Fish where the fish are

Charlie Munger is a very wise and funny guy.  “Fish were the fish are, and you don’t have to be a very good fisherman to do pretty well”, is what the 94-year old master says, and that is some very solid advice everybody can understand and agree on.   But where are these places?   Do they still exist?  Where to look geographically?  In which sectors?  Which companies?  Or do we have to wait for better times?

I believe there will always be good places but these days they may be smaller and harder to find.  However, with a possible rising inflation you don’t want to be in cash, at least not for the long term.

One of those places could be Myanmar, just maybe.   The stock market is almost non existent with just a few companies listed on the Yangon stock exchange and little background information.  There are still high political risks with a remaining military influence, there are ethnical problems (Rohingya conflict), investments remain low, etc.  But since the country is more open for tourism and foreign investments while it is located between richer and more developed countries, everything could change very quickly the coming years.  Also Thailand could benefit economically from an awakening neighbour like Myanmar, but Thai stocks have maybe gone a little bit too fast the last year like the iShares MSCI Thailand shows.  I think it’s not the right time for that.

There is no Myanmar ETF as far as I know, and maybe it’s just a little bit too early but it is certainly worth to keep an eye on.

 

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