Master Investor 2012
An investment show run by t1ps for its members. It's a mixture of small companies doing shareholder relations and a main hall for guest speakers. The speaker lineup has been fairly static over the past few years but as they are an entertaining group I'm not complaining.
Some of them are Thatcherite free marketeers, but don't let that put you off, their value lies in what they have seen, won, lost and what they escaped from. This is the equivalent of adventurers swapping tall tales after a dungeon crawl.
"When some wild-eyed, eight-foot-tall maniac grabs your neck, taps the back of your head up against the bar room wall, looks you crooked in the eye, and asks you if you paid your dues; you just stare that big sucker right back in the eye, and you remember what ol' Jack Burton always says at a time like that: "Have you paid your dues, Jack? Yes sir, the cheque is in the mail." Jack Burton, Big Trouble in Little China.
What struck me was how many of the solutions or ideas they offered were for people with free capital. Fine if you are cash rich, limited otherwise. If you are worried about the Eurozone or endemic corruption in the BRIC countries you buy physical gold or convert some of your cash into US dollars, expecting other currencies to drop in value. Not much use for people who want to save a little bit every month. Their choice is to hold blue chip stocks like Aviva, Diageo, Unilever. Large multinationals who reliably produce dividends from their worldwide operations. A few years ago there would have been two other names on that list, LloydsTSB and BP. Both of whom have been subject to crisis and no dividend payouts. The cash rich can afford to risk capital where the citizen shareholder does not.
Fraud and broken dreams were also a key topic. If you look at the history of mining there are many stories of unsuspecting punters lured into promises of gold, diamonds and rare earths; A lot of these stories reference Vancouver. Most of them end badly. The share price races up and down on rumours of finds, discoveries and failures. The percentage gains are astounding if you bought at the bottom, buy now! This could be your last chance.
Hong Kong is one of the most developed and sophisticated Capital Markets in the world. Why then do Chinese companies bypass HK and list in London and New York? Is it because they want the international exposure and prestige of a foreign listing? Is it because they think that western investors are more savvy? Two of the speakers are accountants and auditors. By reviewing balance sheets and corporate cash flow they may take a view that a company is overvalued or fraudulent. There are a number of Chinese companies on London's AIM market that appear unusual. The story is that Chinese investors are sold an idea, invest their money on shares bought in a distant land and wave goodbye to their money. It's having such a good time on holiday that it doesn't want to return to the Middle Kingdom. North America is also a popular venue, Sino Forest, a notable example. We find out about these companies through short sellers, people who are brave enough to point out the problems and back their opinion with money.
Biopharma is the new Gold Rush, lots of companies promising much but who will deliver? They share a lot in common with mining stocks, prices shooting up and down as results of trials are published. There is a lot of money to be made, and sadly another incentive for scientific fraud. Some stable companies will emerge but for now this investment is not recommended for widows and orphans.
Some of them are Thatcherite free marketeers, but don't let that put you off, their value lies in what they have seen, won, lost and what they escaped from. This is the equivalent of adventurers swapping tall tales after a dungeon crawl.
"When some wild-eyed, eight-foot-tall maniac grabs your neck, taps the back of your head up against the bar room wall, looks you crooked in the eye, and asks you if you paid your dues; you just stare that big sucker right back in the eye, and you remember what ol' Jack Burton always says at a time like that: "Have you paid your dues, Jack? Yes sir, the cheque is in the mail." Jack Burton, Big Trouble in Little China.
What struck me was how many of the solutions or ideas they offered were for people with free capital. Fine if you are cash rich, limited otherwise. If you are worried about the Eurozone or endemic corruption in the BRIC countries you buy physical gold or convert some of your cash into US dollars, expecting other currencies to drop in value. Not much use for people who want to save a little bit every month. Their choice is to hold blue chip stocks like Aviva, Diageo, Unilever. Large multinationals who reliably produce dividends from their worldwide operations. A few years ago there would have been two other names on that list, LloydsTSB and BP. Both of whom have been subject to crisis and no dividend payouts. The cash rich can afford to risk capital where the citizen shareholder does not.
Fraud and broken dreams were also a key topic. If you look at the history of mining there are many stories of unsuspecting punters lured into promises of gold, diamonds and rare earths; A lot of these stories reference Vancouver. Most of them end badly. The share price races up and down on rumours of finds, discoveries and failures. The percentage gains are astounding if you bought at the bottom, buy now! This could be your last chance.
Hong Kong is one of the most developed and sophisticated Capital Markets in the world. Why then do Chinese companies bypass HK and list in London and New York? Is it because they want the international exposure and prestige of a foreign listing? Is it because they think that western investors are more savvy? Two of the speakers are accountants and auditors. By reviewing balance sheets and corporate cash flow they may take a view that a company is overvalued or fraudulent. There are a number of Chinese companies on London's AIM market that appear unusual. The story is that Chinese investors are sold an idea, invest their money on shares bought in a distant land and wave goodbye to their money. It's having such a good time on holiday that it doesn't want to return to the Middle Kingdom. North America is also a popular venue, Sino Forest, a notable example. We find out about these companies through short sellers, people who are brave enough to point out the problems and back their opinion with money.
Biopharma is the new Gold Rush, lots of companies promising much but who will deliver? They share a lot in common with mining stocks, prices shooting up and down as results of trials are published. There is a lot of money to be made, and sadly another incentive for scientific fraud. Some stable companies will emerge but for now this investment is not recommended for widows and orphans.