This Is a Marketing Pitch by a Fund Manager in USA ..
Dear Opportunistic Investor,
Picture this...
You’ve landed in Mumbai, India — the largest city in the entire world. And
now, you’ve stepped outside into the sticky heat. It’s early March, and you
flew in from the East Coast of the United States. So even as you wipe the
sticky sweat from your brow, the warm weather is a welcome relief.
You’re in shorts and a tee shirt. But this time, you’re not here to see the
temples on Elephanta Island... You’ve got a job to do. This trip is an
exploration. It’s an investment.
Sure enough, the trees are a deeper shade of green than what you’re used to
even at your home in Virginia. But the city’s all hustle and bustle — cars
veering every which way, merchants setting up shop along the streets...With
your backpack over your shoulders, you stroll on over to a taxi... Luckily most
everybody in India speaks English these days. So you tell the driver you need a
guide. Because you need to go somewhere tourists don’t usually go... Somewhere
most people outside India usually don’t know even exists.
The driver says he can take you anywhere you want.
You tell him — Take me to Dharavi...
Where Hope Runs Rampant
You won’t find it listed in the guidebooks... But between Mumbai’s 2 main suburban
rail lines, on the coast of the Mithi River... There’s a small plot of land
less than a square mile large. And in this tiny space lives a population
estimated at around 1 million people.
This is the neighbourhood locals call Dharavi. And they’ll tell you it’s a
slum...
Which means most foreigners will never see it. And that’s why many outside India — heck, many outside Mumbai itself — have
absolutely no idea that in the recesses of this former swampland exists an
economy pumping out as much as $1 billion per year.
Now, you might think that in such a densely populated area like Dharavi...
with so much capital being produced, crime is the driving economic force. But
it isn’t. In fact, Dharavi has a lower crime rate than many of the more visible
areas powering India’s rapidly growing economy.
And that’s because people come to Dharavi to work. They come to Dharavi to
get ahead. This isn’t a slum where hope has died — as it has in so many slums
of more developed nations. No. This is a slum where hope runs rampant. Because Dharavi is where the
poor can dream capitalism’s dream.
A Vision of Old-Time America
My name is Bill Mann. And I’m the Portfolio Manager for Motley Fool Funds.
Now, you may think that Dharavi trip I just described to you is the stuff
of movies... or of legends. Some sort of investor-friendly version of Indiana
Jones or the like.
But I actually made that exact trip with my fellow Fool Funds analyst, Tim
Hanson.
And what Tim and I saw happening in Mumbai’s Dharavi slum was truly — how
should I say it — life-changing.
You see, that day in India, we saw with our own eyes the very birth of
capitalism.
I mean, it was like a time-warp. One minute, we’re sweating in India’s
tropical heat... And the next minute, I’m seeing visions of every city’s slums
throughout every century of history.
I’m talking about places like Hell’s Kitchen in New York City...
Because in the 19th century, Hell’s Kitchen was little more than a shantytown.
But it had a huge influx of capital during the early to mid-20th century —
mainly from its flourishing waterfront and the longshoremen who were able to
find work there.
And by 2004 — it boasted a single land deal that brought in profits of more
than $20 million!
Now, Hell’s Kitchen, like other former slums in the developed world, built
its riches off the sweat of men and women who contributed to their own
well-being by working hard, saving and investing.
And that’s the exact same thing Tim and I saw happening in Dharavi — the
rugged formation of capitalism’s very backbone.
Putting Your Finger on Capitalism’s Pulse
Now, the birth of capitalism isn’t always pretty. And Dharavi certainly
isn’t the Taj Mahal. But here’s what I’m trying to say — Capitalism is alive and well...
throughout the entire world. And we believe investors like you should be profiting from capitalism’s
worldwide health.
In fact, the CEO of PIMCO and former manager of Harvard's endowment, Mohamed El-Erian, recommends American investors have a 30%-plus allocation in international securities.
What’s more, El-Erian has said that under-allocation in international
securities is the #1 portfolio problem facing individual investors like you and
me.
And if you’d come with Tim and me on that trip to Dharavi, you’d most
certainly agree with him.
Because after what we saw happening in India, we firmly believe that the
world beyond our borders has tremendous investment potential. And we want to
help you take advantage of it.
For starters, one thing you and I want to consider when we’re looking at
investments is the home country’s debt-to-GDP ratio. And that’s because a low
debt burden positions a nation’s economy for sustainable growth... which gives
investors like you and me a good chance for our own sustainable, long-term
portfolio growth.
Now, many emerging market countries have lower debt burdens than the
developed world...
For example, U.S. debt-to-GDP ratio has ballooned to over 107%, according
to the International Monetary Fund. And that means we owe more debt than every
dollar of our annual GDP. Still, though, I think you’d agree — the U.S. is
still a pretty solid investment. And will be for years to come.
But now, compare some key emerging economies... India’s debt to GDP is only
67% — nearly half the U.S.’s. While China's clocks in at a mere 22%. Nigeria is
at 15%. And Russia and Chile are at only 11%.
I think you’d have to agree... those numbers look pretty attractive for our
investment dollars...
Introducing Motley Fool Epic Voyage Fund.....
prospectus of the same can be downloaded using this link....http://foolfunds.onlineprospectus.net/foolfunds/epicvoyage/index.html?where=eengine.goToDocument%28%22Statutory%20Prospectus%22%29
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