FUND MANAGER SCOTT DOUGLAS: “Personal hygiene products and pharmaceuticals are one of the fastest growing sectors to invest in. Everything around health care, aging, hygiene, its what the future is.” A Squawkonomics interview at the Foreign Correpondent Club of Thailand, Bangkok, with fund manager Scott Douglas from IMFG Financial.
This is Squawkonomics. I am Keith Hilden and we are having an interview with fund manager Scott Douglas from IMFG Financial. Scott, it’s a pleasure having you here today at the Foreign Correspondent Club of Thailand.
Scott: Thank you.
Keith: Your investing philosophy seems to be something I heard in China one day. In the sense that even if the government doesn’t exist the next day, whatever happens in society, people still need to eat, people still need to work, people still need to go about their daily day. So you’re talking about the more niche areas of life that would be severely affected and affect stocks, but toilet paper stocks probably aren’t going anywhere, right Scott?
Scott: That’s right. People still need to as humans fulfill their basic needs. And as long as there are more humans on the earth, and the population is still growing, then everything we use on a daily basis is really the end product.
Keith: Interesting, so we touched on toilet paper, and there are countries that still don’t use toilet paper on a daily basis. You’re talking about investing in mundane products, that’s essentially what your investing philosophy is. Wouldn’t you see it very possible that more people will use toilet paper, wouldn’t you say this is a big growth sector?
Scott: Yeah, it’s huge. And personal hygiene products and pharmaceuticals are one of the fastest growing sectors to invest in. Everything around health care, aging, hygiene, its what the future is.
Keith: You seem to be a believer of what Warren Buffett says, if I can’t figure out how to value it, I don’t want it. And Buffett did say that if someone can figure out how to value an internet company, then tell me, because I don’t have a clue.
Scott: Well, because its not based on the fundamentals. Most of them are not profitable, and its all based on future customer expectations. But you only really need to look at how fluid it can be. Ebay, recently, we found out they have been hacked in March. A couple like Ebay that has done very well, their customer base has been hacked. So the security and fluidness of those organizations have been a huge issue. So those sort of businesses can come and go, and there’s so many people trying to get into that market, it’s an everchanging industry that hasn’t been around all that long, so to me I wouldn’t invest in those types of things.
Keith: Well I want to ask you, you’re in Thailand right now, has Thailand shown you anything in its capital markets that is attractive to you ? Are you going to take any Thai stocks back with you?
Scott: That’s a difficult one, because Thailand does have a good manufacturing base, there’s been a lot of Australian companies that have actually moved from Australia and run here. Here there is a massive gap in terms that it’s a massive class society. If I were to make a bet on Thailand, I would go into construction and property development, infrastructure, and transport.
Keith: Scott thank you so much for your time today, and I hope you have a pleasant stay the rest of your time in Thailand. This was a Squawkonomics interview at the Foreign Correpondent Club of Thailand, Bangkok.