Mobius had a humble beginning. He once ran a consulting company that even marketed Snoopy merchandise. Destiny, however, had other plans for him. He went on to be an ace investor and eventually spent more than three decades at the coveted Franklin Templeton Investments. It is also right to call him a statesman in every sense of the word due to his influence on the international policies for emerging markets.
Since time immemorial, finance and investing have been a grappling task for many. But he was a pioneer in emerging market investing. While the greats like Warren Buffet donned the hats of an owner when it came to strategizing their investment techniques, Mobius donned the hats of an explorer. He believed in ground level research and said to have travelled to 112 countries over his career. Here are some nuggets of wisdom from his investment journey:
Embrace uncertainties
Building his career around emerging market investing, he often focused on what other people would ignore. While many investors found India to be a volatile target, he perceived India as a protective bet for long-term capital.
Ground-level research
Mobius believed that source of risk is the lack of understanding and not pace. He spent more time learning how a company actually made money by travelling extensively and spending time with people on ground and not just the price. In fact, financial statements may miss to portray the full picture! And, he found his way through kicking the tires.
The governance quotient
Trust is the cornerstone of investment. Honest and capable leaders matter more than fancy numbers. He was a staunch advocate of the fact that poor governance erodes value.
Focus on long-term growth
Patience is non-negotiable when it comes to investment. It is important to ignore the daily market noise and trust in the magic of compounding.
The art of diversification
Often known as Indiana Jones of investing, he aggressively diversified portfolios across geographies and asset classes as he explored investing in Asian countries and frontier expansion. He had always preferred equity investing as companies work to increase investor wealth.
Be wary of Macros but invest bottom-up
Many investors focus on the financials, competitiveness and the pricing of the companies. He, however, nudged us to focus on the macros-economic factors. To pick a case, a weak company may not withstand uncertainties like unstable political set-up.
Open and adaptive mindset
Decision-making improves when one adopts the mindset of a life-long learner. Flexibility in thinking comes as a great deal to sail through the ever-changing market conditions.
Mark Mobius has time and again advocated and proved that the essence of successful investing is consistency, patience and discipline. And, most importantly of all these things, he had stressed the importance of staying in good health and believed that health and wellness is the ultimate wealth!
(The author is a chartered accountant. Beyond the world of numbers, she is deeply passionate about public speaking and reading interests her)
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