K. Rahemtulla - Where In the World Should I Invest: An Insiders Guide to Making Money Around the Globe

Contents

Karim Rahemtulla is at the top of my list whenever I want on-the-ground feedback on any emerging market. For over two decades now Ive delighted in hearing Karims first-rate travel experiences to exotic lands. But what I appreciate most is his brutal candor when it comes to whats really going on in a country, from the politics to the local small business owners. Karims teachings of the pitfalls of global investing are a rarity on Wall Street. Combined with his successful, under-the-radar global profit opportunitiesthey are invaluable.

Julia C. Guth, Publisher, The Oxford Club Group

Well versed, well traveled, and well informed, Karim is the ideal guide for international investing.

Keith Fitz-Gerald, Chairman, The Fitz-Gerald Group Chief Investment Strategist, Money Map Press, Author, Fiscal Hangover: How to Invest in the New Global Economy (John Wiley & Sons, 2009)

If theres one person I would trust on what investments to make outside of the U.S., Karim would be my go-to guy. The true genius of his travels is the deep investigative results he comes away with after meeting business insiders, corporate executives, members of various foreign stock exchanges, and people in the trenches on the street. Karim gives multiple investing ideas including mutual funds and ETFs and individual stocks for places all around the world, including: Southeast Asia, Africa, the Middle East, South America, Central America, and Eastern Europe. It is fast-paced, well-written, funny, and truly worthy of your time, and it contains a wealth of information about where to shop, eat, and stay too! Karim has been in the investing business for 20+ years and his knowledge of global investing is superior to most in the field.

Lee Lowell, editor of The Instant Money Trader newsletter for The White Cap Research Group and a former NYMEX options market-maker

Karim is truly a modern day Magellan. Where in the World Should I Invest is proof positive that his insights into todays most fertile capital markets literally have no borders. Thank you, Karim, for sharing such a lucrative journey with us!

Robert Williams, Publisher and Founder, Wall Street Daily

Take some of the worlds most seasoned investment advice, mix with decades of globe-trotting, on-the-ground travel, dining, and research, and youll be glued to your chair for hours reading this book. Every traveler who invests, or every investor who travels, should have this book tucked under his or her arm when boarding their flight.

David Fessler, Energy & Infrastructure Specialist, The Oxford Club

Youd be crazy to invest in emerging markets without first reading Where in the World Should I Invest. Not only is it a fun and interesting read, Karim has had his boots on the ground in the countries hes written about, met with officials, and has a unique perspective you wont find anywhere else. Its a must-have for any emerging markets investor.

Marc Lichtenfeld, Associate Investment Director, The Oxford Club

Copyright 2012 by Karim Rahemtulla. All rights reserved.

Published by John Wiley & Sons, Inc., Hoboken, New Jersey.

Published simultaneously in Canada.

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Library of Congress Cataloging-in-Publication Data:

Rahemtulla, Karim.

Where in the world should I invest : an insiders guide to making money around the globe / Karim Rahemtulla.

p. cm. (Agora series; 69)

Includes index.

ISBN 978-1-118-17191-2 (cloth); ISBN 978-1-118-22678-0 (ebk);

ISBN 978-1-118-23990-2 (ebk); ISBN 978-1-118-26453-9 (ebk)

1. Investments, Foreign. 2. Investments. I. Title.

HG4538.R24 2012

332.67'3dc23 2012003554

For Isabel and Gabrielathe loves of my life. One of lifes greatest gifts is the gift of travel... embrace each opportunity to do so.

FOREWORD

Know Where to Look

Humility is the first requirement of successful investing. We have to realize that we dont know what is going on... and that we certainly cant predict the future.

That means we have to find investment positions that work out even when they are based on absolute uncertainty and near complete ignorance.

Richard Russell tells us that in the film business they say that nobody knows anything. I guess they are always surprised in Hollywood by which films are box-office successes and which arent. Sometimes, they bet millions on a film with high expectations, only to see it flop at the box office. Then, they are surprised again when a film that they barely funded at all becomes a runaway success. Being an old hand in the movie business doesnt mean you will pick a blockbuster every time, but at least you know where to look to find them. Then, all they can do is to take educated guesses, while recognizing that they will probably be surprised.

Karim can certainly take educated guesses, too. Hes been educated by roaming the world. He was born in Africa, studied in England and Canada, lives in Florida, and travels frequently. But theres more to this book than a series of educated guesses. Theres also a very big idea. And the only thing that bothers me about the idea is that it is too obvious. Wheres the surprise, I ask myself?

The idea is simple. The developed world is growing slowly, if at all. The emerging worldwhich includes all sorts of countries in all sorts of different phases of economic developmentis growing more quickly. Heres a stark and simple illustration:

shows what has happened over the past four years. There has been no real growth to speak of in the developed world. China is booming.