What do a discount retailer in Turkey, a wealth manager in China and a pharmaceutical group in Mexico have in common? They are all high-quality companies, that are fairly valued and well governed. And this makes them three of my favourite stocks.
Despite short-term macro-economic headwinds, emerging markets (EM) are on a sustained upcycle as aggressive Covid-19 vaccinations begin globally, and the market shifts its focus to re-opening trade and the medium- to long-term structural growth potential not currently captured by EM valuations.
The case for emerging markets is easy to find in the numbers: 5.8bn of the global population of 7.2bn people live in emerging market countries, and by 2023, 80% of the world’s middle-class consumers will live outside Europe and the US. The growth potential in these markets is massive, which makes a strong case for holding stocks in high-quality companies across these regions.
Just be careful to abandon core investment fundamentals in unfamiliar territories. When heading into new markets, investors need to have a clear philosophy, and they need to conduct rigorous due diligence. Here are three quite different stocks in three different countries that I am bullish about.
BIM
Esta historia es de la edición 9 July 2021 de Finweek English.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.
Ya eres suscriptor ? Conectar
Esta historia es de la edición 9 July 2021 de Finweek English.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.
Ya eres suscriptor? Conectar
THE HEALTH OF SA'S MEDICAL SCHEMES
As the Covid-19 pandemic abates, finweek takes a look at the financial performance of some of the largest players.
The effect of Gilbertson's departure
With Ntsimbintle Holdings now the major shareholder of Jupiter Mines, it could change SA’s manganese industry.
Making money from music
Why investors are increasingly drawn to the music industry.
Conviction is key
Sandy Rheeder plays a critical role in Mukuru’s mission to open up financial services to the emerging consumer market in Africa through tailor-made technology solutions and platforms.
The post-pandemic toolkit
How CFOs can use technology to support growth.
Big city living exodus
Mini cities like Waterfall City and Steyn City are redefining city-style apartment living.
Big compact, big value
Handsome, with a hefty level of standard specification, the roomy Haval Jolion compact crossover is a great value proposition.
On barriers to entry
There are various ways in which a company or sector can achieve competitive dominance. They usually make for good investments.
Fear and greed in one index
To buck the trend, when markets are hot or cold, is a tough thing to do. However, it can deliver solid returns.
Africa's largest data centre facility coming soon
Vantage Data Centers plans to invest over R15bn for its first African data centre facility in Attacq’s Waterfall City.
