In this book, Jared Diamond explains why Eurasian and North African civilizations have survived and conquered others. He argues that differences in societal development arise primarily from geographical causes. The book details how agricultural societies developed immunities to deadly diseases, advanced in technology, and formed centralized political structures, ultimately leading to the conquest of other societies. Diamond also discusses the impact of germs, domesticated animals, and environmental factors on human history[2][4][5].
Daron Acemoglu and James Robinson argue that the success or failure of nations is determined by their political and economic institutions. They present a comprehensive theory based on 15 years of research, using historical examples from the Roman Empire, the Mayan city-states, the Soviet Union, and various other regions to demonstrate how inclusive institutions foster economic growth and prosperity, while extractive institutions lead to poverty and stagnation. The authors discuss critical questions such as China's economic growth, the future of the United States, and the most effective ways to help countries move from poverty to prosperity[1][4][5].
In this book, Niall Ferguson argues that Western civilization's rise to global dominance was driven by six powerful new concepts, or 'killer applications,' that emerged in the fifteenth century. These include competition, science, the rule of law, modern medicine, consumerism, and the work ethic. Ferguson explains how these factors allowed the West to surge past its Eastern rivals and dominate the world for the past five centuries. However, he also discusses how the Rest have now adopted these 'killer apps,' while the West has lost faith in itself. The book chronicles the rise and fall of empires and the clashes and fusions of civilizations, offering a bold and insightful recasting of world history.
My guest today is Manny Stotz, the founder of Kingsway Capital. Manny is one of the leading investors in Frontier Markets, investing in equities in countries like Egypt, Bangladesh, and Pakistan. We discuss the opportunity in these markets from all angles: demographics, valuations, sectors and beyond. It is important to note that we recorded this conversation before COVID, and these markets have fallen 30% without a similar rebound in prices that we’ve seen in the U.S. As you listen you’ll hear why this may be relevant for the companies Manny focuses on and may accentuate the opportunity in Frontier Markets even relative to the numbers quoted in this conversation. Listeners will know my interest in Frontier Markets runs deep, so I was excited to have one of the categories leading investors join me.
Please enjoy my conversation with Manny Stotz.
This episode is brought to by Koyfin.
For more episodes go to InvestorFieldGuide.com/podcast.
Sign up for the book club, where you’ll get a full investor curriculum and then 3-4 suggestions every month at InvestorFieldGuide.com/bookclub.
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Show Notes
2:07 – (First question) – How Kingsway was conceived, their focus on frontier emerging markets, and his career path
11:57 – What are the best company builders good at when it comes to fostering a brand
18:30 – How country-specific factors impact the tailwind
25:43 – How markets are faring in these special circumstances
32:09 – Building a book in many of the markets they trade-in
37:10 – Understanding your edge in frontier markets, showing up
39:59 – Importance of solid distribution for the companies he invests in
42:12 – Concentration in various markets
44:10 – Moving beyond consumer brands in these markets
47:14 – Some of the most interesting countries they are looking into and the country business model
47:42 – Guns, Germs, and Steel: The Fates of Human Societies
47:44 – Civilization: The West and the Rest
47:46 – Why Nations Fail: The Origins of Power, Prosperity, and Poverty
53:21 – New topics he’s excited to learn about that will impact his business over the next 10-20 years
55:37 – Best way for people to get involved and invest in these markets
58:17 – Kindest thing anyone has done for him
Learn More
For more episodes go to InvestorFieldGuide.com/podcast.
Sign up for the book club, where you’ll get a full investor curriculum and then 3-4 suggestions every month at InvestorFieldGuide.com/bookclub
Follow Patrick on Twitter at @patrick_oshag
Invest Like the Best with Patrick O'Shaughnessy 
