Investing in a recession.
By : Khawar Nehal Date : Tuesday 3 August 2010.
According to Bloomberg, it seems like the recession is over. If not worldwide, then at least in the US. If the US still is the shop for most of the world's goods, then I can safely assume that the global recession is likely to be reduced also and in a certain amount of time the global economy shall start picking up pace. Even in times of so call crises and recessions or more aptly a depression, there are small pockets of economic growth. An example is the freight forwarders and moving companies in Dubai. They experienced more than usual orders to move household belongings out of Dubai. Last year I saw almost every building in Sharjah had a moving van parked in the alley with one apartment being cleared for export out of the UAE. After doing market research for new companies in Dubai, the results are as follows : The people who have been continuously living in Dubai and Sharjah who rode out the storm of the depression are pessimist of the economy. Those arriving for jobs are having a very hard time finding jobs. There are several companies in Sharjah who prey on these visitors. The visitors on a visit visa are around for an average of 1 month. The so called recruiting companies ask for various amounts averaging 150 AED from the candidates. They clearly advertise no money from candidates but coax them into paying on the pretext of filing and paper work charges. Then they act like there is an interview and use delay tactics waiting for the visitor to leave after their visa term is finished. They need to avoid people looking for jobs on long term visas. Advice for job applicants from outside countries. Ask for real references from any type of supplier of any kind of services or products like a job, business or physical item. There are many con artists waiting for the uninitiated. People from India and Pakistan can be fooled because in Pakistan they have two options. Physically close a shop via mob power or politely ask for their money back. These techniques are not feasible in UAE and the only option is a low win probability court case. This situation shall continue until the consumer protection laws and systems are pushed. From what I have seen, it is very hard to support and maintain a consumer protection in Pakistan and shall also take many years for this to work in UAE. A lot of work needs to be done and we are willing to guide people in this cause. Now back to the main topic of investing in a recession. Like Mr. Buffet says. Buy at a low price and sell at a high price. I translate this to sell first by asking potential buyers what they shall pay and to confirm ask for an advance payment. Then buy after the selling is confirmed. You shall get lower volumes, however this technique has worked and is compatible to the techniques which Mr. Buffet proposes. I have a track record of starting and running small businesses with a return on investment of 10 months. Mr. Buffet has a track record of buying low and selling high and is one of the richest people in the world because of this simple strategy. Now many people smart people shall be wondering. If I am so smart and this strategy is simple and it works, then how come we are not rich. The reason I understand for this is very simple. The smart people do not have the jazba to execute the strategy. The execution requires focus, persistence, and many other things which are all summed up in the subcontinental desi term of jazba. An example is : Jazba at the level of a Junoon, so you do not give up. Ok enough of the reasons and the terms. For more information grab an experienced real desi for a more clear definition.