Taking advantage of depressed stock prices around the world, emerging markets veteran Mark Mobius has been busy acquiring global equities. Bloomberg’s Fabio Alves and Monica Bertran wrote on Monday:

Mark Mobius said he’s “aggressively” buying consumer stocks, including cellphone companies, retailers, banks and furniture makers, as faster economic growth in China, India, South Africa and Turkey offsets sagging demand from developed nations.

“We see a consumer boom in all of those countries,” Mobius, who oversaw more than $24 billion in emerging-market stocks on Sept. 30 as executive chairman at Templeton Asset Management Ltd., said in a Bloomberg Television interview from Johannesburg. “Per-capita income is growing at a very rapid pace in these countries.”

Mobius, who has more than 40 years of experience working with emerging markets, thinks that the slowdown in the global economy might be shorter than most people expect. From the Bloomberg piece:

The global economic downturn may not be as long or severe as expected because of the coordinated fiscal and monetary stimulus put forth by policy makers worldwide, the 72-year-old investor said today…

The slowdown “will be rather short-lived and, of course, the markets will anticipate this,” Singapore-based Mobius said. “There will be some deceleration, but these are still fast-growing countries.”

São Paulo Stock Exchange, Brazil

Dr. Mobius also likes the prospects of Brazil, which he believes offers a great opportunity for investors. From the Telegraph (UK) earlier today:

Brazil has a growing consumer base with personal wealth to spend. This stands to benefit Brazilian companies, particularly in the consumer sector. Brazilian exporters also contribute to growth. We also favour undervalued companies with high dividend paying stocks, net generators of cash and low leveraged companies. At the same time, companies with a strong market position and competitive advantages are also attractive.

We continue to maintain a positive outlook on Brazil and its enterprises. We believe the irrational panic that forced many funds to withdraw from Brazil and the stress of the local currency due to the global liquidity concerns, have depressed valuations of the companies to create an enormous opportunity for investment.

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Sources:

“Mobius Says He’s Buying China, India, South Africa (Update2)”
Fabio Alves, Monica Bertran
Bloomberg, November 17, 2008

“Emerging market guru Mark Mobius punts Brazil”
Telegraph (UK), November 19, 2008

An Israeli toolmaker which is part of Warren Buffett’s Berkshire Hathaway is looking to acquire companies that are involved in the same business. Bloomberg’s Calev Ben-David and Alisa Odenheimer wrote yesterday:

Warren Buffett’s Iscar Metalworking Cos., the Israeli toolmaker that agreed to buy Japan’s Tungaloy Corp. in September, is seeking more acquisitions and sees the global financial slump as a buying opportunity, Chairman Eitan Wertheimer said.

“I’ve learned from my guru to be greedy when others are fearful,” Wertheimer said in an interview in Jerusalem, echoing a statement frequently made by Buffett. Iscar is part of Buffett’s Berkshire Hathaway Inc., which made two acquisitions in October and has committed $8 billion to buying stakes in General Electric Co. and Goldman Sachs Group Inc.

Iscar, based in Tefen, northern Israel, makes cutting gear for industries ranging from aerospace to auto manufacturing, for clients including Toyota Motor Corp. Berkshire paid $4 billion two years ago for an 80 percent stake in Iscar, which competes with market leader Sandvik AB. Iscar is looking for industrial companies that are in the same business, according to Wertheimer.

“We like to stick to basics,” he said. “If you sleep on the floor, you can’t fall out of bed.”

NEW VIDEO: What’s ahead for Apple?

Source:

“Buffett’s Israel Unit Iscar Seeking More Acquisitions (Update3)”
Calev Ben-David, Alisa Odenheimer
Bloomberg, November 18, 2008

Today, a guest post of mine appears on “MarketClub Trader’s Blog” from INO.com:

“Investing Legends Buying Up Stocks”

Legendary investors Jeremy Grantham and Warren Buffett recognize stock investors are in a panic, and are taking advantage of the situation by actively acquiring equities.

Marc Faber, known as “Dr. Doom” by the media, appeared on Bloomberg Television this morning from Bangkok and shared his short-term outlook for stocks and commodities. The editor of The Gloom Boom & Doom Report told Bloomberg viewers:

Global Economy:

For everyone, business is down. And in the U.S., if the statistics were compiled properly, the economy would be in recession also. The same in Europe. I travel extensively around the world. Compared to a year ago, all businesses are down.

Stocks:

I can see that stocks can rally because of psychological reasons. They’ve been oversold.

Crude Oil:

The oil price coming down is precisely a symptom of economic weakness. Not a symptom of strength.

Airlines:

Maybe there is a recovery going. I think one, in investing money, you should not look only at your personal experience. You can buy stocks of companies that are of poor quality. If they’re low enough, they can rebound. It’s like now the financial stocks. They have been hit very hard. Maybe they stabilize around this level and maybe they even rebound by 30 to 40 percent. I don’t think that they’re attractive from a longer-term perspective. I don’t think that stocks are attractive in real terms from a longer-term perspective. But I think that they can rebound somewhat.

U.S. Economy:

We have a tightening of global liquidity, and that tightening comes essentially from a diminishing U.S. trade and current account deficit. And I think that if the oil price continues to go down, as I think it’s very likely in the near-term for the next three to six months, as well as other commodities, then the trade and current account deficit of the U.S. could decline more than is perceived. And that would strengthen the dollar further, and in my opinion, if there is a contraction in consumption in the U.S., it is not a disaster for the U.S. because they don’t produce much anymore, but it would be very bad for the producing countries, the manufacturing centers of the world, that are mostly emerging economies.

Commodities:

The second half of 2008 of this year would not be favorable for commodity prices… As far as I’m concerned, we peaked out in commodity prices, and later on we will have to see whether it’s a longer-term peak or a short-term peak. But we don’t know yet.

You can view 9 minute 14 second Faber segment here.

Source:

Marc Faber Interview
Bloomberg, September 2, 2008

Bloomberg interviewed emerging markets veteran Mark Mobius, who shared his belief that Vietnamese stocks have tremendous investment potential. Bloomberg’s Van Nguyen wrote this morning:

Vietnam’s stock market offers investment opportunities after a 45 percent slump this year, said Mark Mobius, executive chairman of Templeton Asset Management Ltd.

“Vietnam’s stock market now is down, so there are more opportunities,” Mobius said in an interview in Ho Chi Minh City, where Templeton opened its Vietnam representative office today. “The market will go up and will be much more valuable in about three years.”

Mobius, who oversees about $40 billion in emerging-market equities, is increasing Templeton’s investments in Vietnam after it bought a 49 percent stake in the fund management unit of Joint-Stock Commercial Bank for Foreign Trade of Vietnam, known as Vietcombank Fund Management, earlier this year.

Ho Chi Minh City (Saigon), Vietnam

Nguyen noted the sectors Templeton’s Mobius is targeting. From the Bloomberg piece:

In Vietnam, Templeton will invest in retail banking, manufacturing and agriculture companies on Ho Chi Minh City’s stock exchange, Mobuis said. He expects the country’s economy to expand about 6 percent this year.

Source:

“Vietnam’s Stock Market Attractive for Investors, Mobius Says”
Van Nguyen
Bloomberg, August 22, 2008