{"id":31864,"date":"2012-08-27T07:22:26","date_gmt":"2012-08-27T11:22:26","guid":{"rendered":"http:\/\/countingpips.com\/forex-news\/2012\/08\/a-look-behind-the-stock-of-the-blue-ocean-century\/"},"modified":"2012-08-27T07:24:54","modified_gmt":"2012-08-27T11:24:54","slug":"a-look-behind-the-stock-of-the-blue-ocean-century","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex-news\/2012\/08\/27\/a-look-behind-the-stock-of-the-blue-ocean-century\/","title":{"rendered":"A Look Behind the Stock of the Blue Ocean Century"},"content":{"rendered":"

Article by Investment U<\/a> <\/p>\n

It was the end of innocence.<\/p>\n

Once upon a time, I naively believed that we live in a free market global economy where companies competed fairly on a level playing field.<\/p>\n

That was until I studied Japanese business practices for a year in Tokyo, worked with the U.S. Congress and the U.S. Treasury, and then was appointed to represent America on the board of the Asian Development Bank in Manila.<\/p>\n

From my perch, watching how the great game is played in Washington and in capitals around the world, I learned some useful lessons:<\/p>\n

    \n
  1. How companies, like a U.S. energy company I helped, snagged and financed a $100-million contract in a matter of weeks through identifying key decision makers.<\/li>\n
  2. How a small, privileged elite club of families that I got to know command the controlling heights of emerging market and Asia-Pacific economies \u2013 and why what they touch turns golden.<\/li>\n
  3. How companies are not treated the same at all – with some enjoying the benefits of being owned or closely allied with governments and key decision makers.<\/li>\n<\/ol>\n

    We all like to believe in free markets, but the rising countries in the Pacific Rim are playing by a different set of rules. \u201cCrony capitalism\u201d is one way to put it. Another is \u201csemi-market, state capitalism.\u201d<\/p>\n

    In a \u201csemi-market, state-capitalism\u201d world, governments and influential business leaders play a key role in deciding who and which companies will win or lose. This is especially true in emerging markets where 83% of the world\u2019s consumers hold court.<\/p>\n

    This means that, unfortunately, investing in overseas companies with abundant talent and initiative, a great product or service, and the capital to execute a well-thought-out plan are sometimes not enough<\/em> for big and lasting gains.<\/p>\n

    In short, it\u2019s to your great advantage to invest in companies with strong influence within the country\u2019s business and political power structure.<\/p>\n

    A \u201cBlue Ocean\u201d of Opportunity<\/strong><\/h2>\n

    This is one of the four drivers behind what I call \u201cOperation Blue Ocean\u201d – my quest to pick the stock of the Pacific Century.<\/p>\n

    Here\u2019s a brief overview of the four drivers with their weightings in case you would like to try your hand in picking the best stock to capture decades of Pacific Rim growth:<\/p>\n