2018 should be a positive year for our investments.

11 December 2017

Dear Fellow Investors,

Our focus for 2017 has been mainly on multinational companies with Malaysian subsidiaries.  Examples include Heim, Carlsberg, Nestle, Inari and Uchitech. We also have some glove exposure as well as Gas Malaysia.

Biotechnology products commercializing health care services are examples of the many offerings of Uchitech.

This equity balance has allowed us to profit from  well managed, financially sound

businesses .that pay regular dividends.   

It has allowed us to outperform our KLSE benchmark.

Our 2 tech companies- Inari and Uchtech are leveraging on   the world wide boom in AI, fintech, micro processors and robotics.

Inari just announced their 1^st quarter 2018 results. Profit margins expanded from 14 % to 18 %. ROE increased, earnings advanced and net profit was up.   Although the PE was 26.08 the PEG ratio (Price/ earnings growth) was only 0.4 meaning growth is expanding faster than earnings- a very positive sign.

Our latest addition- Nidec Corp listed in Japan for our PGWA accounts  is unchanged in price despite the 8 % correction in world technology shares. If you think the disruptive technology of electric cars will snow ball,  Nidec is the share for you.

In 2018 we will be seeking similar companies that are disrupting the status quo, are off the radar screen, and meet our very strict criteria for sound management. We will be visiting these companies to get on the ground exposure and feedback from management as we do for all the companies we place in your portfolios.

2018 should be a positive year for our investments.

Below are some comments from  Gary Dorsch of Global Money Trends .

“Nowadays, it’s a waste of time to try to figure out the state of the world economy, or that of a local economy when trying to judge whether to invest in a local stock market, or not. Instead, all that really matters is the rate of inflows of liquidity injected by the central bank into the local money markets.” 

With Trumps new tax reform and near zero interest rates expect money to flow into equities world wide. .As the Malaysian election nears expect more liquidity to flow from our central bank.

As we hold the above shares mentioned please consult me if you wish to buy.

Invest well and grow your wealth

Bill

Today's 'critter' is a lance-tailed manakin which hails from Costa Rica to Northern Venezuela.  It is a small, compact bird about 13 centimetres (5 in) long.  Both sexes have the two central tail feathers elongated to form a spike.