Really brilliant and a tour de force.- Michael Spence, PhD, winner of the Nobel Prize in Economics
Frontier markets account for 71 of the world's 75 fastest-growing economies and 19% of the world's GDP—yet many investors largely ignore them. Fueled by access to technology and information, frontier markets are emerging even faster than their predecessors, making them an essential component of a globally diversified portfolio.
Nobody understands frontier markets better than Marko Dimitrijevic, and in Frontier Investor he shows, through colorful case studies, compelling charts, and fascinating travel anecdotes, that it is not only possible but prudent to invest in these unfamiliar and undervalued markets.
Frontier Investor explores
Frontier Investor opens up a whole new world, and world view, to the broad investing public.
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"Frontier Investor is terrific. This book is great for anyone interested in investing in the next frontier. It is also excellent for those who want to understand the growth potential and human consequences for these many diverse countries and their people. It is really brilliant and a tour de force."
Michael Spence, PhD, Winner of the 2001 Nobel Prize in Economics, senior fellow at the Hoover Institution, professor of economics at the Stern School at New York University, and former dean of the Graduate School of Business at Stanford University
Marek Belka, President of the National Bank of Poland and former Prime Minister of Poland
"A brilliant and entertaining book that teaches the why, how, and where to invest in the new emerging markets. Marko Dimitrijevic is the grand master of frontier markets investing. Read this book."
Tony Robbins, entrepreneur, philanthropist, and best-selling author of Money, Master the Game: 7 Simple Steps to Financial Freedom
"A fascinating primer for the investor, businessman, diplomat, or anyone else with an interest or duty to perform in the world's rapidly emerging 'frontier' nations and markets. Dimitrijevic's message, deftly delivered through a combination of insightful statistics, entertaining vignettes, and hard-won personal experience, comes through clearly: 'Do your homework and think broadly to understand the forces at play.' A must-read guidebook to the world's changing economic landscape."
General Stanley McChrystal, (ret.), former Commander, Joint Special Operations Command, and senior fellow at Yale University's Jackson Institute for Global Affairs
"Marko Dimitrijevic writes about a fascinating topic with the depth that only someone who has done it for years can have. Frontier Investor tells stories of success and failure. Pick it up and read it."
Arminio Fraga, PhD, former President of the Central Bank of Brazil and founder, Gávea Investimentos
"An inspiring point of view. Marko Dimitrijevic’s experiences across Europe, Asia, and Latin America make him ideally suited to tackle the investment challenges of this rapidly changing world.”
Aleksander Kwasniewski, former President of Poland
"Dimitrijevic presents a solid, practical and trustworthy guide for those interested in the wide range of opportunities frontier markets, such as Colombia, have to offer."
Álvaro Uribe, former President of the Republic of Colombia
Part One explains why frontier market investments should be in every global investor’s portfolio. It argues that the mainstream emerging markets have emerged, and today’s frontier markets are posed to follow a similar path.
Part Two is a primer on frontier markets investing. It looks at how and where to invest in frontier markets today—directly, if possible, or indirectly, for investors unable to invest in frontier markets but who still want to profit from their growth.
Part Three explores how to navigate the political and other risks of investing in frontier markets, the megatrends that may provide exciting investment opportunities in the coming years, and future opportunities in places beyond the frontier like Cuba and Iran.
The Introduction introduces the author, defines what a frontier market is, and gives a road map for the rest of the book.
Chapter 1 explains how the traditional distinctions between emerging and developed markets have blurred or disappeared, and the one surviving distinction between them is the price you pay for growth.
Chapter 2 traces the path of evolution of yesterday’s frontier markets into today’s mainstream emerging markets and describes how today’s frontier markets are on a similar path.
Chapter 3 describes frontier markets’ fast growth and argues that the strong macroeconomic fundamentals of today’s frontier markets will help these markets mimic and accelerate the path to emergence taken by today’s mainstream emerging markets.
Chapter 4 highlights frontier markets’ favorable demographics—large, young populations—and the one-time demographic dividend of modernization.
Chapter 5 discusses the integration of today’s frontier markets into the global economy and how technology and education in particular will accelerate this integration.
Chapter 6 makes the case for frontier market equities on a valuation basis: they’re cheap, they trade in inefficient markets, and they provide portfolio diversification.
Chapter 7 addresses the pitfalls of passive management of frontier market investments and makes the argument for active, and sometimes activist, frontier markets investing.
Chapter 8 discusses do-it-yourself frontier markets equity investing for self-directed investors.
Chapters 9 addresses investing in special situations in frontier distressed debt.
Chapter 10 explores investments in privatizations, from the eastern European voucher programs of the 1990s to current efforts by many frontier markets to privatize state-owned assets.
Chapter 11 looks at the political risks of investing in frontier markets.
Chapter 12 examines the macro- and microeconomic and “headline” risks of investing in frontier markets.
Chapter 13 discusses megatrends that will inevitably drive major changes in frontier markets in the coming years and that may provide exciting investment opportunities.
Chapter 14 ponders the possibility of future investment opportunities on the frontiers of frontier markets—those markets currently closed to outside investors—as well as in places beyond the frontier, such as Cuba, Iran, and North Korea.