Wednesday, November 15, 2006

Book Review: Finding Hot Spots In Global Investing

Finding the Hot Spots: 10 Strategies for Global Investing

What Is It About?

This book is about investing globally in emerging markets. The author is a founder of an independent research group specializing in covering emerging markets. The book is designed to provide the new investor with a basic but thorough understanding of the issues, both postive and negative, of investing in emerging markets. The book is refreashingly compact, packing a lot of information in ten short chapters covering just about 200 pages. It was a very easy read without being mind numbing or simple.

What Did I Get Out Of It As A New Investor?

This is a good book for a new investor who is interested in learning about the benefits of investing in emerging markets while minimizing untoward risk. The author efficiently explains how to quickly and easily invest in foreign companies (use ADRs, which are stocks of foreign companies listed on U.S. stock exchanges that provide the same financial disclosures required by the SEC of U.S. companies); how to set up a diversified, but focused, portfolio of foreign stocks (invest across sectors); and explains how to avoid common mistakes when selecting foreign companies (avoid companies whose competitive advantage depends on regulatory protection).

In addition, this book provides value by citing to sources where one can find information related tro global investing. For instance, did you know that the continent of Africa has 94 ADRs listed on U.S. stock exchanges or that the country of Malaysian has 13 companies with ADRs listed on U.S. exchanges? Neither did I before reading this book. One can learn this and other useful information by using the link citation to the Bank of New York ADR website as provided in the text. The above are just a few examples of useful facts provided, with corresponding links, which aid the new investor in researching emerging markets.

The Good News

A new investor who desires to invest in emerging markets would benefit from acquiring and reading this book. The material presented is well balanced in discussing both positive and negative aspects of foreign investing.

The Bad News

The more experienced investor who has already gained competence in foreign market investing may find this book useful only as refresher material.

The Bottom Line

A solid introductory text on investing in emerging markets worth consideration for purchase.

Other Related Reading:


1 comment:


Excellent book on global investing.