India An Emerging Market for the Long-term

The Stern family has a long history of investing in emerging markets. In the 1870s the family began its heavy involvement in the biggest emerging market of its day − the United States. The physical size of the US was enormous and the growth opportunities unprecedented. Development of the economy required huge investment in infrastructure. Through an American partner, Henry Villard (born Ferdinand Heinrich Hilgard in Germany), one of the pioneers of the US railways, in 1872 the Frankfurt bank of Jacob S. H. Stern bought bonds of the Wisconsin Central Railway, now part of Canadian National Railroad. Later they financed the Oregon Railway and Navigation Company and made money from the receivership of the Kansas and Pacific Railway. Both Oregon and Kansas are now part of Union Pacific Railroad, an investment the family holds to this day.

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