13 November 2017
Dear Fellow Investors,
There is a magic carpet ride that never seems to end. It is the technological revolution that is changing the world and the way we invest.
Electric cars, smart phones, big data, artificial intelligence, automation and robotics are the places we want to have exposure.
Inari which we bought a year ago has been a play on Apple and smart phone technology as Inari manufactures the radio frequency chip for the Apple phones as well as other phones.
SATS one of our Singapore holdings has been a play on automation. They have a virtual monopoly on ground services and catering at Changi airport in Singapore. They have been replacing human workers with robots to reduce head count and increase profits.
Their latest quarterly/ half year report released yesterday shocked many bearish analysts. Profits, growth and earnings were up despite profit margins of air lines being squeezed and on this earnings release the share jumped 6.8 %.
Based on their recently signed contract with JetStar to provide in flight service for over 600 flights a week and the opening later this year of the 4th Changi terminal, growth in earnings should be sustained which should result in higher dividends and a higher share price.
Kossan Rubber another one of our holdings has performed in part because of their focus on innovation and automation which has resulted in lower worker headcount and increase in profit margins. There completion of a new modern production line will increase profits
Uchitech, a recent purchase for our managed accounts leverages on microprocessors for medical equipment and coffee machines.
Our most recent acquisition- Nidec- is a play on robotics, automation, micro motors and electric car components.
When we invest in any company we need to focus on how the company increases earnings with technology.
Low interest rates virtually world wide below inflation rates and loose monetary policies help the carpet fly. The new Federal Reserve chairman, Powell is a super dove and will provide stimulus to keep the carpet flying.
Trump fired Yellen as she was not dovish enough and she was a Hillary Clinton supporter.
Our newly hired analyst, Angelina, is tech savvy having recently graduated with a degree in mechanical engineering. We look forward to her research on technology focused companies to make more money for you.
Invest well and grow your wealth
Bill
Today’s critter is a mallard duck from Canada
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