Too often we say, “I should have”, “I would have” and many other words that reflect regret. Why? Because we miss opportunities that go past.
Remember when BHP was down to only $20 in 2008 ? Remember when ANZ was down to $3 or when Telstra was down to $2.80? Remember when, in 1987, Microsoft launched its operation against IBM and Hewlett-Packard? You would have spent $1000 to buy their shares and today you would be sitting on over $100,000.
So how do we find the next Microsoft or BHP? Are they likely to be in Australia, USA or China? For most of us, China is known today as an economic dynamo that may continue to help our economy out of recession. We know that because we hear it every day on the news or read about it. But buying shares in a Chinese company? That may be beyond many of the trading population’s intention.
Scanning the global share market and searching through the world’s data is a good way of researching and staying up to date. At FS Securities, we study the performance of various company’s. We look for a small company in the right industry, with good management and where consumption trends are up. But this information is not always readily available and you may doubt the accuracy of it in your research. This is where technical analysis comes handy.
When we talk about spending and consumption, are you aware that as an example the car industry in the USA produces about 13 million cars per annum (until recently) and as yet only 4.3 million were bought. Recently in China, in the first 6 months of 2009, more than 6 million new cars were bought. So now you see where I am leading into this discussion. Consumption is based on supply and demand. China needs more products and raw material than we they have available. So prices will go up and profit will increase to many companies.