Wednesday, October 24, 2012

Investing in agribusiness

Renowned investor Jim Rogers was quoted saying that farmers will soon be driving Lamborghinis and that high school students now should seriously consider a career in agriculture. I don't know about the Lamborghini part but he does have a point. With the global population tipped to grow a another 2 billion and rising Asian middle class wanting more meat in their diet, there seems to be a lot of upside to investing in agriculture. For an overseas Filipino such as myself, the easiest exposure to agriculture would be to invest in agribusiness stocks. This would include Agrinurture Inc., Universal Robina Corp. and Roxas Holdings. Second would be to buy an existing farm and be a passive owner of an agribusiness venture. As with all other investments, a careful study is required to manage risks. Agriculture in the Philippines is still largely underdeveloped and would require a massive injection of capital. For those who do it right, the returns may be worth it. Happy investing!

4 comments:

  1. Yeah, farmers in Lamborghinis might be overselling it :D

    But yeah,the human population would need much more food if we keep expanding like we have. Plus the Philippines is about to enter a demographic where there are more young, money-earning (and spending) people than too old or too young to work.

    Anything consumer related - specially food - should be a good buy.

    Thanks for sharing this!

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    1. Thank you for visiting and yes, the Philippines has an ideal demographic that will bode well for consumer related investments.

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  2. Thanks, to post. I think, investment in agribusiness is great choice. Every business has required a hard work to successful. So you required a careful research is to handle the challenges. Today, the improvement in agribusiness is well. Agriculture Market Report

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  3. I think Jim Rogers is dead on about the ag business. I like the stock of bunge symbol {BG} NYSE stock exchange. This is a huge diverse ag business company with operations all over the world. The stocks still really cheap. Valuation wise that is it currently trades around 70 to 75 dollars a share. The company is headquartered outside the United States.

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