Updates on managed accounts

7 Dec 2019

Dear Fellow Investor,

After visiting Nidec, the world’s largest maker of micro electric motors  in Kyoto, Japan, I decided to buy for some of our managed accounts. All the pieces fit: Earnings growth, financially solid, well managed, low debt, and diversified revenue streams including USD.

They  are involved in AI and robotics, both high growth areas.

I was able to purchase at a reasonable valuation, however my timing was off and it suffered a steep correction.  However,  Earnings did not suffer. Company insiders accumulated on the price break and nothing dramatic happened so I decided to hold. Price has since recovered and with the pickup in the technology sector it is well positioned for more gains.

I was pleasantly surprised to read in the latest Forbes business magazine that Nidec was selected as one of the top potential investments for 2020.

Below is the Forbes write up.

The whole focus of investing is to put the odds in our favor, nothing is certain  and by visiting the company and reviewing the financials  does improve the odds of profit.

Media hype about the trade war, Brexit and Trump impeachment are dominating the financial news flow.  This is creating volatility and large price swings but I have confidence in our investments so we should not be worried.

In the end Trump will keep power, and there will be a trade resolution. I have no idea about Brexit but we have no UK exposure so that is a non issue. Hong Kong is slowly getting back to normal so expect recovery. Property prices in Singapore are bottoming and in some sectors are beginning to rise . Once political uncertainty in Malaysia is resolved expect foreign funds to come back in size. This will benefit some of the big caps.

Invest well and grow your wealth,
Bill

Critters of the week are our security geese.

We keep geese behind our house for security.  They are  the best security guards. They are always on alert.