"Please, re the question below, will you publish a list of who you would put on this list?
"As the festive season is upon us, I was in a Jewellery shop today, and the sales agent told me that 60% of a premium Swizz brand of watches went to China, and the rest of the world has to scrap for the rest. Really tells you something."
"Where and how can I find a list of "autonomies"?"
"Autonomies are the big, successful and genuinely multinational companies, and Fullermoney discusses them on an almost daily basis. Eoin may prepare a spread sheet list at some point. However, you may find it more useful to compile your own list in the 'Favourites' section of the Chart Library; because you know which stock markets interest you the most."
Eoin Treacy's view Thank you for your observations and
this question which I'm sure will be of interest to subscribers. I suspect the
brand you refer to is Rolex which remains a privately held company. However,
it certainly fits the bill of an Autonomy because it is globally diversified,
leveraged to the growth of the global consumer and dominates its specific niche.
Over the last few months I have been giving some thought to companies that could
fit into the Autonomy theme.
Many of the dividend aristocrats have the global presence, strong balance sheets
and flexibility to qualify as Autonomies. I have created a section in the Subscriber's
Forum, where you can access PDFs of the constituents of the S&P 500,
S&P Europe 350, S&P Pan Asia and S&P/TSX Dividend Aristocrats.
In Comment of the Day on November
18th I posted a list of the old Nifty 50 shares, where I replaced extinct
companies with those that had taken them over. I also posted a list of companies
that derive at least 20% of their revenue from Asia and Latin America.
of these lists offer useful starting points to develop a list of Autonomy type
companies. We should also ask ourselves whether the fundamental basis for our
decision is backed up by the relevant chart action. The highest degree of commonality
currently evident exists among shares leveraged to the growth of the global
middle class, primarily in Asia's population centres but also in Latin American,
the Middle East, Eastern Europe and Africa. The global breadth of this theme
means that creating a definitive list of Autonomies would be too restrictive.
However here are some initial thoughts.
the fast food sector: McDonalds is US Dividend Aristocrat and Yum Brands derives
over 48% of its revenue from outside the USA.
In the alcoholic beverages sector: Diageo is a European dividend aristocrat and globally oriented. SAB Miller is also globally diversified. “Asia / Rest of the World” represent the largest revenue streams for both Remy Cointreau and Pernod-Ricard. Anheuser-Busch InBev is the world's largest brewer and dominates the US market. Its Latin American subsidiary Ambev dominates the Brazilian market and is the sole distributor of Pepsi in that country. Singapore's Asia Pacific Brewery is based in Asia and is Heineken's partner in the region.
the non-alcoholic beverages sector: Starbucks represents a “lifestyle” brand.
Coca Cola is a US dividend aristocrat with one of the most recognisable global
brands and Asia Pacific is its fastest growing market. PepsiCo is not a dividend
aristocrat but its “All Other Counties” category is its fastest growing.
the food sector: Nestle is world's largest food company. It is a European dividend
aristocrat and its Asian revenue recently overtook that of Europe. Kraft is
the world's second largest food company. Its fastest growing business units
are Europe and “Other Business”. Heinz's fastest growing business unit is Asia/Pacific.
Unilever makes more money from Asia and Africa than any other business unit.
& Supplements: Mead Johnson Nutrition's Chinese revenues look set to become
its largest in 2012 or 2013. Asia Pacific represents Herbalife's largest and
fastest growing markets.
& Toiletries: Proctor & Gamble reports via three different units. Household
care represents 48% of revenue, Beauty and Grooming 33% and Health and Well-Being
18%. While the USA is its largest market, it is globally present. Colgate Palmolive's
largest market is Latin America and Greater Asia/Africa is its fastest growing.
Kimberly Clark's largest market is North America but Asia, Latin America and
Other represent its fastest growing markets. All three are US dividend aristocrats.
Reckitt Benckiser is a European dividend aristocrat and its Developing Markets
division is its fastest growing. Hengan International is China's largest diaper
and sanitary napkin manufacturer. The company is a Pan Asian dividend aristocrat.
Unicharm is one of Japan's best performing shares and is well represented in
Asia. Estee Lauder's fastest growing market is Asia Pacific. Nu Skin Enterprises
splits out its Asian revenue into North Asia, South Asia/Pacific and Greater
China which represent the majority of the company's revenue.
brands: 2011 was the first year that Asia ex-Japan revenues became LVMH's largest.
Cie Financiere Richemont's and Swatch's Asian revenues became its largest in
2010. Christian Dior's Asian revenues became its largest in 2009. North America
is still Tiffany's largest market but Asia is on a solid growth trajectory.
China represents BMW's third largest market behind the USA and Germany. Nike
might not be a classic luxury brand but it is certainly a lifestyle icon. The
USA, Greater China and Emerging Markets divisions represent its fastest growing.
the retail sector: Wal-Mart is a US dividend aristocrat and depends on its international
division for growth. Tesco is a European dividend aristocrat and Asia is its
fastest growing market.
the Healthcare sector: there are a large number of companies that could qualify
as Autonomies. Johnson & Johnson (a dividend aristocrat), Bristol Myer Squibb,
Novo Nordisk, Merck, Sanofi and Biogen could all be considered candidates.
the consumer electronics and technology sector: Apple's revenues continue to
grow across all its geographic regions. Google, Microsoft, IBM are also viable
candidates. Asia represents both Microchip Technologies' largest and fastest
growing market. Asia represents the bulk of Novellus System's revenue generation.
China, the USA and Europe are Samsung Electronics' three largest markets.
the mining sector: BHP Billiton has one of the strongest balance sheets in the
sector, is a dividend aristocrat and is globally diversified. Rio Tinto also
possesses an admirable portfolio of resources in the ground and is equally well
oriented to the global economy.
the industrial gases sector: Praxair, Air Liquide and Linde share an oligarchy
on supply. Linde has the greatest exposure to Asia's growth markets.
the oil & gas sector: Exxon Mobil is a US dividend aristocrat and has a
presence in almost every country. Royal Dutch Shell has a high dividend and
is also globally present. Both companies now produce more gas than oil.
The above represent some initial thoughts on what may qualify as Autonomies. I believe this should be a collaborative effort and if subscribers think of potential additions we can have a discussion about which companies should and should not qualify.Back to top