Rizal Philippines
July 22, 2019
I had a guest in my class, a Chinese, a relative of Lucio Tan, and I recall he was a VP at one of the companies of the tycoon. He compared his career with his relatives who migrated to the relative comfort of Canada. They feared the rallies, the NPA, the Muslim problems He decided to stay and quipped that statement "Invest in places where you see blood on the street." In Europe Japan or USA, it is fortunate that you get 6% ROI in US, 3% in Europe or in Japan 2%.... In the Philippines what is the ROI...
It makes sense to have this contrarian investment streak:
1. You have less competition; you can buy the asset cheap because many will be risk averse
2. There is no way but up; what goes down must come up;
3. LDCs and poor countries look up to Developed Countries thus want new things: cars, appliances
houses.
4. High risk high gain
5. No guts no glory
So we see Henry Sy investing in MoA, Megamall, and SM North during times of crisis.; (For the Chinese Ji Wei, opportunities and risk character look the same,. We look for opportunities in risk. There is risk, yes, but look first positively on the opportunity...)
His cousins came home to retire here in the Philippines several decades after. What happened to them? Well retired civil servants. And what happened to him. He is a senior officer at LT. And owns several businesses like a Cable TV company to name others...
So you see many investments made in emerging economies. Africa, Asia, Bangladesh Middle East. Especially China making forays into these areas. US and Europe placed their bets with the Philippines and what did they get. We had students from Shell Intl who viewed investment in PHL as great despite having demos vs oil price hikes, riots etc. They are here for the long term...
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