THESIS :
Our investment phylosophy is deeply rooted in our belief that the economies of China and India have begun the irreversible and rapid technological development trajectories from third world to first world that nations such as Chile, Japan, South Korea and Taiwan have followed in the past. The world as we know it is thus changing rapidly, in ways which have no historical precedent. Other economies have progressed through this rapid growth phase, but the key difference this time is that the populations of India and China taken together exceed 40% of the population on the planet. As economic prosperity rises in these nations, this will translate directly into large boosts in historical consumption levels for goods and services globally.
The US has had the privilege of producing and consuming in excess of 25% of global GDP for decades, with less than 5% of the global population. This calculus is now rapidly being upset by the confluence of technological innovation, rapidly declining telecommunications costs and demographic shifts in population age groups. Roughly 50% of the populations of India and China are under 25 years of age. The youth of the planet now resides in Asia, and is voraciously adopting the capitalist model that has been the engine of growth for all developed nations.
One very clear outcome of this new world order is that there will be a staggering amount of incremental natural resources required to simply bring the rest of the world up to the developed worlds current levels of consumption. Whether it is oil, natural gas, water, platinum, copper, bauxite, coffee, coal or wheat demand has exploded seemingly overnight, and the supplies of these commodities are, in most cases, not readily expandable.
At Tano Capital we seek to uncover innovative alternative investment opportunities which we believe will capitalize on these macro trends.