C&B Notes: Developing Markets
Charlie Munger on Berkshire & Buffett
May 14, 2012
Berkshire Hathaway Vice-Chairman Charlie Munger talks about the consistency of Berkshire and his feelings on the future of the company.
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A Simple Advance Aids Poor Farmers in Africa
May 6, 2012
Bill Gates shares a solution for a pest problem affecting a crucial protein-rich crop in Africa. Small, simple steps can create big gains.
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Power to the People
May 2, 2012
Economic growth and technological innovation are improving the quality of life for the poor in emerging markets. This is a powerful snapshot from rural India.
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Relentless Spread of Humanity
April 30, 2012
These satellite pictures, taken over the past few decades, reveal the before-and-after impact of the ongoing global population shift from the rural countryside to urban cities. The U.N. predicts that nearly 70% of the global population will be city dwellers by 2050.
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Cultural Differences Do Not Abolish Economic Principles
April 30, 2012
The significant investments that China has made over the past 5-10 years have been fueled in large part by debt. The Communist party is now forcing banks to roll over the loans made to local/regional governments because these borrowers are currently unable to repay these debts. The Chinese city of Chongqing is a case study in unsustainable leverage.
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Motorcycles as a Leading Indicator for Indonesia’s Growth
April 27, 2012
Another Asian-Pacific country is enjoying a nice tailwind, generated by attractive demographics and an exploding middle class.
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India Encounters Bumps in the Economic Road
April 26, 2012
While good demographics are an important ingredient for strong economic growth, it is insufficient on its own for the long-term. Governments must pursue sound/stable policies and have fiscal discipline. While we are dubious about the accuracy of the credit rating agencies, this downgrade by S&P is an indication of trouble for India. It will take political will to address the fundamental issues.
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Argentina Seizes Control of Oil Firm
April 20, 2012
Argentina moved earlier in the week to effectively nationalize the country’s largest oil and gas company, YPF SA, which is currently majority-owned by the Spanish company Repsol YPF. We have spent meaningful time on the ground in Argentina, and have observed the potential for business there if the country and its leadership showed better budgetary restraint and rule of law consistency.
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Coca-Cola and Gesture-Based Marketing
April 16, 2012
Coke continues to innovate new ways to market, including working hard to tailor its message for different audiences/cultures. We enjoyed this example of positive brand association.
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Kenyan Development: Start-Ups & Mobile Technology
April 12, 2012
The increasing prevalence of mobile phones and their related carrier networks are creating opportunities for both for-profit and not-for-profit entities to improve quality of life for people in underdeveloped countries.
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Saudi Leaders Avoid Arab Spring
April 10, 2012
Saudi Leaders are using riyals distributed through a variety of programs to proactively quell any potential uprisings.
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Wen Appeals to Shake Up Bank System
April 5, 2012
Premier Wen Jiabao argues that private investors should be allowed to enter the formal banking market and that capital controls should be loosened. A big part of the banking problem in China, however, is that most people do not have assets to borrow against due to murky property rights and the propensity of the powerful to steal valuable land and other assets. Real property rights are a necessary condition for a normal banking system.
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