BUSINESS LOUNGE Coretalk and the caribbean: neil patrick, ceo, lays out his vision Andre Burnett - Your Money Reporter
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pparently, foregoing bitter winters and grey skies for tropical sunshine and beaches is not an easy a decision as it might seem. For Neil Patrick, CEO of CoreTalk Caribbean and mobile telecoms veteran, the decision to leave the United Kingdom for a post at Digicel was a defining one. “Leaving the relative comfort of the UK to come and work for Digicel in 2006 was a big move, said Mr. Patrick as he spoke in the Business Lounge, “embracing a new culture and lifestyle was a great experience, one that I probably would not have started my company without”. The company of which Mr. Neil Patrick speaks is CoreTalk Caribbean, a company responsible for the selling, distribution and supporting the CoreTalk Customer Relationship Management- Short Message Service (CRM-SMS) software in the Caribbean. The Englishman who had aspirations of being a professional sportsman before being bitten by the business bug explained that CoreTalk is not simply a bulk messaging application. “CoreTalk… is an intelligent but affordable communications platform that allows any organisation to exploit the reach, low cost and immediacy of SMS in all facets of its business in order to save time and money, improve service or drive new business”, said the CEO. Stating that the company’s clientele ranged from multinationals such as Ford and Toshiba to small-to-medium sized entities (SMEs), Mr. Patrick made it clear that the software added value to business or organization. CoreTalk originated from an idea by its founder in SouthAfrica who was being overwhelmed by the number of phone calls he was getting because of his rapidly expanding small business. This focus on SMEs led to the versatility which the product is known by today. Mr. Patrick believes that because of this versatility the software can benefit organizations anywhere and as such plans to launch CoreTalk throughout the Caribbean whether directly or through distributors. Despite the differences in the business environment s of Jamaica and the UK, Mr. Patrick has found Jamaica to be a fertile place to do business. “There is a lot more bureaucracy here compared to the UK which is obviously frustrating, but at the same time there are a lot more opportunities if you have the resources, and patience, to take advan-
tage, stated Mr. Patrick, “Jamaica is arguably the most advanced mobile telecoms market in the English-speaking Caribbean and despite the fact that the weather is a lot better here, that is main reason that has kept me here”.
Neil Patrick, CEO of Core Talk Caribbean
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YOUR MONEY INSIGHTS Shaded Outlook:the impact of corruption and non transparency on FDI Andre Burnett - Your Money Reporter
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CORRUPTION PERCEPTIONS INDEX 2009
here is an old Persian proverb which states that a drowning man is not troubled by rain. Many a pessimist would say that Jamaica is currently grasping at straws in the choppy waters of economic and social trials with a chance of showers being a distinct possibility. At the risk of prolonging a metaphor, it seems that it never rains but it pours as Jamaica has been downgraded by yet another international agency. This time, the agency is Transparency International (TI) and the Berlin based agency has given Jamaica a score of 3.0 out of a possible 10 in its annual corruption perceptions index (CPI), a ranking of 99 out 180 countries. 9.0 - 10
8.0 - 8.9 7.0 - 7.9
put in to gain the full details of a business deal to more unsavoury aspects such as the price of bribery or the consequences incurred by not participating in bribery.
