People speak of investing secrets all the time, but when the rubber meets the proverbial road, research is the real secret for delivering investment profits. That is why so many people subscribe to investment newsletters, clubs, read trade journals and pay for broker services. Warren Buffett is the only person known that seems to have found the secret cache of investment secrets, and his recent miss hasn’t marred his near-perfect shine at all. Berkshire Hathaway has an innate ability to deliver investment profits to its investors. That is primarily due to Mr. Buffett’s remarkable in-depth research.
Conducting exhaustive research is the only way one can be truly confident with the investment choices they make. Most people in the markets invest in what they know; what they understand, and according to Warren Buffet, that is a good idea. The desire to beat rising inflation is a concern to all investors, but finding the right investment vehicles is not necessarily going to be easy. Some investors will choose real estate, others pick gold and precious metals. Still, most will rely upon the stock markets and bonds. Knowledge is power, and the axiom holds true when it comes to finding the best ideas for generating investment profits. The best bet for generating wealth is to perform detailed research within emerging markets and sift through the opportunities. That is it, pure and simple.
Foreign markets such as Australia offer a great example of an investment environment that many investors would mistakenly overlook. A small debt to GDP ratio spells stability, and Australia was not affected by the economic storm Europe and the United States experienced. As such, they are uniquely positioned to supply China’s voracious appetite for natural resources and investment, making it a favorite destination for foreign investors and industry leading shipping companies.
For investors seeking knowledge and wisdom in foreign markets, like Australia above, “eyes wide open” is the best advice. There is no panacea, no reservoir of secrets from which to scoop a daily portion of winners. For an opportunity to discover a secret investment that has yet to be exploited, go where other investors are not. The fact of the matter is that it is up to the individual’s insights, research, confidence and risk tolerance, to uncover the investments that both feel right and have a history that makes them worthy of an investor’s precious time and money.