The Hindu Business Line : Investment Nuggets

Known for his proficiency in emerging markets, Mark Mobius, Executive Chairman of Templeton, guides the judgment of many fund managers across globe. Joining Templeton in 1987 as president of the Templeton Emerging Markets Fund, he offered US investors the first emerging market equity fund. He was also the Joint Chairman of the Global Corporate governance Forum Investor responsibility Task Force of the World Bank. With over 40 years of expertise in emerging markets, he is regarded as the God-father of investments in emerging markets.

Below are the few nuggets picked up from his public speeches:

“It is very easy for us to be caught up in emotions or simply follow the herd. I would suggest that investors take a long-term view to investing, carefully evaluate their options and of, course, diversify their holdings. History has shown us that the best time to buy is when everyone is despondently selling. This enables us to pick up stocks at more attractive prices. The markets may continue to be volatile at times, but the underlying fundamentals of emerging markets remain in tact.”

“The rationale behind my interest in emerging markets is that these countries grow faster than the developed markets and, of course, there is a wide range. If you take countries like Nigeria and South Africa and you average their growth rate, you’ll see that their growth rate is about double that of the United States, Japan, and Western Europe. So what we’re trying to do is capture that growth and of course make money for investors. But of course the risks are very great, because there’s no free lunch.”

“The time of optimism is the best time to sell. Also, when everyone else is dying to get in, get out.”

“Investors should be prepared to invest for the long-term. Stock prices are not only dependent on fundamentals but also on market sentiment. A change in either can cause stock prices to experience great volatility, be it in emerging markets or in developed markets. Investors should also be aware of the different types of risks (economic, liquidity, operational and currency) involved in investing in emerging markets so that they are in a better position to make an informed decision.”

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