Sunday, November 19, 2006
Don't underestimate life
For those of us who think are great, superb or just wonderful, I beg you, watch 'Crash' . This movie can be a revelation, a wake up call and a gift from God. If you think you are honest, you do only good, you are above any mistake, this movie is gonna slap you on your face and is gonna show you how things can turn. Remember to be humble, that's all this movie says. It should be teached in schools. Show it to your girlfriend when she's upset and she tells you you're not a man.
Sunday, August 13, 2006
Why invest in an emerging country
I guess everybody knows the answer to this question so what can I write new about it? Probably nothing, but I live in an emerging country so I thought one may want to no what a local thinks about this subject. So, why invest?
1. Because is cheap. In my country people earn 5 cents an hour so you can have an idea how cheap it is.
2. Skilled workers easily available. High unemployment rate is a characteristic of these countries so it should be easy to hire highly trained workers at no cost. Hurry up do, they will soon migrate to other countries where they can get paid better.
3. Except an atrocious beaurocracy there are no other barriers. You can easily set up a new branch and start make profit without much resistance.
4. Because you have to be there. These countries are virgin markets for your products and the consumers, not used with the product abundance common to free markets, will buy all the production you can make. The need for basic products is huge ( washers, TV sets, cleaning products, even bread!) is huge. But with such a low income, can they afford all this? The answer is you cannot imagine what sacrifices they'll do in order to buy your product.
5. Working for a multinational company is considered a big achievement here. This because people associate word 'corporation' with 'big bucks'. As I said, nothing new.
6. There are lots of old enterprises which are begging for a buyer. The government wants to get rid of most public owned company so there are many chances for a bargain. Do your homework well do, there can be many surprises.
7. With the company you also can buy the access to precious local resources. Wood, coal, metals, resources you can continue to use or you can trade are made available to you when you buy an old public company. Sometimes you find you have local monopoly.
8. Energy cost is very low. The local population cannot afford to pay high prices for gas or electricity so these are usually subventioned by the government. A situation you can profit for many years.
9. Cost of land. Dirt cheap in most of the countries, with an early start you can buy huge pieces of land for almost nothing. Local regulation ca limit you access to buying land so you may have to team up with a local company or to ask your lawyers to be very creative.1. Because is cheap. In my country people earn 5 cents an hour so you can have an idea how cheap it is.
2. Skilled workers easily available. High unemployment rate is a characteristic of these countries so it should be easy to hire highly trained workers at no cost. Hurry up do, they will soon migrate to other countries where they can get paid better.
3. Except an atrocious beaurocracy there are no other barriers. You can easily set up a new branch and start make profit without much resistance.
4. Because you have to be there. These countries are virgin markets for your products and the consumers, not used with the product abundance common to free markets, will buy all the production you can make. The need for basic products is huge ( washers, TV sets, cleaning products, even bread!) is huge. But with such a low income, can they afford all this? The answer is you cannot imagine what sacrifices they'll do in order to buy your product.
5. Working for a multinational company is considered a big achievement here. This because people associate word 'corporation' with 'big bucks'. As I said, nothing new.
6. There are lots of old enterprises which are begging for a buyer. The government wants to get rid of most public owned company so there are many chances for a bargain. Do your homework well do, there can be many surprises.
7. With the company you also can buy the access to precious local resources. Wood, coal, metals, resources you can continue to use or you can trade are made available to you when you buy an old public company. Sometimes you find you have local monopoly.
8. Energy cost is very low. The local population cannot afford to pay high prices for gas or electricity so these are usually subventioned by the government. A situation you can profit for many years.
10. Cost of building is also very affordable. Depending on the country, the cost of building starts under 100 Euro/sq and can go up to maximum 350 Euro/sqm. Not much if we compare with England, France or US.
These are 10 reasons to invest. There are much more then 10, I invite you to comment and offer you reasons to potential investors. Or if you had such an experience will be interesting if you can share your thoughts. There are also reasons not to invest in such countries. Which are these? Well, I have a big lists but you'll have to wait for another post. See you soon, folks.
Saturday, July 22, 2006
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