2022 was not just a U.S. bear market but a global one, and many international and emerging markets are trading at significant discounts.
Like any great contrarian investor, this is the point when tycoon investors make their move. So what are the secrets of the new tycoons? And why does whatever they touch seem to turn to gold?
They think more independently.
They use the very best information.
They act boldly.
Tycoons know that the difference between perception and reality is an opportunity to make a killing.
Right off the bat, here are 10 profitable new tycoon realities:
10 Realities Tycoons See That Most Others Don’t
The new billionaire tycoons grasp that wealth and capital, power and diplomacy are making a dramatic pivot to the Pacific Rim and emerging markets. Just as the 20th century was centered on the Atlantic, the 21st century belongs to the nations bordering the Pacific Ocean. But the perception that it’s all about China is dead wrong.
Where the West sees chaos, turbulence and poverty, the new tycoons sense emerging growth, profitable change and opportunity. They don’t need a think tank to tell them about the rise of the middle class in the Pacific Rim and emerging markets – they see and profit from it every day.
While this economic pie of $6 trillion in new spending power is enormous, the new tycoons would laugh at investing in traditional blue chips like Procter & Gamble (PG) to capture this growth. They invest in the next blue chips with monopoly power to capture the biggest slice.
The new tycoons are real capitalists like the American tycoons of the early 20th century. But putting their own money on the line makes them more conservative than their bureaucratic, clerkish, gray descendants that manage Fortune 500 companies today.
They exploit and profit from the truth that emerging markets ping-pong sharply between euphoria and despair. For example, a young Argentine walked into the office of George Soros in 1990 and convinced him to invest $10 million in Argentine real estate. Several years later, this contrarian gambit became $190 million and eventually turned into a fabulous $500 million real estate portfolio.
New tycoons look beyond the headlines that always mirror conventional wisdom. In fact, they love bad headlines because they scream opportunity and value.
New tycoon capitalists pay close attention to politics and diplomacy since they realize that shifts create opportunities, and most countries are a blend of free markets and state capitalism.
New tycoons are both street smart and global – looking beyond their home country for opportunities worldwide.
These new tycoons build their fortunes by paying very careful attention to price – investing in high-potential opportunities only when they are “on sale.” This minimizes downside risk and maximizes upside potential.
Rather than just react, tycoons anticipate, thinking 3-4 steps ahead. This is the difference between being a king and a pawn.
Opportunities Outweigh the Risks
Now, quite frankly, following the new tycoon blueprint is not for everyone.
Yes, there is a bit more risk investing in the leading food company of Singapore, Chile, Australia, Panama, Indonesia, Malaysia, Mexico, or Taiwan than investing in Kraft Heinz (KHC), but the potential rewards are far, far, greater.
In short, just imagine the opportunity right now to invest in the Johnson & Johnson (JNJ) stock of a century ago. This is how the new tycoons are building their fortunes at lightning speed while most investors keep falling further behind.
This is your opportunity to invest like a tycoon – let me tell you how to seize it. Join my Cabot Explorer global investing advisory today and get ready for profits in 2023!