Managing Buzz in a Slow Economy- Building a Better Investment
I would think by now it is clear to everyone that regardless of Trillion Dollar bailouts the markets and the economies of the world will be having a difficult time for the foreseeable future. So, how do we manage the diverse interests of Buzz Inc during this period while at the same time being in a position of strength when parts of the market start to recover.
The world’s current economic crisis is still playing out and it this stage it is almost impossible to predict the impact that it will have on different sectors during 2009. Buzz Inc has made some changes that will protect the company from the worst of the problems. We have scaled back efforts n some areas and cut other areas that were not profitable. Buzz Inc has also diversified the liquid holdings, spreading them over currencies and precious metals to insulate the impact of any particular currency collapse. Huge deficiets as predicted by Barak Obama could have an adverse effect on the US Dollar.
As the market does recover, we feel Asia will be at the forefront of that recovery. As western countries start spending again it is most likely they will be buying production that originated in Asia due to the comparative lower cost of production. We are also of the opinion that the crisis may well benefit some of the small nations in Asia, while they have not lead the economic boom the way China has, they have also not developed the rising costs that China has either. Veitnam, Philippines, Indonesia and India could well prosper over the coming year. Thailand has separate political problems, however as far as production it may well see growth in the later part of 2009.
Given Buzz is now expecting additional cash reserves through the sale or operation of the Lanna Project consideration must be given on how to use those funds for the long term good of all shareholders. The Dividend we see as the start of a corporate culture of making and delivering a return to shareholders on an annual basis, while this is not the traditional approach to managing a growth company, or an investment company like Buzz Inc, we feel it is a course that will build shareholder value over time.
With many traditional company practices, securities, derivatives and some currencies now in question, there clearly is the opportunity to re-invent a quality equity that has regular modest returns to shareholders and maintains growth through hard work and innovation rather than debt and fancy accounting.
It is our plan to devlop Buzz Inc into a broad spectrum company with diverse and successful homegrown holdings that will be a must have in any serious investors portfolio.
