19/12/2011
By Adam Cadle
Traditional methods of stock picking are crucial if long-term investors are to continue to generate healthy returns in the current economic climate, according to First State Investments.
Head of global equities at the investment company Habib Subjally has emphasised that as the eurozone contagion continues to spread, stock investment in companies with a strong internal structure and central governance is crucial to ride the storm.
In addition, companies who are conducting their expansion in Asia are also a good choice for investment opportunities due to the ‘rising disposable incomes of the people in this region’ and the favourable demographics of the region.
Subjally explained: “Stock selection will be critical to generating equity returns in the context of a global economy that is demonstrating, at best, modest growth rates.
“We look for companies which benefit from positive competitive dynamics, expand their product range and geographical footprint, and are led by strong management teams which can turn those market advantages into returns for their shareholders.”
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