Fisher Investments on Telecom

DAN SINTON is a Research Analyst at Fisher Investments. Prior to joining Fisher, he worked at Franklin Templeton and Charles Schwab and in the nonprofit sector. Dan received a BA in international affairs at the University of Colorado and an MBA from Georgetown University. He currently lives in San Francisco, California.ANDREW S. TEUFEL has been with Fisher Investments since 1995 where he currently serves as a Vice Chairman. Prior to joining Fisher Investments, he worked at Bear Stearns as a corporate finance analyst in its Global Technology Group. Andrew also instructs at many seminars and educational workshops throughout the United States and United Kingdom, and has lectured at the Haas School of Business at UC Berkeley. He is also Editor in Chief of MarketMinder.com. Andrew is a graduate of UC Berkeley.

• Foreword ixPreface xiiiAcknowledgments xviiPart I Getting Started in Telecom 1Chapter 1 Telecom Basics 3Telecom 101 4A Defensive Sector 5Inelastic Demand 11A Capital Intensive Sector 12Regulation 14Chapter 2 A Brief History of the Telecom Industry 19The Early Years 19Recent History 24Chapter 3 Telecom Sector Composition 31Global Industry Classification Standard (GICS) 31Global Telecom Benchmarks 32Industry Breakdown 38Same, Same, but Different 41Part II Next Steps: Telecom Details 43Chapter 4 Telecom Sector Drivers 45Economic Drivers 46Political Drivers 51Sentiment Drivers 56Chapter 5 Consumer Demand 61Emerging Markets 61Developed Markets 66Chapter 6 Challenges and Opportunities 71Wireline 72Wireless 78Advertising & Publishing 82Part III Thinking Like a Portfolio Manager 85Chapter 7 The Top-Down Method 87Investing Is a Science 87Einstein’s Brain and the Stock Market 89The Top-Down Method 90Top-Down Deconstructed 96Managing Against a Telecommunications Benchmark 103Chapter 8 Security Analysis 107Make Your Selection 108A Five-Step Process 109Telecom Analysis 117Chapter 9 Telecom Investing Strategies 123Strategy 1: Adding Value at the Sector Level 124Strategy 2: Adding Value at the Country or Industry Level 125Strategy 3: Adding Value at the Security Level 126Appendix: Additional Resources 129Notes 137Glossary 141About the Authors 151Index 153