E Sunday File And Double Dutch

If Moustapha, Jonathan, and Vito are not convincing enough, you may also listen to Reshma Kapadia in the Barron's "cover story" on How to Invest Globally, Now, and her source, Brian Lloyd of Harding Loevner International Fund. He cites RDS as being less at risk from US-China trade tensions than global companies like auto-makers. She paraphrases his reasons why Shell is "less vulnerable to a petro swoon". "Not only is it the world's largest fuel retailer, but it also has a strong position in lubrifants and liquified natural gas." Moreover "at 11.5x earnings," Brian says, it's reasonably priced.

Her article also tipped Tsingtao Brewery of Hong Kong which I already talked about last week as Heineken did a complex deal to sell more suds in China. I think the Chinese will switch from a 150-year old local brew to premium exotic beers from Belgium's Anhaeuser-Busch Ambev (BUD ).

A Dutch relic from the past hit Sunday on seekingalpha.com, by "The Investment Doctor". I normally ignore anonymous contributors but this one wrote about Wereldhave, the Dutch-based Euroland REIT we owned decades ago, WRDEF. We owned it as long as it met US rules for pass-through real estate funds. But then the SEC decided that since WRDEF bought and sold its own shares in Amsterdam to keep the trading price close to the net asset value, this was no longer a legal holding for US investors. So we sold, although we still own non-US REITs from Singapore and Mexico which do meet SEC conditions. Since then a mechanism for adjusting prices for exchange-traded funds came into effect in the US as well but Wereldhave is not an ETF.

Dividend doctor doesn't seem to be aware of the overhang on US shareholders collecting the current Wereldhave yield of 8% after the yield was chopped 30% early this year. But he worries about Dutch regulations which may change the status of REITs and force Wereldhave to relist in next-door Belgium and get rid of its Dutch properties which account for about 40% of NAV.

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