In a conference held in New York and sponsored by Bloomberg Foundation, people who deal with millions and billions of dollars were supplying ideas to the forum and if you watch You Tube you can view some of the presentations.
All of us have some bias connected with our decision making. Many years ago, living in a resource town, the radio station announced the price of the commodity in the morning news, as the price went up production went up and more money was spent in the community. It is not surprising people knew the price of the commodity.
Bloomberg Intelligence is part of Bloomberg Terminal which provides trading data to traders on Wall Street and around the world. The company has 350 analysts who study 2000 companies to help decide which ones will break through and why.
To do this first broad themes are identified and then which company is capitalizing on the trends. Bloomberg Intelligence believes the coming trends are:
Internet of Things Efficiencies
Real Estate Overcapacity
Emerging Market Opportunity
The company picked 50 companies who they believe will do will next year. If you want to know all 50 you have to be a customer. The 5 that were talked about were
IndiGo – an airline in India – has both a low cost structure; dominant share and expecting growth in India.
Hammerson – a real estate company in the UK which has flagship malls
FAST – a Japanese clothing company you might have heard Uniqlo one of their stores in North America
Chenier – a leader in LNG or Liquidified Natural Gas which should benefit from global energy changes
NXP – a company making chips for computers
The other theme is as cell phone companies bring out the 5G Networks, rapid changes are possible.
Linking to dividend paying companies, most of the above pay a dividend and the reason is the great cash flow. Went you are looking for the growth, you ask which way is the wind blowing and can it help you or what are the tailwinds? If you find a company with what you believe is the correct theme, ensure it has a good cash flow which some can flow into your pocket. That way, as you wait, you will be rewarded, as the company grows you are rewarded again
There are more questions than answers, till the next time – to asking questions.