Porterian

This is my personal blog. Travel, financial and political observations. Notes to myself and my friends. Content development for my monthly newsletter, Porter Stansberry's Investment Advisory (www.stansberryresearch.com).

Thursday, March 09, 2006

SMART GUYS BUY ARGENTINA

Lots of “smarter” money seems to be heading into Argentina.

Some of the smartest guys I know – Doug Casey (caseyresearch.com) and Bill Bonner (dailyreckoning.com) have been buying up thousands and thousands of acres of ranch land in northwest Argentina.

It’s difficult for most investors to invest in Argentina this way. Are you going to spend $20 million dollars buying up dozens of individual ranches, some of which are more than 100,000 acres in size? I doubt it.

But, there’s a publicly traded company, Cresud (CRESY) that owns million of acres in the same area, plus a big stake in IRSA (NYSE: IRS), which owns top office properties in Buenos Aires. My friend Steve Sjuggerud, editor of our True Wealth newsletter recommended Cresud a few years ago, based on the value of its land holdings and on the savvy of its CEO, Eduardo Elzstain. Elzstain has good relations with many of New York cities top financiers – Soros was once his partner. I’ve met Elzstain. Steve and I had lunch with him in BA two years ago and we took a group of subscribers with us. Eduardo would meet with us – but not with any of Wall Street’s analysts – because we wanted to talk to him right after the crash when Wall Street wouldn’t return his calls.

It pays to build relationships

I’ve been researching Leucadia (LUK) – billionaire investor Joseph Steinberg’s investment vehicle -- for an upcoming sales letter about the world’s best investment holding companies.

Turns out great minds think alike about Argentina…

Leucadia recently became a top holder of Cresud. A Leucadia subsidiary, Nead, bought a bunch of Cresud warrants, some of which were sold back to Elzstain, but some of which were held and will convert into stock – more than 17% of all Cresud shares outstanding.

Here’s a link to Leucadia’s SEC filing about the position:

http://yahoo.brand.edgar-online.com/fetchFilingFrameset.aspx?FilingID=4232790&Type=HTML

0 Comments:

Post a Comment

Links to this post:

Create a Link

<< Home