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Investment in the UK has reached tsunami proportions, ‘despite Brexit’

Savvy investors eliminate emotions and invest for fundamentals

I’ve been getting more frustrated by the ‘despite Brexit’ lobbyists. They are so pessimistic of the UK’s future. ‘Despite Brexit’ is the term that market commentators and economic ‘experts’ put on any item of good news released in the UK. ‘Because of Brexit’ is slapped on any bad news.

Read the newspapers, listen to LBC, or watch the evening news on the BBC, and you’d be forgiven for thinking that the whole world has lost confidence in the UK. This couldn’t be further from the truth. Inward investment in the UK is booming. About the only ones who aren’t confident of Britain’s future are the Brits!

Don’t believe me? The good news has been flooding in all year.

Buffett seeks UK investment despite Brexit

5^th May 2019

Warren Buffett, probably the best-known investor in the world, is targeting the UK for investment. And when he invests, he tends to invest big. He invests for value and the long term. One of his investment mantras is ‘Buy and hold. Never sell.’

How big is Buffett? His investment vehicle, Berkshire Hathaway, is valued at around £390 billion. He may “have a feeling” that the UK vote to leave the EU was a mistake, but he has said, “It doesn’t destroy my appetite in the least for making a very large acquisition in the UK.” (Read more at BBC)

Indian investment in the UK rising despite Brexit

25^th April 2019

The annual ‘India meets Britain Tracker’ has found that the number of Indian companies doing business in the UK has increased by more than 5% between 2018 and 2019.

842 Indian companies are now operating in Britain, with a combined turnover of £48 billion. The corporation tax that they paid last year almost doubled, to £684 million. The UK Minister for Investment Graham Stuart expects another leap next year, as a greater inward investment is spurred by a further reduction in corporation tax rates. (Read more at The Economic Times)

The UK tops the global ranking as the best investment destination despite Brexit uncertainty

19^th April 2019

Despite ‘continued uncertainty stemming from its intention to leave the European Union’, the UK snatched the top spot in the annual EY survey. This is the first time it has been placed top in the 10-year history of the survey. The UK accounted for 10% of global M&A activity. That’s huge. (Read more at City A.M.)

Norway wealth fund shrugs off Brexit plans rise in UK investments

27^th February 2019

You think Buffett’s fund is big? Then look at Norway’s sovereign wealth fund. It is the world’s largest, with assets valued at more than £750 billion. And it is planning to increase its investments in the UK, which currently include being a co-owner of Regent Street, and large shareholdings in companies that include HSBC and BP. And it says it will invest more, even if the UK leaves the EU with ‘no deal’. It has 250 employees in London and has said that Brexit will not affect this. (Read more at Reuters)

Technology investment cash continues to flood into the UK despite Brexit

5^th February 2019

UK’s tech sector attracted more venture capital investment than any other European hub in 2018. Way more. This has got to hurt London Mayor Sadiq Khan. He’s been banging on about how damaging Brexit is to London since the referendum in 2016.

It’s especially humiliating for Mayor Khan because the report uses data published by London & Partners (his promotional agency) and PitchBook. According to their figures, Britain’s tech firms raised almost £2.5 billion in 2018. £1.8 billion was raised by companies in the capital.

In 2018, London’s tech companies raised twice that of Berlin’s, almost 2.5 times that of Paris’s, and eight times that of Stockholm’s – the three European cities that raised closest to London’s tech sector. (Read more at Data Economy)

European investment into UK tech reaches an all-time high

9^th May 2019

Here’s one to put in your scrapbook. European funds are flooding into the UK, especially in the UK’s tech ecosystem. In this sector, European funds invested more than they have ever done in 2018 – a whopping £1.89 billion. Up from £1.66 billion in 2017.

The Penningtons Manches ‘Golden Triangle: Golden Opportunities’ report found that investment from EU countries is particularly strong. Overall, deals into the golden triangle of London, Oxford and Cambridge made up 70% of all overseas-backed deals. (Read more at UKTech News)

London overtakes Hong Kong in Schroders Global Cities Investment Index

14^th May 2019

The second-best city for investment in the world. The highest-ranked city in Europe, with Paris its closest competitor at number 17. Munich is in 28^th spot. Only Los Angeles ranks higher. This is London, despite ‘the economic and political uncertainty in the UK, especially surrounding Brexit.’ (Read more at IR Magazine)

The UK economy is strong, despite Brexit

There is something compelling about these news stories. They all have something in common: foreign investment. Why are foreigners so confident in the UK, and Brits so pessimistic? Could it be because Brits are so close to the situation that they can’t see the wood for the trees? Could it be that foreign investors are more inclined to look at the evidence than react to emotive headlines?

