07/06/10 Gaithersburg, Maryland – I’d like to share one anecdote with you that says a lot about how the world is changing.
Last week, Caterpillar, the world’s biggest maker of earthmoving equipment, said it was boosting its production in Brazil and China. It’s building a new facility in Brazil to build things like backhoes. And it is quadrupling its output in China over the next four years. It also plans to base an executive in Asia for the first time.
Think about this: Caterpillar gets two-thirds of its sales outside of the US. It shed 19,000 full-time jobs last year. This year, it will hire 9,000 workers. But more than two-thirds will be outside of the US.
I’ve said it before, but it’s worth repeating: Investors must look abroad for growth.
Chris Mayer
for The Daily Reckoning
Chris Mayer
Chris Mayer is managing editor of the Capital and Crisis and Mayer’s Special Situations newsletters. Graduating magna cum laude with a degree in finance and an MBA from the University of Maryland, he began his business career as a corporate banker. Mayer left the banking industry after ten years and signed on with Agora Financial. His book, Invest Like a Dealmaker, Secrets of a Former Banking Insider, documents his ability to analyze macro issues and micro investment opportunities to produce an exceptional long-term track record of winning ideas. In April 2012 Chris will release his newest book World Right Side Up: Investing Across Six Continents.
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