Ten top investment tips from Dr Mark Mobius
Dr Mark Mobius is one of the most experienced fund managers in the industry.
He has been managing the Templeton Emerging Markets Investment Trust since its launch 20 years ago. In that time the value of an investment in the trust has multiplied more than eleven times.
Here Dr Mobius draws on his years of experience to offer ten investment tips to Money Central readers.
1. Keep an eye on value
Is a share selling for below its book value? What is the relationship between the earnings and the price?
2. Don’t follow the herd
Many of the most successful investors are contrarian investors. Buy when others are selling and sell when others are buying.
3. Be patient
Rome was not built in a day and companies take time to grow to their full potential.
4. Dripfeed your money into the market
No one knows exactly where markets are going so dripfeed your money into the market by making regular investments. That way you will average out the ups and downs of the market.
5. Examine your own situation and your appetite for risk
You should not go into equities if you are the type of person who is nervous every time you read a stock market report.
6. Diversify your portfolio
You must never put all your eggs in one basket unless you have a lot of time to watch that basket - and most of us don’t.
7. Don’t listen to your friends or neighbours when it comes to making investment decisions
Your own situation is different from everyone else’s so you should be making the decisions.
8. Don’t believe everything you read in newspapers, because things tend to be exaggerated
Don’t be swayed by headlines and look at what is going on behind the scenes.
9. Go into emerging markets because that is where the growth is
Emerging markets have consistently grown much faster than the developed countries in virtually every year since 1988.
10. Look at countries where populations are relatively young
Countries with young populations are going to be the most productive in future years.
To listen to a podcast interview with Mark Mobius, click here.
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Gambling is a sin and will have consequences. Much better to put your money into a Christian bank.
Posted by: Graham Hughes | 30 Jun 2009 19:42:38
Graham I'm sure your perfect.... Get a life
Posted by: Rupert | 1 Jul 2009 06:44:46
Good advice, but Mobius's claim to have have produced an eleven-fold return since inception looks dubious at best. Looks more like a threefold increase since 1991, from a Canadian perspective at least. But like Mobius himself says, don't believe everything you read in newspapers. Bottom line: given the high MER attached to his Emerging Markets Fund, one would have been much better off buying and holding an ETF.
Posted by: Gerald Graham | 6 Jul 2009 15:37:51
Diversify. Extremely important and I'm glad to see it here.
I'm always amazed to see stories where pensioners have 'put their life savings' into a bad investment. Never, never, never, bet the bank.
Posted by: Ned Ludd | 10 Jul 2009 09:13:47
Dr Mark Mobius provides the Time's readers with the investment advices, which have to be taken seriously by every global investor!
Posted by: Viktor O. Ledenyov, Kharkov, Ukraine | 14 Aug 2009 12:57:13
Depends where you are. Emerging funds have securities in the fastest growing companies, in the fastest growing stock markets, in the fastest growing countries. EMF has been around since 1987, and with MSF, are both traded on the NYSE.
Mobius has said that “a closed-end fund structure gives the manager a chance to go into illiquid stocks without worrying about redemptions.” They support no web pages, they waste none of shareholders funds on advertising. There is no one there who will answer a phone. The only way you can buy into these funds is have your broker buy shares for you from someone selling out. Unlike Indexes, EMF and MSF usually sell at a discount.
Posted by: Owls | 29 Aug 2009 10:40:53
Readers should note that Dr. Mobius's fund was launched 12 June 1989 - a week after Tiananman Square.
By 1993 the fund was up five fold. In the ensuing fifteen years it is up under three times.
Please give not only "true" figures, but fair figures for Funds' performance.
Posted by: A commentator. | 16 Sep 2009 05:22:31
Hello,
My name is Jim Schroeder. I am the general partner of Hollam, Ltd, the owner of 21 Lakefront acres of commercial land in Central Florida. We have an investment scheme which involves some 600 (lakefront & golf) condo/hotel units and 600 estate lots - all on the golf courses.
We plan to form 3 factories and over 20 other businesses, employing 2,500 persons. We will also open an investment house in London. Our associates include a well known English golfer and (2) sports investment companies.
Projections show a 300% seven year profit with residual income thereafter.
Thanks for you interest.
Jim Schroeder
2655 Ames Haven Road
Kissimmee, FL 34744
Mobile: 407 973-4166
jim.schrdr@gmail.com
Posted by: Jim Schroeder | 17 Sep 2009 13:55:48
Graham, please tell me more it sounds so interesting
Posted by: deckomanilo | 19 Sep 2009 11:08:17