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Top stock picks: Asia's awesome foursome

Date: 10 Feb 2009

Across the world, share prices, company profits and even entire banks have collapsed. So in such turbulent times, where should investors put their money? Asiamoney has identified four regional businesses with strong competitive advantages that offer some welcome shelter from the storm.

Keywords (click to search): [Stocks] [picks] [YTL] [Want Want China] [Hindustan Unilever] [KT&G]

Naomi Rovnick
Why do some businesses fold at the first sniff of a recession, while others thrive whatever life throws at them?
The answer is competition. When a company is facing stringent competition from rivals, its only option is to bring its prices down, sacrifice profits and ultimately destroy shareholder returns. Throw in a global recession and its prospects are even bleaker.
No business is immune to competition, but there are companies that are better placed to fend off their rivals. Examples include Coca-Cola, with its strong brand loyalty, Apple with its unique products, or video gamers’ favourite Nintendo.
American economist Michael Porter, in his book Competitive Strategy, outlined a set of characteristics that a business should boast if it wants to prosper over the long term.

He pointed out that successful companies can raise their prices when their own costs get high; are so dominant in their markets they can demand...

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