Tom Stevenson: Go East Young (Investor) Man

Asia is where young investors should put their stock market money, argues Tom Stevenson in the Daily Telegraph:

Of course, Asia is not immune to the cold draught blowing in from the Anglo-Saxon economies. There was a grain of truth in the re-coupling argument that triggered the savage sell-off of Asian risk last autumn. But the long-term case for investing in Asia remains compelling. Here are four reasons why the best advice for a young investor is still to "go East, young man".

Read the linked article for Stevenson's four reasons. Great stuff, as he typically writes, though a little to top-down for me. I say that because my Asian stocks include Cheung Kong Holdings (Hong Kong) and NipponKoa Insurance (Japan) and I'm itching to buy more. Of course, companies like Microsoft, Fairfax Financial and 3i Group have Asian exposure. And at least a couple of stocks I've been eyeballing certainly have Asian exposure -- yet could never be thought of as "Asian plays."

I respect Stevenson immensely and enjoy his Telegraph columns. But for now, this middle-aged man is focusing on North America.

Comments

[Daniel M. Ryan]

I'd argue for Japanese equities, particularly. That market's been beaten down for so long, there must be bargains galore. Net-net ones, too.

[John]

@Daniel: True, but investors have to be VERY careful to try to buy companies with shareholder-friendly managements.

[Daniel M. Ryan]

Good point...I forgot about that.

[John]

@Daniel: You might check the Japanese holdings from folks like Third Avenue and Longleaf -- they invest there and try to find friendly managements, though even they have trouble at times.