Mobius Leading Return to India

Interesting Bloomberg story about Templeton's Mark Mobius and other fund managers scooping up bargains in India. Mobius in particular is reportedly buying consumer stocks, as the nation's biggest banks say demand for cars and homes will help them ride out a global recession.

This bit from one of the fund managers mentioned in the article:

"We are like kids in a candy shop,'' Chowdhry said. "We can see lots of companies that we want to be buying at this level on a two to-three year view because we know we'll make a lot of money.''

Most likely true, yet I believe there are easier plays to make money over the longer term in the developed world at current prices. A reasonable person could argue that my recent purchase of Hong Kong-based Cheung Kong Holdings (CHEUY/OTC) contradicts that. But I don't think so. Hong Kong companies are found in both emerging market and developed market funds -- and Cheung Kong operates globally.

In any event, Mobius is an interesting guy and his thoughts and perspectives continually prove worthy of consideration.

Comments

[nk]

Succession planning for Cheung Kong is a concern. Li Ka Shing, the brilliant brains and authority behind that conglomerate is 80yrs old.

[John]

nk: I could always be wrong, because I am so often, but I'm not too worried about that. The old boy isn't running all those businesses under the Cheung Kong umbrella on a daily basis, and at 70 cents or so on the dollar I'm willing to take the risk. There may be a sell off in the stock when he eventually dies, but that's a short-term thing.