I personally don't think that AB1 is a good long term investment. That does not mean it can't be a great short term investment. At the end of the day, we are all just trying to make return on our investment. Some folks care about long term returns while others care more about short term returns and while some are indifferent so long as they make a return on their investment.
I don't think I should have to convince anybody of the appropriateness of my opinion. What I can do is share with you the latest annual report of a Swedish video gaming company: THQ Nordic. I believe anybody looking at investing in a video gaming company should read this annual report from the front cover to the back cover as a means of educating themselves on the industry and on what it takes to become a successful video gaming company. For the sake of our conversation, I will recommend that you read pages 9 through 11 which provide an overview of the video gaming industry. What I found particularly instructive is the way they went about describing the mobile video gaming industry:
"MOBILE GAMES FOR CASUAL GAMERS
In contrast to PC and console games, the mobile segment is largely made up of casual games.
This type of game can usually be developed in a much shorter time and with considerably fewer resources than hardcore games within the PC and console segment. The
entry barriers to this segment are thus lower than in the PC and console segment.
Mobile games are by nature less advanced and not as engaging as PC and console games. Partly as a result of this,
life cycles for mobile games are often shorter and the number of mobile game developers that have succeeded in repeating their success is relatively limited."
Please find below a snapshot of the financial performance of THQ Nordic over the past 4 years. It's nothing short of spectacular and that is the reason why when they speak, I listen very carefully. In other words, their track record supports their rhetoric. They can teach a thing or two not only to companies wanting to succeed in the video gaming industry but also to investors.
View attachment 1184157
For the sake of full disclosure, I own shares of THQ Nordic. The post above should in no way be looked at as an invitation to invest in THQ Nordic which happens to be a foreign listed company. Investing in foreign listed companies can be highly risky due to foreign currency risk, market liquidity risk, regulatory risk, and political risk.
