Making a good case of why Diaspora Armenians
need to invest in the motherland now.
TIME IS OF THE ESSENCE
TABLE OF CONTENTS
MINIMUM INVESTMENT (Classes of Shares)
BOARD OF DIRECTOR CANDIDATES (Suggested)
AIF SHORT and LONG-TERM MISSION
RISK and REWARD FOR ARMENIA
AMENIA OPPORTUNITIES WITH GREAT POTENTIAL
Including But Not Limited To:
- Export of Smoked Fish Industry
- Export of Sun Dried Tomatoes, Pastes & Products
- IT, Big Data, AI & High Technology Related Operations
- Solar & Alternative Energies
AIF MISSION SHORT and LONG TERM
PRESERVATION: Preservation of Investors Capital
NEW JOBS: Well Paying Jobs Creation in Armenia & Artsakh
HIGHER INCOME: Seek Higher Than Bank Interest & Usual Financial Instruments Income Present at Any Given Time in USA or Europe (Founder Belief at the Present / Near Zero Returns)
SELECTIVE INVESTMENTS: In IT & All Areas of Disruptive New Technologies: i.e., Robotics, Solar, and 3D Printing, Biotech / Advanced agricultural systems. Possible to Garner Double Digit Returns in Most Areas of Business in Armenia.
RISK and REWARD for the MOTHERLAND
INVESTMENT: Like anywhere else in the world and any time, investments of any kind anywhere have risks.
GLOBAL ECONOMY and RETURNS: The most recent 2008 Global Economic crises is a perfect example of the fact that no investment, anywhere in the world can be guaranteed to have yearly steady returns forever.
Armenia therefore is no exception.
However for Diaspora Armenians there are a few unique facts to consider:
- Zero and negative interest rates most banks now offer in Europe and USA and hardly any real returns on most mutual funds or institutional investments due to global slow down and depressionary factors.
- Investing a small part of their assets, (like 5% of yearly income) the Diaspora Armenians not only could diversify and potentially increase their overall annual returns on their investments and future growth potential. But will help create thousands of well-paying jobs in Armenia preventing at least some from leaving the Motherland to earn a living abroad.
- Given the top European and US Banks exposure to hundreds of trillions of dollars to very toxic and dangerous financial instruments called derivatives (Warren Buffet called “the financial weapons of mass destruction”). Having ones portion of assets invested in different currency than dollar or euro may be a wise decision and action to take. In the 2008 crises 10 million homes were foreclosed in America that is roughly one out of every six American home owner losing their home.
- While considering the fact Armenia has one of the most educated, highest cultural and social standards in the world today.
- While part of Europe and Japan already have negative interest rates on bank deposits; a trend possibly to continue and expand to UAS and other countries for the foreseeable future.
- And while ideally it would have been healthier to have 6%-8% Bank interest rates in Armenia, even with high rates of around 12%-18% majority of small medium and large businesses are able to service their debt and still show reasonable and in cases very good profits. Another important fact to note is the fact that Armenia’s currency; the DRAM, has held up way better (fluctuated only 10%-15% in the last 10 years) than its two neighboring countries Russia and Iran; which their currencies have lost half or more of their value in the last few years. Even though both countries have tremendous amounts of natural resources and several hundred or thousand times more GDP. The unfortunate fact that lots of people are leaving the Motherland has created a temporary supply and demand of real estate and assets where one can acquire them at deep discount in most cases.
VALUE INVESTING FOR MANY BUSINESS SUCCESS STORIES IN ARMENIA PLEASE CHECK Vazrick Makarian on YouTube
However this temporary phenomenon has been noticed by smart investors from all over the world and many individuals, groups and governments are very active Value Investors making serious investments in Agricultural and Commercial Land, More importantly alongside North South Highway M-1 connecting Asia to Europe in Armenia, Green Houses, new Factories, IT Import-Export, etc.
CURRENT EXAMPLES THAT HAVE GREAT POTENTIAL
1.SMOKED FISH INDUSTRY Hardly High Any Commercial Size Operations Exist Involved in Large production of Smoked Fish. While So Many High Quality Fisheries Exist in Armenia; with thousands of high quality variety of wild Smoked Fish can be exported yearly.
2. SUNDRIED TOMATOES, TOMATO PASTE & PRODUCTS While Armenian farmers, small & large have been increasing their yearly growing of good mostly organic tomatoes. In & outside of green houses. There is hardly any large co4mmercially viable & efficient plants that produce a large volume (Good for Export) of quality organic sun dried tomatoes & related products.
3. IT & HIGH TECH AND RELATED OPERATIONS There are many such operations doing large scale outsourcing to Europe & USA. While the IT segment in Armenia has been growing in a very healthy way; there is room for more & more valuable services to Europe & USA.
4. SOLAR AND ALTERNATIVE ENERGIES According to Dr. Peter Gevorkian; one of the top experts in solar Technologies in the world, who had a 3 day Solar Symposium at AAU (American Armenian University) in late September 2016.
Dr. Gevorkian pointed out Armenia is one of the best suited places (considering many factors like mean yearly temperature, humidity, sunny days, etc.) While Dr. Gevorkian has a great idea & plan to establish a master’s degree program teaching state of the art solar technology in Armenia.
Many areas of solar & wind & other alternative energy production methods can be easily explored implemented producing many Parts used in solar, wind & other alternative energy production. Not only those various parts will be used in Armenia & Artsakh but also be available for export to nearby Countries. Since Armenia does not have a significant natural resources, becoming a Cutting Edge Solar, Wind & Alternative producing Hub or Center would be a huge help in employment & the Country’s GDP for many years to come.
Based on present GDP of Armenia of just over $10 Billion, and about 1.5 M people employed the following is a possibility; If diaspora Armenians were to invest say 5% of their yearly income estimating total Armenian’s yearly income to be roughly $75 billion.
That is about average of $25,000 per estimated 3M number of households worldwide. 5% of $75 billion is $3.75 billion yearly investment in Armenia say we cut that in half that is $1.875 billion which could generate about 280k new jobs.
Funds invested initially while searching to locate good investments could be deposited in one of the many good performing banks and earn about 12%-14% or AIF could offer private lending for even lower like 10%-12% which would help the small business borrowers debt service payments even more affordable. 5 AIF could be set up more like any HEDGE FUND in USA or Europe.
Risk of fluctuation of currency
Armenian DRAM compared to most countries during the last 12 years has been one of the most stable and least fluctuating.
On average DRAM fluctuated between 5%-20%.
British Sterling pound has had up or down 40%
– Australian Dollar: 55% drop
– Canadian Dollar: 31% drop
– Chilean Peso: 30% drop
– Colombian Peso: 45% drop
– Singapore Dollar: 14% drop
– South African Rand: 56% drop
– and more…
Iran’s RIAL has lost 80% of its value during the last 12 years, a country with huge natural resources, some of which are number three and four in the world.
US dollar lost 50% of its value during early 1970 s dollar devaluation.
Armenia with such small economy and hardly any significant natural resources to have such relative stable currency is just AMAZING and shows, in spite of all challenges, DRAM continues to be a very stable and resilient currency.
Diaspora Armenians and any investor who chooses to invest in properly managed operations in Armenia in the next several years will probably have a better overall return on their investments than in Europe or USA, given the existing economic statistics and trends.
Therefore, a small portion of one’s investment funds in Armenia could create a healthy balance in one’s investment portfolio.