6.0 - 6.9 5.0 - 5.9 4.0 - 4.9 3.0 - 3.9 2.0 - 2.9 1.0 - 1.9 0 - 0.9
Jamaica has never been rated very highly since TI began publishing its annual rankings in 1993 but since 2006 where it had a score of 3.7, the decline has been rapid. There are some who may question the methodology and hence the validity of such a ranking as it depends heavily on third party surveys but few would deny that corruption is a scourge in Jamaican society. In fact it is a scourge that may affect us where it hurts most, in our collective pockets. It is not the most sensible of seafood chefs who sticks his hand into the lobster tank with no knowledge of number and size of the lobsters in said tank. Bad analogy aside, the same could be said of foreign investors who survey international prospects to contribute to a country’s Foreign Direct Investment (FDI). Why the stress on FDI? Simply put, over time, the importance of foreign input into the economies of developing countries has grown to a point where many local economies would suffer immensely if they were to lose such input. In 2008 alone FDI flows to Latin America and the Caribbean reached US$128.3 billion, which even after an expected drop of up to 45% this year is still a tidy sum. A lack of transparency and a subsequent proliferation of corruption are important signals when prospecting for investment. Non-transparency and corruption simply add additional costs to the running of a business, costs which an investor may lessen or avoid if they were to set up shop elsewhere. These costs may range from extra work being
As is evident by the steady decline in these ratings, something needs to be addressed and addressed soon. Corruption Perception Index 2009 Jamaica cannot Click here for the entire map afford to be undermined in its efforts to have some semblance of economic recovery, the bleeding of our ideals has to be stemmed and the wound that is corruption cauterized if we are to have any hope of stopping the slide.
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5 things investors should always remember Many investors suffer from anxiety by chasing returns, trying to time market movements, and hoping that their investments will continuously increases in value. A better idea, rather than stressing out over the movements of the financial markets, is to look for wisdom in time-tested methods. No matter if you are a seasoned investor or just getting started, there are a few sound points that we should all bear in mind when making investment decisions.
1. Modern Investing is Global
In the age of globalization, the line between “foreign” and “domestic” investing has become increasingly blurry. If there is one thing that the current economic crisis has taught us is that what impacts one country or region affects us all. So even if you choose to invest exclusively in your domestic markets, you still need to be aware of what’s going on in foreign markets. No investment analysis is complete anymore without looking at the global picture.
2. Invest In Good Companies, Not Good Markets
Markets are cyclical, and as such there will always be peaks and troughs in performance. Even a company that has positive earnings and growth may be affected by a general downturn in the market. That being said, it is better to consistently invest in companies that have good earning potential regardless of where the market is, rather than trying to time the top or bottom of the market. By buying in both high and low market conditions you will be doing what is called “Dollar Cost Averaging”, which reduces the risk of investing a large amount in a single investment at the wrong time.
3. Be Contrarian
Most people have heard the old rule of “Buying low, and selling high”. At any given time, stock prices are driven by fear and greed, and there is no better time to buy low than when the market is afraid. As mentioned in our last point, the goal is to find sound companies to invest in that are out of favor at the moment and hold the stock until they are in favor again. By investing in companies with positive earning potential when the market is low, we stand a greater chance of seeing our investment grow over time.
4. All Parts Of A Well-Diversified Portfolio Will Never Do Well At The Same Time
Following on our last point of being Contrarian, we must also make sure parts of our portfolios are operating in opposite directions. Lets say that your entire portfolio was made up of all fixed income securities (Bonds); you would see your entire portfolio increase and decrease in value as the market moved up and down. To temper the downward movement in the portfolio, we could add some equities (Stocks), as stocks and bonds move in opposite directions. This is the beginning of a diversified portfolio, and although both parts of your portfolio may not be increasing at the same time, you are better off making the average between the two.
5. Have The Courage To Stay The Course
For most people this is easier said than done, but by following the points mentioned above, there should be significantly less anxiety for holding an investment even in a downturn. First, by focusing on great companies, you can have confidence when the news is anything but reassuring, and can give these companies the benefit of the doubt. Second, if you create a portfolio that is made up of investments that thrive at different times, you are assured to earn a happy average throughout the portfolio’s lifespan. By investing a certain amount every quarter or every year (known as dollar cost averaging), you will automatically be buying more shares when stock prices are low and fewer when prices are high. Successful investors know that the key to investing is to have a well thought out strategy, and to be consistent in their investment habits. Although simple to execute, these few reminders can go a long way in helping to minimize the stress of making financial decisions. Keeping these few points in mind will also allow you to relax, and let your investments compound, understanding that your plan is rooted in knowledge, not hype. Of course, always remember to seek professional advice when making investment decisions!
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