion, Croatia is ranked as the 18th most popular tourist destination in the world. In 2006 Croatia exported goods in value of USD 10.4 billion (FOB) (19.7 billion including service exports).

Plus, they won the Miss Universe title on their first year of taking part in 1998!

Meanwhile Singapore has been sending a girl every year for the past 51 years and... errm...

I just pulled out all of my local unit trusts in August and dumped them into an emerging markets fund and an asia pacific fund. So far making money! *woot woot* Thank you VIETNAM!

I always knew that Vietnam was enjoying good growth. In fact, I would rank it above China for the years to come. The last 3 China IPOs haven't really been spectacular.

The trick here is to look at the energy stocks from China. After all, they have a huge store of natural gas, oil, etc.

where is the data from?
are they adjusted for exchange rate fluctuations?

but yes emerging markets are the place to be at the moment. and the less dependent on the US market they are the better.

WAH...

i really didn't know u had this side of you!!! so impressed!

i have to agree that usually the investments with good returns are from places where they are still developing... cos there is still plenty of room to expand...

next time if i wana invest, i come look for you ok..:P

Wah ! didnt know there are so many investment pros.here

Data and info is good. Spotting an opportunity to invest from the mounds of mumbo jumbo is crux.

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