Look at what is really happening in the UK since the EU referendum in 2016:

The UK economy is around 4.8% larger
Employment is at record highs
The unemployment rate is at a 45-year low
The number of job vacancies is at a record high
Inflation is below the 2% target
Wages are rising at 3.4%

I could go on.

The IMF now forecasts that the UK economy will grow almost three times faster than Germany, and faster than France and Italy. Not one of the doom-and-gloom forecasts made before the referendum has come true. My message is this:

Forget what the economic experts say. Ignore the newspaper headlines. Take less notice of the CBI, the Treasury, and others. Focus on what is really happening. Businesses in the UK have created more than 1.1 million new jobs since June 2016. Despite Brexit. Business investment in the UK increased by 0.5% in the first quarter of 2019 compared to the fourth quarter in 2018. Despite Brexit.

Businesses don’t hire new people and invest in new machinery if they think the future is black. The truth is that the UK economy is robust and resilient. It is fundamentally strong.

Brexit uncertainty has created an opportunity that the world’s biggest investors, largest sovereign funds, most dynamic venture funds, and fastest-growing businesses from around the globe are exploiting. It’s a tsunami of investment.

Follow Buffett

For me, the most interesting of all the above headlines to me is the declaration from Warren Buffett.

The 88-year-old veteran investor has said he’s actively looking to make a large investment into both the UK and the European economies, despite all the uncertainty currently surrounding the future relationship. Over the years, Buffett has built a reputation for being an extremely well-measured investor, not least because of the vast amount of information that he gathers on a company/sector before investing in it.

His announcement at this year’s Berkshire Hathaway Annual Shareholders event should be a positive sign for investor confidence, especially amongst the negative headlines we have grown used to seeing day in, day out.

My advice is to act like Warren Buffett’s example. Take the emotions out of your decision-making and invest with the fundamentals. To learn how to do this, contact the team at Gladfish today.

Cheers,

Manny Esezobor

So Many Opinions, Not Enough Solutions

What will it be Brexit DEAL or Brexit NO DEAL…Stay tuned

Video Transcription:

Hey guys, so I just thought I’d give you a brief proper rant. So I thought I’d give you an update on Brexit. And you know, it’s interesting with Brexit. I don’t know what’s gonna happen, and I don’t think anyone does, really. I mean, it’s certainly looking like the Labor and Jeremy Corbyn and Theresa May are trying to thrash out a deal.

But it seems to be that they’re doing this not at the behest of their party. And I think that the problem really here is that you just have 50 different people have 50 different views on how things should be done and nobody’s prepared to give way. I

mean, everyone feels like they’re not being held accountable to anyone. So in other words, they’re not worried what their electorate thinks, they’re not worried. They’re more concerned about “How can I get outta this? How can I gain the most politically from this?” and I think that’s one of the unfortunate things for me. Is that it’s kind of, it’s really become, it’s a political football and nobody really wants to hold on to.

May has to, she doesn’t really have a choice. Corbyn has to, doesn’t really have a choice. And really, I think both of them realize that their parties are divided. So they’re not actually one party, there’s a number of different parties and there are not just two sides. There are multiple sides. And there’s a lot of players in the background that are just hanging back, almost waiting for the leftovers to pounce.

It’s almost like they’re hanging back and once they realize that May is dead, Corbyn’s dead, right when they’ll jump in and take over and unfortunately I think that’s what’s gonna happen. Is that May and Corbyn, their reputations and their ability to lead and govern are almost defunct. And I know she’s still got numbers and I know she’s still got that but I really think that they’ve lost the people they serve. And arguably, have they really been serving the people that they’re supposed to serve? I would say that politics has not been that way for a long time and I think that’s the unfortunate thing. And that’s the real victim here, is you and I who vote, you and I who they’re supposed to be representing. And really I think what we’ve lost sight of is, as human beings, we want to live a life free of government intervention and free to do what we need to do.

But what’s happening is more and more the governments are coming into our lives and saying “you can’t do this, you can’t do that”. And I’ve mentioned totalitarianism, it just seems to be, you know read that 1984 book, as I have mentioned a few times now. That’s where we’re heading. And it’s scary that George Orwell wrote something that depicts life unfortunately pretty well. I mean yes, we have freedoms, and yes, we have apparent freedoms. But on the other hand, it’s like the internet has opened up the world to us, but politics is closing it.

