Some friends of mine and I have made a lot of money following the advice of Casey Research for several years now.
No wonder I am so excited to introduce you to their latest offering, Without Borders.
Here is a little intro piece that I think you will enjoy!
Books & Babes in Buenos Aires
By Fitzroy McLean, Co-Editor,
Argentina has a lot going for it these days, not the
least of all a renewed interest in free market ideas and entrepreneurship. And
as Fitzroy McLean, our editor-in-perpetual-motion, proved during his visit to
Buenos Aires, if you keep your eyes and ears open, there’s a lot to learn from
people on the street.
Fitz here. Taking a quick break during the latest of a
series of fact-finding trips to Buenos Aires, a very civilized city.
I’m writing from my coveted spot at a sidewalk café in the
city’s fashionable Recoleta district. I wasn’t planning to stop and whip out my
laptop but (a), there are a lot of really elegant women in summer dresses walking
by. Pretending to pensively look above the screen of my MacBook while deep in
thought is good cover for what really is just unabashed gawking. And (b), I wanted
to jot down notes from a very interesting conversation I just had with the
proprietor of Distal Libros, the international book store tucked into a
busy corner of the Recoleta.
I went into Distal Libros to buy an English language
copy of Louis Romero’s seminal book The History of Argentina in the
Twentieth Century. Imagine my surprise, therefore, when I saw the staff
stocking six shelves full of Robert Kiyosaki’s Rich Dad Poor Dad series
in both English and Spanish.
Normally, I’m not a fan of self-help books or personal
finance books dumbed down for mass consumption. Even so, while I won’t go so
far as to say I’m a fan of the Rich Dad series, I’ll happily endorse Kiyosaki’s
premise that wealth is created by starting and running businesses, by actively
investing in operating companies and productive real estate. That, opposed to being
an employee and trying to build wealth by saving or by eventually selling your personal
residence at a profit.
Whatever you might think of them, Kiyosaki’s books
undoubtedly champion self-reliance and entrepreneurship and I certainly like
that. But six shelves full? I had to ask.
I must have inadvertently communicated my curiosity via ESP
(then again, maybe it was my slack-jawed look of disbelief.) However it
happened, the proprietor approached and asked, “Senor, may I help you with
anything?”
“Yes,” I replied, “do you have a copy of Romero’s The
History… no wait, are these books really that popular?” I stammered,
pointing to the purple paperbacks. He smiled. “Yes Senor. We sold out in August
and it took us until now to get them in again.” To underscore the point, he
retrieved a clipboard from behind the counter. “This is the order list for the
Spanish version,” he said, pointing to a list of about forty names. “And this
is for the English version,” he added, leafing through an even longer list.
Warming to the topic, he added, “Interestingly, many on the
English list have the book in Spanish but also want to read it in English
because they don’t trust the translation.”
“Why is it so popular?” I asked.
He gave a cute little chuckle before responding with a
question of his own.
“Have you read it, Senor? You should. It is about being
responsible for yourself, not relying on the government or anyone else for your
well-being. It also teaches you about building a business. But you are born
with that, because you are from the U.S. Yes?”
Okay, so he recognized me for the gringo I am. But there’s a
certain truth to what he said. In the U.S. we are raised with certain
expectations. Sure, more fail to meet those expectations, but most yanks have,
at one point or another, at least dreamed about starting their own business.
That’s a big advantage over the populations of the earth who are raised with an
almost serf-like attitude about their future.
Anyhow, I found this unexpected and entirely unscientific
survey of one to be quite encouraging because we’ve been bullish on Argentina
for some time now. We’ve liked it for its lifestyle, reasonably priced real
estate and the underlying strength of the country’s commodity-based economy.
But this was an unexpected surprise because the fly in the ointment for
Argentina in modern times has always been a distinct tendency to shift toward
destructive socialist policies, given the slightest opening to do so.
Quick sell-outs of do-it-yourself books on capitalism are a
definite step in the right direction.
One of the points my Without Borders co-editor Simon Black and I like to stress – and the reason
for our constant travels — is that, in order to get a visceral sense of a
country and its future, you need to get into the street. Sure, there is much to
be learned from research reports and bankers, but sometimes you can get a less skewed
perspective from bartenders in brothels… or bankers in brothels after spending
too much time with the bartenders.
