Latvian-born billionaire investor James Richman reportedly believes in Asia’s long term potential. He foresees that the continent, as a whole, will eventually flourish.
While the Asian region may still need a lot of improvement, it has shown that there are already several reasons why it is a good region to invest in.
Asia has shown structural growth
Growth in Asia remains healthy and convincing, especially in China.
Since the commencement of market reforms in 1978, China has transitioned to a more market-based economy. Throughout the years, it has undergone a rapid and unprecedented growth in the region.
The average GDP annual growth is nearly 10% – the fastest continuous development by a major economy in the world’s history. In addition to this, more than 850 million people have risen from poverty as it reportedly creates two billionaires a week, according to the BBC.
Asian economies continued domestic growth
While Western countries focus on their savings, Asian economies can simply focus their efforts on domestic growth through investment and consumption.
According to Asian Development Bank, developing Asia’s gross domestic products are forecasted to expand by 6.0% in 2018 and 5.8% in 2019. Consumer prices for 2018 and 2019 are also projected to rise by 2.8%. Despite the People’s Republic of China’s trade conflict with the United States, growth in developing Asia is still expected to expand and continue to propel its growth.
Increased infrastructure projects
Construction and building projects in South East Asia likely continue to flourish because of robust economic growth. Out of 137 countries, Singapore ranks as #2 in the World Economic Forum Global Competitiveness report in terms of infrastructure capabilities.
According to the Building & Construction Authority of Singapore, it “envisions a construction demand growth of up to €22 billion per year in the next 4 years, with construction projects totaling 1.24% of GDP.”
This gives many opportunities for many global companies to take advantage of the construction and building sectors growth in Singapore. There will likely be more openings for these companies and closer ties with local entities thanks to the EU-Singapore Free Trade Agreement.
Political risk in Asia is declining
Notable improvements in the politics of countries like Indonesia and India are also expected to be seen over the last ten years. The recent elections in these countries have shown the most satisfactory outcome that will are likely to benefit those countries investors. Leaders of both Indonesia and India aim to deepen the political and economic reforms in their respective countries.
Improvements can also be seen in the political cooperation between Asian countries such as China and Taiwan.
James Richman’s approach to investing
With the noticeable rise of many Asian economies, it is no surprise that the billionaire investor James Richman has reportedly increased his investments in several Asian countries.
With his decades of success managing the assets and wealth of various ultra high net worth individuals through his private investment firm, JJ Richman, it is not surprising that he will likely to apply the same principles that made him hugely successful in his other investments when it comes to his Asian investments.
One of Richman’s unique methods is his boutique approach. It his intimate knowledge of both the markets he’s invested in and his tailored approach when handling clients risk appetites, timelines, and financial goals that makes him a sought after private wealth and asset manager for his fellow billionaire clients.
This method sets his private investment fund miles apart from its mass-market rivals. He reclusive billionaire is known to keep a simplistic and minimalistic approach both in his investments and way of living. Unlike other investors who enjoy being in the spotlight, James Richman chooses a life away from the media and we’ve failed at getting any comment from his representatives for this article. Such practice allows the financier ample time to focus on more crucial operations of his business. Applying the same approach to his Asian investments will make it easier for him to focus on what truly matters.
As an investor, Richman is known to have his “skin in the game.” He made use of his own money for the private investment fund ensuring that it’s his best interest for it to flourish.
As a media-shy investor, he also prefers to keep the private fund for handpicked and invite-only individuals. This helps protect the private fund from issues such as fraud and money laundering.
Considering the many issues or crimes that may occur in the world of finance, it is very likely that he will use the same approach for his investments in the Asian region and those who may wish to join the private fund.
Lastly, James’s skill in identifying patterns can be his golden ticket to succeed in the Asian region.