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Travel For The Investor

I own shares in a real estate investment trust out West. Being East coast based, I have to mostly 'trust' in virtual and second hand research.

Except when I go on vacation out West.

Then I take the opportunity to check out as many of the properties as possible. Many properties in this specific trust are motels so I can actually stay there. I talk to people. Is it busier than last year? Is management taking care of the place? All those questions a fund manager would ask, I ask.

I do the same with the international companies I'm holding in my portfolio. Only 37% of Coca-Cola's net revenue (excluding bottling investments) comes from North America. If I don’t understand what is happening in these other countries, I shouldn't be investing. Understanding is so much easier when I can see the local markets in action. For Coke, that means strolling down local grocery aisles, watching what the local street vendors are selling, looking for branding.

Some companies also will arrange for plant or office tours for shareholders. Yep, even minor shareholders. I've dropped in on a Coke office in London and spoken to employees there.

My real estate buddies are always on the look out for heating up markets and great deals. Investing overseas directly, however, requires a whole other skill set than locally. Be cautious.

Posted by Kimber on June 3, 2008 6:00 AM |

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