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catoismymotor (71.79)

Okay Schonberger, I don't like it when Snoopy laughs at me.

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9

November 24, 2009 – Comments (6) | RELATED TICKERS: IBN , PBR , SAYCY.DL

Recently I sold almost all of my Chinese holdings. At this point I believe it is a good idea to take some of those chips to a new table. But which one? Last week I had convinced myself that Brazil was the way to go. And just as I had settled on that idea pieces were published on The Motley Fool that have me second guessing my decided path. As Charlie Brown would say, “AAUGH!!!!” I almost feel as though Lucy has pulled the football out of the way just as I was about to kick it. Jennifer Schonberger, you are my Lucy! Did you really have to conduct that interesting interview with Ms. Lu? Did you really have print it? Did I really have to re-read it before going to sleep last night? Good grief! 

Don’t worry, Jennifer, I’m aware no malice or mischief was meant. You’ve done me, and other Fools a favor.  By helping to open our eyes to the opportunities in India through your interview with Ms. Lu you have provided us with a great service. A side effect of this broadening of our investing horizons has been to stick me with homework. I have much to learn about the nuances of Indian business culture and the society at large. I have already signed up for Tim Hanson’s blog that will cover his upcoming visit. Hopefully he will be able to provide some insight that will assist with my education.

Thank you for taking the football away,

Cato

6 Comments – Post Your Own

#1) On November 24, 2009 at 11:20 AM, TMFMmbop (96.61) wrote:

Those were good interviews. Glad you're signed up for the trip.

Tim

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#2) On November 24, 2009 at 11:26 AM, dudemonkey (57.41) wrote:

No matter what your investment strategy, you can find an article on fool.com explaining that you're right.  And another one showing that you're wrong.

Stick with what you know and tune out the rest, and that includes some of the TMF authors. 

For my money, Brazil is the place to be but not at today's prices.

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#3) On November 24, 2009 at 11:52 AM, Teacherman1 (48.58) wrote:

Cato- If you want to get a toehold in Brazil, you might want to consider NM. They have a subsidary there that manages port facilities and inland waterway transportation that will benefit from what is going on in Brazil.

There is a likelyhood that China will be importing more of their raw materials from there in the future. 

NM is a very well run company and pays a decent dividend.

If you decide to go in, you might want to wait until one of the big psychological sell offs that will be coming sooner or later (I mean the market as a whole), which will give you a better entry price.

NM looks like it is taking on a lot of debt, but you need to go to their website and look at just how they are doing the financing to get a better feel for what they are doing. They are smart cookies and are fairly shareholder friendly. They don't do anything based on impulse or without thinking it out very carefully.

I understand how you feel about Chinese stocks. I recently bought my first one (APWR) and am still having second thoughts about it.There is a good U.S. connection for it, as well as a GE connection. They are supplying the turbines for a $1.5B wind project in Texas and say they are going to build them in the U.S.. This is why I bought them, also the fact they are up about 183% for the year, but now I am thinking about how much of that was due to lower production costs in China. Of course, the U.S. connection gives them the opportunity to benefit from both "Green" and "Job" spending here.

Might decide to treat it as a shorter term play than most of my investments. 

JMO and worth exactly what I am charging for it. 

Have a nice day. 

 

 

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#4) On November 24, 2009 at 11:59 AM, catoismymotor (71.79) wrote:

Teacherman1, thanks for the lead. I'll make it a point to learn about NM.

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#5) On November 24, 2009 at 12:19 PM, TMFJScho (< 20) wrote:

Hi Cato, Jennifer here. Thanks for your post. Sorry to steal your football! I think BOTH India and China are great long term plays. Brazil/Latin America is a good place to invest as well. So you could always invest in all three to gain broader diversification within the BRIC countries. Just remember to diversify so that you're well balanced, as investing in emerging markets generally comes with a higher beta -- but I'm sure you already know that:)

PS: The WSJ did an interview with Rupert Murdoch in which they asked him of all the places in the world where would you invest today. He said India. In fact he favors India over China. But I still like both: http://online.wsj.com/article/SB20001424052748704538404574541860680545406.html#mod=todays_us_

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#6) On November 24, 2009 at 2:10 PM, catoismymotor (71.79) wrote:

Jennifer,

 

Thank you for replying to my little blog. As for Beta…Yeah, Chinese small caps gave me a crash course in volatility. Personal experience was my teacher on that one. 

 

I appreciate your enthusiasm and willingness to help your fellow Fools understand India and other markets by interviewing experts such as Ms. Lu. It helped to open my eyes to opportunities. 

 

I like China, Brazil and India. But Russia is a different story. One country I have decided to add to my portfolio is Canada. The economy is strong and they have abundant natural resources.  When it comes to adding Brazil to the mix it would be an easier fit. There are a number of different avenues I can choose from that will not over expose me to my current sectors of choice. At this time the stocks from India that interest me are the banks. Through them I could access the money flowing into the infrastructure developers that I am most interested in. But my mind is far from set on taking action. I am devoted to further investigation of Brazil and India for the next couple of months. 

 

Again, thank you for the interview. And I will be sure to access the link with Rupert Murdoch.  

 

Cato.

 

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