{"id":32184,"date":"2012-09-10T05:22:13","date_gmt":"2012-09-10T09:22:13","guid":{"rendered":"http:\/\/countingpips.com\/forex-news\/2012\/09\/my-boom-chip-blueprint\/"},"modified":"2012-09-10T05:23:21","modified_gmt":"2012-09-10T09:23:21","slug":"my-boom-chip-blueprint","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex-news\/2012\/09\/10\/my-boom-chip-blueprint\/","title":{"rendered":"My \u201cBoom Chip\u201d Blueprint"},"content":{"rendered":"

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

I have carefully studied the success of Pacific Rim tycoons, from the world’s richest woman (from Australia) and Hong Kong’s Li Ka-Shing to Mexico’s Carlos Slim – the richest man in the world.<\/p>\n

Some of these tycoons were born into wealth, but many come from modest backgrounds. For example, Li Ka-Shing, after his father\u2019s death, had to leave school at the age of 14 to work 16 hours a day in a plastics factory. Slim is the son of Lebanese immigrants.<\/p>\n

But they all share one powerful trait – they grew their fortunes by building and investing in what I call \u201cboom chip\u201d companies\u2026<\/p>\n

The best way to describe a boom chip stock is to contrast it with what is in many ways its opposite \u2013 blue-chip stocks.\u00a0Blue chips are large, stable, mature companies based in Western markets with slow sales and profit growth plus dependable dividends.<\/p>\n

One widely held blue chip is Johnson & Johnson<\/strong> (NYSE: JNJ). Its international sales have tripled during the past decade, but its stock has performed poorly, with an average annual return of less than 1%!<\/p>\n

Another blue chip you\u2019re familiar with is Kraft <\/strong>(Nasdaq: KFT), a bundle of blockbuster brands like Jell-O, Maxwell House, Tang, Miracle Whip and Oreos.<\/p>\n

It\u2019s done a bit better than JNJ\u2026<\/p>\n

Kraft has 12 brands generating $1 billion each year, and Tang is the most recent addition to this exclusive club. With all these killer brands aimed at emerging growth, Kraft is expected to grow revenue around 3% a year over the next three years. Not bad for a food giant.<\/p>\n

While a stock like Johnson & Johnson or Kraft in your core portfolio is a great way to protect and incrementally grow capital, you\u2019ll need to think a bit more boldly if your goal is to build substantial wealth.<\/p>\n

\u201cBe an Adventurer\u2026\u201d<\/strong><\/h2>\n

You can put some sizzle in your portfolio by following John Train\u2019s advice in his book\u00a0Preserving Capital:<\/em><\/p>\n

\u201cBe an adventurer; like the American of a century ago, not his clerkish descendant of today. You must think as a builder, a conqueror.\u201d<\/em><\/p>\n

One way to do this is by investing in boom chip, home grown multinationals based<\/em> in Pacific Rim frontier countries. These dynamic \u201cfavored\u201d companies benefit from my\u00a0Boom Chip Blueprint:<\/em><\/p>\n