Before I write much on the markets again, I thought I’d add something different so I don’t get bored of this blogging stuff too quickly. So firstly a warning I will stray off topic for a little bit.
I would have spent about a third of the year in Vietnam this year and am currently writing this from Dalat.
When I ask other tourists who have visited Vietnam where they ventured I tend to find it has often included Ho Chi Minh City, Hanoi and then Halong Bay, Danang and Hoi An and possibly Nha Trang. With limited time for our holidays obviously we can’t go everywhere, in fact I am a subscriber now for more “slow travel” and perhaps trying to limit say a 3-week holiday to just a couple of destinations within one country.
I am starting to believe that the more enjoyable travel destinations are those less researched, perhaps quieter and are not marketed as heavily. I have enjoyed the destinations mentioned above in Vietnam quite a lot, yet would have got more pleasure out of Sapa and Dalat where I tend not to meet many tourists in Vietnam here that went there.
Looking at all the destinations I have been to globally I think I enjoyed the various smaller game parks in South Africa the most. As an Australian I am particularly surprised I don’t hear of more Aussies exploring this as a holiday option, especially with Cape Town being such a beautiful city. Currency wise the weakening South African Rand has made things even more cheaper, even though I found it extremely cheap already in late 2013.
So what companies have I mentioned in the past on the blog that are not researched as much as others, enjoy a quieter or rarely discussed profile, and management or brokers are not out there touting the stock? For what it’s worth I think UOS & MVT fit that profile. As I write UOS I think will turn out very well buying under 50 cents. MVT if you can get for 14 cents, stock has traded there a few times over the last few weeks where I picked some up would be a good level to get set.
At the other end of the spectrum I try and avoid exciting stories as investments that are often very well “promoted”, junior resource explorers, biotech or technology stories as a group don’t offer good risk / rewards. They offer you many capital raisings to participate in if that’s your thing! In fact, any investment story that you feel excited about telling your friends over dinner I would be cautious about buying. Obviously there will be some outstanding winners though, but probably amongst many disasters. If something seems fashionable in the investment industry be careful. Being a late adopter with fashion in general is not the end of the world. My poor fashion sense probably means I am last on the trend. If I jump on the hipster bandwagon now for instance, the financial downside merely means paying too much on some thick framed glasses, beret & skinny jeans. Being late to an investment trend can lose a large portion of your wealth, just ask those investing in the last lot of tech IPOs in early 2000.
Next I plan on discussing whether we should focus a lot in searching for high quality companies as investments. Intuitively a lot of investors gravitate to high quality, but like how they gravitate to exciting sectors and stories in the market this can also lead to underperformance if one is not careful.
And in my email box today I can view someone’s top 5 Lithium stocks, what do you think?