Hi Grommit -
Followed you in on a starter position of Bunge Limited (BG). You are not the only one bullish on commodities, check out what Jim Rogers thinks on the subject when interviewed in Singapore yesterday.
An Exclusive Interview With Jim Rogers
By Brett Owens Apr 28, 2011 3:00 pm
minyanville.com
From the article:"...Agriculture is still his favorite, thanks to supply constraints that are nowhere close to being solved – including a lack of farmers.
“The average farmer in the United States is 57 years old,” Rogers shared (providing me with yet another “how the heck did he know that offhand?” moment).
“Who’s going to farm the land 10 years from now? These guys will be 67…if they’re still around. And nobody is graduating with farming degrees today.”
“There are just not enough farmers in the world. There are vast stretches of empty land in Japan, believe it or not – with nobody to farm them.”
>He thinks this commodity bull market could continue to rock and roll for some time because “little or no supply has come on line yet.” He points out that the commodity sector was starting to attract attention pre-2008, as its bull run began around 1999, but the 2008 financial crisis knocked a lot of potential new supply offline. Which of course sets the stage for further price increases...."
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Wasn't Michael Bury also bullish on U.S. farmland?
My investment theme for the year ahead is to find companies that have businesses that are food related; specifically the production, processing and distribution of food products. This also includes the value added businesses in the supply chain that own the natural resource (ie land), mine & distribute fertilizers, have emerging technologies (genetic seed patents) and design and build efficient precessing and manufacturing equipment (necessary to feed the masses). I expect the rising demand for food to come from the BRIC countries especially China and their insatiable desire for protein.
Bunge Limited (BG) should be a good core holding to put in my commodity AG basket.
These are the companies currently in my AG basket of stocks: finance.yahoo.com
My AG basket of stocks should complement my E&P, Oil & NG related companies too especially if the $US continues lower.
EKS |
