Tuesday, April 2, 1996 | 11:59 a.m.
The key to good investing for the next decade lies in identifying companies with good management.
That's what several members of a panel of investment experts told attendees at a national investment seminar, the Las Vegas 8 Money Show, during a lunch Monday at Bally's.
The world -- especially the business world -- will see drastic changes between now and the year 2006. Products that companies make are likely to be entirely different, business locations could change significantly and even the types of industries companies are involved in might experience a dramatic shift.
"Managements will ultimately make the difference" between companies that thrive and those that die, said Michael Murphy, editor of the California Technology Stock Letter, as he advised the investors to put their money into the well-operated companies for the next decade.
In discussing industries they would invest in, the experts mentioned biomedical, communications, banking -- particularly international banking and consumer banking in developing countries -- gold stocks and anything in countries with sound currencies such as New Zealand and Chile.
China, with its 750 million population, 60 percent of whom are under 25 years old and a 90 percent literacy rate, "will shape the future of the global economy, predicted John P. Dessauer, editor of the Massachusetts-based John Dessauer's Investor's World. "They all want to get rich and live a long time. They're all little Warren Buffets."
When asked specifically about companies they would invest in, the experts mentioned companies ranging from Microsoft to Coca Cola.
Technology stocks recommended by Murphy and Jim Rogers, an author and investor, were Microsoft and Intel. Rogers also touted Barrick Gold Corp. as the gold stock to buy because of the company's strong management.
Elizabeth Bramwell, chairman and CEO of Bramwell Capital Management Inc. of New York City, threw out the names Roche in the drug arena because of its involvement in the biomedical technologies, Coca Cola and Illinois Tool Works. The latter recommendation was made because it provides supplies to a wide range of industries, she said.
Murphy recommended Vical, a biomedical products firm in San Diego, as one of his picks. One of Dessauer's picks was a Chinese firm, C.P. Pokphand, a poultry provider.
And, Rogers advocated investors getting some of their money out of the United States while it's still legal and before exchange controls might be imposed that would prevent overseas investments.
He suggested looking to New Zealand, Chile, Australia, Malaysia as possible sites for good foreign investments. He said in some cases overseas investing can be done by mail.
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