Note from Louis Basenese: I’m on the road today, traveling to our corporate headquarters in Baltimore. But don’t despair. We’re keeping the compelling and actionable investment commentary coming! Today Dr. Steve Sjuggerud, Editor of Daily Wealth, shares a unique way to profit from two crises we’ve talked about here before – the debt contagion in Europe and the unfolding global food shortage. In crisis lies opportunity. Don’t miss it!
“The best transactions are done when everybody stops and is paralyzed,” Eduardo Elsztain said in an interview at the New York Stock Exchange this week.
Eduardo is the best crisis investor I know…
Eduardo prefers to buy “real assets” which he defines as farmland, real estate and gold. And he prefers to buy them when markets have frozen up with fear… like now.
These days, Eduardo is “Seeking Opportunities in Europe As Property Prices Plunge” according to a Bloomberg article this week.
And I have seen Eduardo acquire “trophy” properties – properties as fine as you can get anywhere on the globe – at fantastic discounts.
“When you see a crash, people are reluctant to sell an apartment at half the price,” he explained. “But you can see shares of very good assets selling at a 60% discount” in the stock market.
Over the last two years, he’s been brilliantly investing in U.S. real estate through the financial markets. But his bread and butter for decades has been investing in real assets in South America…
“Here in Argentina, we know the end result of money-printing,” Eduardo told me one day in his office in Buenos Aires.
After facing inflation from money-printing so many times in Argentina, Eduardo’s family had learned the lesson. He said, “I remember my grandfather telling me, ‘The only way I measure my savings at the end of each year is: One more hectare of land, one more cow.'”
Eduardo has never forgotten his grandfather’s lesson…
Today, he controls over two million acres of land, through his company Cresud (CRESY). Cresud produces food – soy, corn, wheat, milk, meat and more – from its lands. In addition, Cresud owns a portfolio of world-class commercial real estate primarily in South America, through its stake in IRSA (IRS).
Eduardo is a larger than life character with a clear vision. When he looks ahead, his biggest concerns are 1) money-printing in the United States and Europe, and 2) food shortages as emerging markets grow and become wealthier. (“We will need twice the grain in 2050 that we need today,” he says.)
Eduardo is emphatic that “gold and farmland are the best assets to be exposed to today.”
And based on what he owns, he’s put his money where his mouth is.
Check out shares of Eduardo Elsztain’s Cresud today. And if you’re bold, follow in his footsteps and look for opportunity in crisis… in Europe… where he’s looking to buy right now.