“Do not put all your eggs in one basket.” – Warren Buffet
We have all heard the phrase “Do not put all your eggs in one basket”. Author Miguel Cervantes is generally considered to be the first person to immortalise the phrase into written word in his classic 1605 novel Don Quixote. It’s a piece of advice applicable to all walks of life. Meaning that one should not concentrate all efforts and resources in one area as one could lose everything.
A recent conversation I shared with Ramy Kamaneh, founder and CEO of SDT Holdings. (Wuhan General Group Inc. ($WUHN) etched the phrase into my mind. While forging his vision for STD Holdings, Ramy drew inspiration from corporations like PepsiCo ($PEP). Formed in 1965, PepsiCo, known primarily for its flagship beverage Pepsi-Cola, has diversified its portfolio in the intervening years by acquiring strategic food and beverage brands including Tropicana Juices, Quaker Oats and Gatorade. Last year it was named the second largest food and beverage company in the world.
The driver of growth and stability of PepsiCo has been its diversified business interests. Instead of putting all of their eggs in the Pepsi-Cola basket, which is still a massively successful product on its own, PepsiCo transitioned into a food, snack and beverage corporation with a long and varied list of products serving numerous markets and demographics.
This concept is nothing new to investors. One of the most important principles of investing is ensuring you have a diversified portfolio. Such investing minimises the risk of loss, preserves capital and does not rely upon a single source of income. It’s a concept that Ramy and his team at SDT have taken very seriously and implemented successfully.
SDT Holdings is an industrial technology holding company with a strong sustainability vision. It serves the transport, mining, agricultural, industrial and earth moving industries through its four subsidiaries, each specialising in a unique sector, but all serving an overarching vision of producing pollution-reducing technologies that provide sustainable economic growth in environmentally responsible ways. The four subsidiaries are:
- SDMT – Strategic Development of Mining Technology.
- A leading consultancy in the electrification of underground hard rock mining industry.
- SDBT – Strategic Development of Blockchain Technology.
- Develops industrial blockchain technologies & focuses on the construction of large-scale crypto currency mining farms.
- SDET – Strategic Development of Electrification Technology.
- Concentrates on R & D, prototyping and piloting of industrial batteries. Also produces battery cells designed for heavy-duty industrial equipment.
- SDIT – Strategic Development of Internet Of Things (IoT) Technology.
- Focused on the engineering and implementation of IoT hardware for AI, data acquisition and machine learning for industrial markets.
SDT has grown steadily since inception, strategically acquiring companies and investments to develop into the robust holding company it has become. It is however, the vision and future planning that has investors and analysts excited.
More acquisitions are planned, to add to an impressive ten-year plan that includes developing state-of-the-art battery technology for heavy-duty industrial vehicles to replace the fossil fuel powered equipment in industries such as mining.
With that being said, perhaps this is one occasion where putting all your eggs in the one basket could be considered a wise investment.
We really like this company and will dive more in-depth into SDT in our full report that you can expect within the coming few weeks.
As of August 28, 2018:
- Stock Symbol: OTC: WUHN
- Current Price: OTC: 0.18 (USD)
- Shares Outstanding: 80M
- Latest PR: Wuhan General Group intent to cancel two-thirds of its outstanding common shares in 2018 – Read here
David & the Team
P.S Check out a recently released animation from SDT.