The Recent Election
With a little encouragement, my new bookseller friend went
on to talk about last week’s elections the result of which is that the First
Lady and current Argentine Senator, Cristina Kirchner, was elected as the next
president of Argentina.
This victory by the center left Peronist party candidate is
seen locally as an endorsement of her husband’s policies which were credited –
right or wrong — with helping the country recover from the crisis of 2001 when
Argentina defaulted on over 80 billion dollars in loans. According to my new bibliophile
buddy, the election bodes well for the economy and opportunities for entrepreneurs
and, more specifically, women entrepreneurs. He also thinks it will bode well
for the Buenos Aires stock exchange.
“Just watch, people are just now ready to start investing in
our own markets. In fact, investing books are some of my best sellers, at least
to locals. Tourists mostly buy picture books.”
For those looking to diversify their money and their lives,
the bookseller may be right. Based on our many visits to the country, we think
there are still abundant opportunities to earn above-market returns in
Argentina.
That’s because, while Cristina Kirchner’s impact on the
economy is yet to be determined (her hubby had odd ideas like capping energy
prices, causing an energy shortage… surprise, surprise), the elections are
important in that they give the country another four, and maybe eight, years of
some form of political consistency.
But How to Act?
While there are a number of interesting Argentine
conglomerates that trade via ADRs on U.S. exchanges, there is a closed-end fund
that we are now doing our due diligence on that looks to be an excellent proxy
play on Argentina, Inc. Taking a broader-basket approach such as that may be
the best approach.
Even real estate, which we were buying for pennies on the
dollar a few years ago, and which has appreciated measurably since, still offers
an excellent value when compared to the bubble-like prices on offer in most of
the world.
Another way to play it may be by looking to invest in
neighboring Uruguay. Following our noses there, in a few days’ time Simon and I
will be meeting up in Punta del Este. This “San Tropez of South America” is
known for its super models and sandy beaches, but the country is also known for
its friendly business climate and a private banking sector that does good
business helping Argentines find a home away from home for their money.
With all the commodity wealth being created in Argentina, as
well as in other parts of South America, we think Uruguay is destined to do
very, very well for the foreseeable future.
As per our usual boots-on-the-ground approach, we’ll be
meeting with real estate agents and bankers as well as a couple of lawyers who
specialize in helping foreigners navigate the issues of investing.
Because we are looking for not only the best places for our subscribers
to invest, but also the best places to have a second home or just enjoy their time,
I’m thinking of devising a new economic indicator that the global-minded should
have in the top right-hand corner of their computer screen.
It is to be called the Elegance Quotient (or EQ, for
the cognoscenti). Very simply, the EQ will be calculated by taking the elegance
factor of the place (somewhat subjective, to be sure) and dividing it by a
weighted average basket of the goods and services that you most enjoy.
So, naturally London and Paris, Barcelona, Singapore,
Shanghai, San Tropez and Hong Kong will all have impressive numerators, but
they will also have depressing denominators… namely the high cost of pretty
much everything.
My basket will include a bottle of good wine, a custom suit,
a steak dinner, a gym membership, a cross-town taxi ride, a night in a five-star
hotel, a hand-rolled cigar and a maid’s monthly salary.
Based on those inputs, Buenos Aires and Punta Del Este will
rank right at the top of the index.
Fitzroy McLean is a co-editor of Without Borders, the spirited and highly profitable new monthly advisory servicefrom Casey Research. A former military man turned spy, Fitz eventually came tohis senses, trading in his cloak and dagger for a briefcase and a degree from Oxford, then set out to use his unique skills as a successful fund manager and full-time international entrepreneur. Fitz and co-editor Simon Black, another former intelligence operative, are on a nearly non-stop quest around the world looking for the best places to easily diversify internationally (and, in the process, enjoy the best life has to offer). There’s no other newsletter quite like it. But don’t take our word for it: a
3-month trial subscription with 100% money-back guarantee allows you to experience
Without Borders for yourself at no risk. Learn more by clicking here now.
Click on the above link to find out more about this great new publication from Casey Research.
You will be glad you did.
