Mobius's Top Ten investment tips

I liked this story from Times Money Central June 2009 which lists Templeton Emerging Markets' Guru, Dr. Mark Mobius top ten investment tips:

1. Keep an eye on value
Is a share selling for below its book value? What is the relationship between the earnings and the price?

2. Don’t follow the herd
Many of the most successful investors are contrarian investors. Buy when others are selling and sell when others are buying.

3. Be patient
Rome was not built in a day and companies take time to grow to their full potential.

4. Dripfeed your money into the market
No one knows exactly where markets are going so dripfeed your money into the market by making regular investments. That way you will average out the ups and downs of the market.

5. Examine your own situation and your appetite for risk
You should not go into equities if you are the type of person who is nervous every time you read a stock market report.

6. Diversify your portfolio
You must never put all your eggs in one basket unless you have a lot of time to watch that basket - and most of us don’t.

7. Don’t listen to your friends or neighbours when it comes to making investment decisions
Your own situation is different from everyone else’s so you should be making the decisions.

8. Don’t believe everything you read in newspapers, because things tend to be exaggeratedDon’t be swayed by headlines and look at what is going on behind the scenes.

9. Go into emerging markets because that is where the growth is
Emerging markets have consistently grown much faster than the developed countries in virtually every year since 1988.

10. Look at countries where populations are relatively youngCountries with young populations are going to be the most productive in future years.

Templeton's Mark Mobius talks of emerging markets volatility ahead

In 2009, most emerging markets funds doubled in value from the March lows. In 2010,  returns have been closer to developed markets. The iShares MSCI Emerging Markets ETF is only up 1.9% year-to-date versus the FTSE 100's 4%, but has gained 78% on a 12 month basis.  The actively managed and top performing Templeton Emerging Markets investment trust (TEM) run my Mark Mobius is up 7.4% year to date  (98% on a 12 month view), three and half times the exchange traded fund, partly because the EFT is a dollar denominated fund and the dollar has signficantly strengthened against the pound in recent months . In this weekend's Barrons, Mobius says "If you're coming in now, make sure you dollar-cost average, and be ready for corrections," but Mobius expects emerging markets to post gains "in the teens or double digits in 2010, even with corrections along the way."

Update on portfolio - January 5th 2010

Nighthawk Energy (HAWK)
Average buy price 35p. Currently 35.75p to sell. Hold with news from Revere and Jolly Ranch project imminent.

Coal of Africa (CZA)
Average buy price 99p. Currently 115p to sell. Rising South African Coal prices driven by strong Indian Subcontinent demand have moved the share price up from the £1 level. Further news on Vele project and move from AIM to main market are catalyts for further share price appreciation. Holding.

Desire Petroleum (DES)
Buy at 85p. Sold at 108p. Placing and open offer deadline extended to January 11th. Open offer at 70p means that shares may well be sold on receipt which may depress share price during mid January. Watching for possible re-entry.

Falkland Oil and Gas (FOGL)
Buy at 132p. Holding at 128p.

JP Morgan Emerging and Templeton Emerging.
Short positions closed at loss due to continued strength in Emerging markets stocks.

Micron Technology (MU)
Buy at $10.3 closed at $11. Share on watch for repurchase.

Amgen
Average buy at $57.5. Currently at $57.8. Holding due to imminent drug approval news.

GW Pharma (GWP)
Buy at 84.5. Currently 88p to sell. Holding with European Medicines Review agency due end January. Approval of Sativex lead drug likely Q1 2010.