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Why do Jardine Matheson trading at PE=3?!


zippy1
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Look at the latest investor presentation deck. How much came from pension adjustment & property revaluation. Statement on 2011 earnings.

 

Understanding the conglomerate business model, & Jardine's place within it, will take you a long way. Investment in BrasCan (Cda), Canadian Pacific (Cda), HK Bank (Hong Kong), DeBeers (S/Africa), GE (US), etc. works on very similar principles. 1 company, that is the economy of the region.

 

To do well you must fully understand currencies (spot vs PPP), index arbitrage, & be prepared to hold for the long haul (P/E paid reduces by the compounding growth rate differential [(1+(g.asia -g.home)^n])). Not for the faint of heart.

 

SD

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