Thursday, February 11, 2010

Global Strategy

Notes from Tom Wu, in Cebu, Philippines
Mark Mobius with Tom Wu
Our global emerging markets strategy includes investments in over 20 emerging economies.  As bottom-up investors who look at companies on a stock-by-stock basis, .. where there are opportunities and bargains in many of these markets, which we believe, are trading at attractive price-to-earnings and price-to-book ratios.

It is important to note that while investing in emerging markets may offer higher returns, aligned with these returns are more risks such as greater volatility, currency fluctuations, less liquidity and differing legal standards. 

In view of those risks, our team’s investment approach is to adhere to the Templeton principles of value investing and fundamental research, seeking the best long-term investment bargains in emerging markets.

In general, we look to buy and hold an investment for an average of 5 years and we do not let short term market noise distract us, in fact those periods of extreme market volatility often provide the best buying opportunities.  In addition, we diversify across markets, industries, and companies to minimize risks in our portfolios.

It is also our experience gleaned from years of investing in those markets that has taught us how to evaluate every situation for potential short-term and long-term impact.  It is important to understand whether an issue is just a short-term blip or has the potential for longer-term repercussions.

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