“how many hours do you have?”

“― What factors do you look at, when you’re looking at these investments?

― Ah… well.. that’s a.. (laughs) how many hours do you have? (laughs) No, I mean, when we look at companies, the first thing we look at, is: what is this company going to do in five years? Are their earnings going to grow in five years or are they gonna decline in five years? We want a company that will have growing earnings over a five year period. In order to do that, we gotta find out who is running this company. Is the management capable? Is the management honest? Will they treat minority shareholders like ourselves fairly? Corporate governance, very important. Secondly, are they in an industry, which is growing? You know, we want an industry that is going to have good prospects going forward. And thirdly, what is the competitive situation? They may be in a great industry, but there’s so many competitors, it’s gonna be very difficult. So we look at all of these factors to come up with a number, what are they gonna do in five years.”

― Dr. Joseph Mark Mobius, speech in Tokio on Emerging and Frontier Markets, 01 August 2012


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