Finding the Hot Spots

Praise for FINDING THE HOT SPOTS


"David Riedel's Finding the Hot Spots provides keen insights into the new reality of investing with a global perspective. Internationally diversified investment portfolios reduce risk while enhancing returns, as many American-based individual and institutional investors have discovered in recent years. Riedel succeeds in providing simple, effective tools and strategies."
--J. Craig Chapman Managing Director, Long-Term Asset Management (HK) Limited

"Finding the Hot Spots simplifies and demystifies international investing and makes non-U.S. markets alluring and accessible . . . a must-read for all individual investors."
--John D. Meserve Chairman, BNY Jaywalk, Inc.

"Anyone considering investing in emerging markets should begin by reading David Riedel's Finding the Hot Spots. This excellent book explains how to reap the benefits while avoiding the risks of investing in the world's fastest growing economies. Having worked with David in Thailand during the peak of the Bangkok Bubble in the mid-1990s, I believe few people are more qualified to write about this subject than he is."
--Richard Duncan Author of The Dollar Crisis: Causes, Consequences, Cures

Chapter 1 Invest Internationally for Yourself 1

Chapter 2 Think Globally, Invest Locally 11

Chapter 3 Diversify—Don’t Put All Your Eggs in One Basket 33

Chapter 4 Understanding Relationships: Who Is Benefiting from Current Trends? 85

Chapter 5 Invest in Line with Government Goals 121

Chapter 6 Don’t Buy Regulatory Structure 139

Chapter 7 Know the Shareholders 155

Chapter 8 Buy the Banks 163

Chapter 9 The Impact of Currency 173

Chapter 10 Don’t Be the Last One In 185

Conclusion 193

Appendix 201

Index 209

"In this handy little book, Riedel gives you numerous ways to dream up and organize global stock ideas and investment themes."--Barron's, 12/4/06 DAVID RIEDEL is founder and President of Riedel Research Group, which provides independent equity research focusing on emerging markets in Asia, Latin America, and Europe. Prior to founding this firm, Riedel worked as an analyst at Salomon Smith Barney in New York and Bangkok. While overseas, he supervised a twelve-person research team covering telecommunications companies and other industries in Southeast Asia. While in New York, he covered business services stocks, including staffing and outsourcing, as well as small-cap growth companies in the automobile and motorsports industries. Global investing is a necessity for the twenty-first century. Not only does it provide diversification and opportunity for profits, but it also helps protect some of your hard-earned dollars.

In Finding the Hot Spots, author and professional equity research analyst David Riedel clearly illustrates how to identify and invest in non-U.S. companies—all with less difficulty and risk than you may have previously thought. By distilling the investment knowledge gained during his long journey throughout different foreign markets, Riedel shows you how certain tools and strategies can help you succeed when dealing with international equities.

This accessible guide opens with a detailed discussion of how international investing can help your portfolio keep up with the rapid pace of globalization. Here is where the risks and rewards of this approach are explained, and where the myths are debunked. Finding the Hot Spots moves on to examine the numerous ways in which you can invest in international companies through U.S. markets: from direct listings, where the foreign company simply trades on the New York Stock Exchange (NYSE), the American Stock Exchange (AMEX), or the NASDAQ; to Depository Receipts (ADRs) and trading unlisted securities over the counter (OTC). With this information in hand, you'll be introduced to the strategies every investor should use when creating a portfolio of international stocks. topics covered include:

• The benefits of diversifying by country, region, and industry
• Understanding the relative position of countries and companies
• The importance of investing in line with government preferences, policies, and priorities
• Knowing when a market has already gone up too much
• Why it's essential to be familiar with who the shareholders of a company are
• How currency fluctuations impact stock performance

By applying these and other lessons found throughout the book, you'll be able to find attractive foreign investment opportunities that are reasonably valued.

Engaging and accessible, Finding the Hot Spots provides you with the knowledge and confidence to enter international markets—from Brazil to China—and reveals the proven strategies and methods you can use to turn today's often threatening economic climate into personal investment success.

For additional insights and material, please visitwww.findingthehotspots.com

Praise for FINDING THE HOT SPOTS

"David Riedel's Finding the Hot Spots provides keen insights into the new reality of investing with a global perspective. Internationally diversified investment portfolios reduce risk while enhancing returns, as many American-based individual and institutional investors have discovered in recent years. Riedel succeeds in providing simple, effective tools and strategies."
—J. Craig Chapman Managing Director, Long-Term Asset Management (HK) Limited

"Finding the Hot Spots simplifies and demystifies international investing and makes non-U.S. markets alluring and accessible . . . a must-read for all individual investors."
—John D. Meserve Chairman, BNY Jaywalk, Inc.

"Anyone considering investing in emerging markets should begin by reading David Riedel's Finding the Hot Spots. This excellent book explains how to reap the benefits while avoiding the risks of investing in the world's fastest growing economies. Having worked with David in Thailand during the peak of the Bangkok Bubble in the mid-1990s, I believe few people are more qualified to write about this subject than he is."
—Richard Duncan Author of The Dollar Crisis: Causes, Consequences, Cures