Warren Buffet's famous line: Life is like a snowball - the important thing is to find wet snow and a really long hill. I classify wet snow in venture-backed equities which are fresh off the IPO shelf, backed by top-tier VCs and with key management still vested. The hill in the first year has the steepest gradient and the wettest snow are stocks backed by top-tier venture capitalists who have chosen the right management and laid the foundation for success. I have earned my returns for the year by only seeing/hearing financial info from venture capitalists who show me what they are doing with their money.
Emerging markets will remain a high-octane play on the global recovery and reflation theme. If the bull market continues in 2010 and stocks finish the year higher, emerging markets will likely have another year of outperformance relative to developed markets. The winning strategy would be to avoid underexposure to value stocks, small-cap venture-backed equities and international markets (especially Asia).
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