Interesting article

[BRG]

Advice from a billionaire: invest in ag
Hembree Brandon
Oct. 25, 2010 5:00amRSSComments 2 PrintSaveEmail Share

"Agriculture, in my view, is one of the best places to be in the next 30 years. All these people getting MBAs are making terrible mistakes as far as I'm concerned — they should be getting farming degrees."

That pearl of advice is from Jim Rogers, the Demopolis, Ala., native who began his business career selling peanuts at age 5, and went on to become a billionaire as a founding partner with legendary financier George Soros in Quantum Fund, one of the most successful international funds ever, which racked up a 4,200 percent gain over 10 years.

"Over the next few years, I think agricultural projects are going to be one of the best investments and agriculture is going to be one of the best industries in the world," he said in a recent interview on Bloomberg/UTV.

Rogers, who attended Yale and Oxford Universities, and recalls that when he went to Wall Street at the invitation of a friend, "I didn't know the difference between a stock and a bond," retired at the ripe old age of 37. He then spent a couple of years traveling around the world on a custom-built motorcycle, visiting 116 countries and setting a Guinness world record, and scouting out new investment opportunities.

Two of his favorite maxims are: "Get out of the dollar, teach your children Chinese, and buy as many commodities as you can," and "They wouldn't be politicians if they knew what they were doing."

Still considered one of the most astute investment analysts around, Rogers speaks and lectures widely and turns up on the TV business channels frequently. He usually doesn't miss an opportunity to get in a plug for agriculture.

"We're going to have much, much higher prices over the next few years," he said in a CNBC interview, noting that prices for agricultural commodities have been too low for too long.

"Anybody who's got potentially good agriculture land and good weather" stands to be a winner, Rogers says.

In another interview, he noted "the number of acres devoted to wheat has been declining for 30 years and inventory levels of food are the lowest since 1972."

Corn and wheat are 60 percent below their peak prices, he says, "and adjusted for inflation, they're at only about 5 percent of their peak prices. God knows how high the price of agriculture is going to go, so that's where I'm putting more of my money now."

While he remains bullish on gold and precious metals, despite record prices, he avers, "I'm going to make more money in agriculture than I make in precious metals."

Rogers isn't alone; a number of highly respected investment analysts are keen on the future of agriculture.

Even the Federal Reserve's Beige Book survey of current economic conditions recently highlighted strength in U.S. agricultural markets, citing continued expansion of demand for ag products, helped along by shortages in overseas nations.

http://westernfarmpress.com/equipment/advice-billionaire-invest-ag?cid=nl_wfpd

 

[Bward]

With everything else going sky high in the last 30 years, like vehicles, dental work, housing, utilities, tuition, I am amazed that I can buy a head of lettuce that has come 3000 miles and still only pay a buck. A bag of prime apples for 2 bucks and bananas from a tropical country for next to nothing.

 

[per]

With everything else going sky high in the last 30 years, like vehicles, dental work, housing, utilities, tuition, I am amazed that I can buy a head of lettuce that has come 3000 miles and still only pay a buck. A bag of prime apples for 2 bucks and bananas from a tropical country for next to nothing.

Yet locally grown fruit like Saskatoons are a fortune.

 

[Kato]

For instance, look at a car, and the price rise in it. Every person in the chain from the salesman to the dealer, manufacturer, assembly worker, steel mill, and miner has REFUSED to accept a situation where their income didn't rise with the cost of living.

Now, look at agriculture. Have retailers, truckers, processors, the people who write the advertising, their lawyers, delivery people, the lunch lady in the factory, or the kid bagging groceries accepted a situation where their income didn't rise with the cost of living? No.

Who has accepted, or been forced to accept :? an income that DID NOT rise with the cost of living?

That would be the people who grow the raw material, the meat, grain, vegetables, etc.... That would be us. :shock: And not just in North America either, it's true around the world. Can you imagine just how hard someone is working, and how little they are earning to grow produce that can be shipped thousands of miles and still sell for less than a buck?

Something's gotta give here. Wouldn't it be wonderful to live in a world where people put a higher priority on the meals on their table than they did on that new car every second year, or that vacation on a sandy beach every winter that so many have come to consider a right rather than a privilege?

 

[Northern Rancher]

I guess if you could finance groceries with no money down and an automatic debit we might see some changes-maybe we need to be more creative in ways we haven't thought of yet to pry more profit for the producer.

 

[VB RANCH]

Something's gotta give here. Wouldn't it be wonderful to live in a world where people put a higher priority on the meals on their table than they did on that new car every second year, or that vacation on a sandy beach every winter that so many have come to consider a right rather than a privilege? There are a hell of alot more countries in this old world that the people dont even own a car much less a new one, or even know what a vacation is, then are. food in them countries IS #1, the good old USA aint hungry and as long a free trade goes on they won't be

 

[Anonymous]

Advice from a billionaire: invest in ag

Rogers has been saying this for about 3 years now-- and is investing heavily in Agriculture - and China (where he moved to) ...
3 years ago I watched him on Auzzie TV predict the worldwide price of wheat would hit $10 that year- and possibly $15... I don't think it made $15- but it did get to $10....

 

[Northern Rancher]

Are the primary ag producers any better off where a larger % of income is spent on food-it seems that in those countries it's a struggle just to exist and nobody is better off. Other than a famine I can't see the populace of North America changing their mindset to where a need{food} trumps their discretionary spending. I doubt people will pay what we deem our product to be worth unless they are forced too and I don't anybody really wants to take a walk down that path. I wish I knew the answer to the woes of agriculture. Inheriting Dad's money and zealously underspending it seems to be the best recipe for success.

 

[balestabber]

can i assume mr rogers is an invester and not a producer.or he followed some ag-related manufacture-s to china.i know some big boys here that were driving caddilacs and are now driving volvos.