Here's a brief, well written market review that I receive for free each month (for the month of October): Monthly Market Review - October 2009
I don't recall how I came across this review, but aside from being a great resource, it's tied to some really well done marketing for Agile Investments, which is an ETF Portfolio Management organization. These groups have been popping up relatively frequently, and are worth investigating if your looking for someone to manage a set of ETFs to support an index investment approach.
Showing posts with label Emerging Markets. Show all posts
Showing posts with label Emerging Markets. Show all posts
Friday, October 9, 2009
Wednesday, January 14, 2009
2009 Index of Economic Freedom
Yesterday's WSJ featured an Op Ed presenting this year's Heritage Foundation/WSJ Index of Economic Freedom, which can be accessed here: http://www.heritage.org/index/
This index is intriguing, and is a great tool that is useful in a number of ways. If you haven't seen it, take a look.
One contention that Terry Miller (one of the co-editors) makes is that there is a strong "positive correlation between economic freedom and national income". As proof, he points out that "...the freest countries enjoy per capital incomes over 10 times higher than those in countries ranked as "repressed"."
So what do you think?
Some tidbits worth exploring:
This index is intriguing, and is a great tool that is useful in a number of ways. If you haven't seen it, take a look.
One contention that Terry Miller (one of the co-editors) makes is that there is a strong "positive correlation between economic freedom and national income". As proof, he points out that "...the freest countries enjoy per capital incomes over 10 times higher than those in countries ranked as "repressed"."
So what do you think?
Some tidbits worth exploring:
- The methodology: http://www.heritage.org/index/pdf/Index09_Methodology.pdf
- The executive summary: http://www.heritage.org/index/pdf/Index09_ExecSum.pdf
Sunday, February 17, 2008
IBM's Approach to Emerging Markets...
As an IBM shareholder, I have gained a lot of respect for Sam Palmisano, who is reaching his sixth anniversary as CEO. As part of a recent "Boss Talk" in WSJ (http://online.wsj.com/article/SB120294821421766713-email.html), he talked about IBM's global approach, and I wanted to highlight a couple of his comments here.
They outline an approach that is cohesive, makes a lot of sense, and illustrates the long-term outlook that companies need to take when they enter a new market. Aside from that, these are the kind of fundamental insights that make a man like Warren Buffett very wealthy --- aside from the corporate strategy, these comments can help you, as an individual investor, develop a framework for investment decisions in emerging markets....
Now, to Sam.
IDENTIFYING THE NEED:
Today, "developing countries" account for 21% of IBM sales --- they currently target 50 countries that "are small today but will be big in the future". Palmisano states that the key to identification of growth markets is --- GDP growth and (more importantly) the "evolution of the consumer class".
IBM's realization is that as citizens around the globe become consumers, they shift into needs and wants that mimic our own here in the states. But beyond that, these new consumers skip the PC --- "the cellphone becomes actually the PC for entertainment, for microloans, for all those other things." What does this mean for IBM? INFRASTRUCTURE - a critical need as economies evolve...
THINKING LONG-TERM:
IBM knows the part of an emerging market's lifecycle that is attractive to them and they now move to a long-term, win-win executional approach. This is not something they do lightly, nor do they let short-term economics dictate their investment decisions.
Sam outlines the following approaches:
- "Enter early" - go when THEY are looking for partners, don't wait until the market actually justifies involvement - then it's too late
- Help the countries develop the talent --- IBM has critical talent needs, as does the country. By helping each country address the talent gap, both groups win - and learn to work and trust one another along the way.
- Development of "learning accounts" - to assist displaced workers within IBM develop their own valuable skill sets
So today, as a true multi-national company, IBM makes synergistic decisions within the markets that they target. In addition to that, they provide insight on the macro-economic factors that help them make those decisions. Pretty cool.
These comments are valuable as you build a framework for looking at emerging markets --- from an individual investor standpoint, and as a company considering doing business there...
They outline an approach that is cohesive, makes a lot of sense, and illustrates the long-term outlook that companies need to take when they enter a new market. Aside from that, these are the kind of fundamental insights that make a man like Warren Buffett very wealthy --- aside from the corporate strategy, these comments can help you, as an individual investor, develop a framework for investment decisions in emerging markets....
Now, to Sam.
IDENTIFYING THE NEED:
Today, "developing countries" account for 21% of IBM sales --- they currently target 50 countries that "are small today but will be big in the future". Palmisano states that the key to identification of growth markets is --- GDP growth and (more importantly) the "evolution of the consumer class".
IBM's realization is that as citizens around the globe become consumers, they shift into needs and wants that mimic our own here in the states. But beyond that, these new consumers skip the PC --- "the cellphone becomes actually the PC for entertainment, for microloans, for all those other things." What does this mean for IBM? INFRASTRUCTURE - a critical need as economies evolve...
THINKING LONG-TERM:
IBM knows the part of an emerging market's lifecycle that is attractive to them and they now move to a long-term, win-win executional approach. This is not something they do lightly, nor do they let short-term economics dictate their investment decisions.
Sam outlines the following approaches:
- "Enter early" - go when THEY are looking for partners, don't wait until the market actually justifies involvement - then it's too late
- Help the countries develop the talent --- IBM has critical talent needs, as does the country. By helping each country address the talent gap, both groups win - and learn to work and trust one another along the way.
- Development of "learning accounts" - to assist displaced workers within IBM develop their own valuable skill sets
So today, as a true multi-national company, IBM makes synergistic decisions within the markets that they target. In addition to that, they provide insight on the macro-economic factors that help them make those decisions. Pretty cool.
These comments are valuable as you build a framework for looking at emerging markets --- from an individual investor standpoint, and as a company considering doing business there...
Subscribe to:
Posts (Atom)