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Archive for the ‘Sandy Nairn’ Category

Rich valuations for the stock market’s global elite

The news that Paul Walsh, the CEO of Diageo, has unloaded a huge amount of stock (£16m) after exercising a raft of share options draws attention to the extent that the prices of high quality companies with strong global business franchises and the ability to generate cash have been bid up to very rich levels. The veteran market-watcher Richard Russell has observed something similar on the other side of the Atlantic.

What do billionaires Warren Buffett, John Paulson, and George Soros know that you and I don’t know?  I don’t have the answer, but I do know what these billionaires are doing.  They, all three, are selling consumer-oriented stocks.  Buffett has been a cheerleader for US stocks all along. But in the latest filing, Buffett has been drastically cutting back on his exposure to consumer stocks.  Berkshire sold roughly 19 million shares of Johnson and Johnson.  Berkshire has reduced his overall stake in consumer product stocks by 21%, including Kraft and Procter and Gamble.  He has also cleared out his entire position in Intel.  He has sold 10,000 shares of GM and 597,000 shares of IBM. Read the rest of this entry »

Is Japan a buy? A new report says yes

My friend and collaborator Dr Sandy Nairn, the CEO of Edinburgh Partners, and former Director of Global Equity Research at the Templeton/Franklin group, argues the case for taking a long, hard look at the Japanese equity market in the latest briefing paper published by Independent Investor. You can download the full 20-page report Is Japan a Buy? for free from the Independent Investor website.  Simply follow the link on the right hand side of the home page.

The case for Japan has been made many times over the last 20 years, but the trend of the market, as we all know, has been one of prolonged decline, punctuated by periodic false dawn rallies. Dr Nairn concludes however, after looking in detail at the 40 year trends in Japanese profitability, growth, national debt and demographics that there are now compelling reasons for buying into the Japanese story. Many shares are cheap and it is a myth that all Japanese companies are condemned to earn lower profits than their counterparts in other countries.

Written by Jonathan Davis

January 10, 2011 at 11:59 AM