And I think, my theory around politics is: politics has been disrupted massively and I think this is the key here. Politics is being disrupted. They have no playbook for this and I think that’s the key here. They don’t have a playbook and with not having a playbook what it actually means is that they’re screwed. They’re making it up as they go along and they’re doing it really poorly. If you’re in an issue that’s being disrupted you need a strong leader to set the direction and stay that course.

And they need to manage their staff and they need to do all that and if they do that they generally are gonna get through. If they’re not they’re going to become more and more caked, defunct and eventually go into liquidation. Well, let’s face it. The government, it might as well be in company voluntary arrangement with where their credit is because they’re borrowing so much money. I mean, the US is the worst of them, by far the worst. Yeah, don’t even start on the US. But anyway, coming back to Brexit.

So what do I think is going to happen to Brexit. I mean, we got until June, so got a little bit of time but nothing really seems to be happening. In order for May and Corbyn to survive, they need to come up with a deal that they will back and get through. And it’ll probably get through by the thinnest of margins but it will get through. The other alternative is that come June 30 that EU will feel a bit antsy and say, “Well, see you later, guys, we’re not extending it. Get out of here.” and we have a no-deal Brexit. Which I don’t think is going to be as bad as many people thought because it’s been… The bad has been. And it has been a slow degradation.

I think that’s one of the keys. So, Brexit, it’s a dog’s breakfast right now and it doesn’t look like it’s gonna get sorted anytime soon. I’m hoping we get a deal, whatever that deal is and it goes through, just so we can get on with the future and get on with working on how we can get lifestyle and real social issues sorted. And some of those social issues are being created by Brexit. The stats don’t work, the stats are absolute rubbish.

The real life’s data here but being touted in the media is the hype and the hyperbole and it’s not right. But anyway, that’s the situation we live in. Right, guys, remember: like, share. I’m coming to you multiple time every week with videos and feel free to comment. I’ll get back to you on the comments as soon as I can. I’m really interested in having conversations, getting your thoughts.

All right, guys, have a great day. Live with passion, see ya.

Property News – Brexit Update

Video Transcription:

Hey guys, so Bretts Property Rants. So, I thought I’d jump into the Brexit thing. I’ve actually had a couple of, break for a couple of weeks on it. Because to be fair there was so much happening and nothing happening at all.

And I think, you know, just having had a couple of weeks break, not looking at anything, not actually reading the news, not even been interested in what’s been going on, just been letting it happen. You know, I was travelling and things like that. It’s interesting because I thought what I’d do is I’d come back, I published my book at the start of April, and what I realize now is that I have no idea what the next move is.

I mean, there’s plenty of ideas, there’s plenty of options. And, you know what? Somebody may win it, somebody may go, yes, that’s what we’re doing, and that may be the thing that happens. But the interesting thing is, there are so many different opinions with various bits of power but no one has a majority. No one has the ability to get one thing though, whatever that is.

And I think that’s gonna be the telling thing. I think, realistically, you know, it’s heading more and more like we could have a no Brexit, because I think the reality is in the absence of us being able to make a decision, we’ll be handing our sovereignty over to the EU, who could say, either, in or out, make a decision. And I think the problem is, the decision on out won’t be able to be made because all the stops, stoppers have been put in place.

And so the default will end up being we stay in. You know, the other alternative is that we keep fighting but the, you know, I mean, ’cause we can always retract the Article 50 and then re-invoke it. I mean, there’s nothing that says we can’t. But, you know, it’s amazing now to think that we’re in a position where no one party can win, nobody has the influence, nobody has the ability to, you know, I mean, there’s just a severe lack of communication.

I mean, I thought maybe May and Corbyn might have come up with something, but you know, the problem is, is that May is the Prime Minister, she’s not the party. And I think a lot of the party, you know, they’re not, they’re not siding with her now. You know, and often times the party whip would bring their party behind a decision that needs to be made. I think their whips probably need to be sacked ’cause they’re, they’re very ineffective right now.

So yeah, so it’s a bit of an interesting situation now. And I’ll keep monitoring it but I think, to be fair, right now there is no clear and definite way to look at it. I think anyone that says that they can and they know and this is what’s gonna happen, you know, I think they’re full of crap. I really don’t see, having spent a couple of hours just going through article after article and reading up on everything’s been going on, there’s no clear way.

You know, and whether the EU force our hand and say, no more extensions, so either in or out, I think that seems to be the most likely one now. I mean maybe May and Corbyn might get together and get the numbers but then, you know, where does that lead us from an internal perspective? I mean, we’re out but we also, once we’re out we need to focus on getting the deals in place and everything in place. And that’s, you know, that’s pretty hard. Without any coordination that’s gonna be a very hard one.

Alright guys, have a great day, live with passion

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