Press Esc to close

Welcome to Money Morning - Only the News You Can Profit From.

Close

How "Minuteman" Warren Buffett is Leading America's New "War of Independence"

In our Aug. 11 Private Briefing report What Does This “Mysterious Signal” Tell Us About CB&I? we said we suspected that super-investor Warren Buffett would use the sell-off in Chicago Bridge & Iron NV (NYSE: CBI) to boost his stake in the this Netherlands-based infrastructure specialist.

And that’s just what happened…

  • Featured Story

    Investing in Farmland: Is a Bubble Brewing?

    Food corn

    It's little wonder that yield-starved pension funds and other investors are investing in farmland.

    That's because farmland, a hard asset, produces high returns and, unlike other hard assets such as precious metals, provides investors annual income from crop sales.

    The National Council of Real Estate Investment Fiduciaries (NCREIF) compiles data on the total returns (income and capital gains) on farmland purchased for investment purchases, primarily by pension funds looking for income and diversification.

    In 2012, the annualized total return on investment farmland was 18.58%.

    The NCREIF has data going back to 1992. Since then, the highest annualized total return was 33.90% in 2005 while the lowest annualized total return was 2.02% in 2001. Over the 20-year period from 1992 to 2012, the average annual total return was 11.83%.

    And sharply higher prices for major agricultural commodities such as corn, wheat and soybeans have increased annual investment income for anyone investing in farmland.

    Legendary hedge fund manager Jim Rogers has been buying farmland in Australia for a private fund.

    "It's the farmers, the producers, who are going to be in the captain's seat when the prices go through the roof," he told The Australian Financial Review back in 2011.

    "The world has got a serious food problem," Rogers told Time magazine. "The only real way to solve it is to draw more people back to agriculture."

    But is this rush toward investing in farmland now creating a huge bubble?

    To continue reading, please click here...


    Read More...
  • investing in farmland

  • Why Jim Rogers is Investing in Farmland Legendary Wall Street trader and best-selling author Jim Rogers recently offered this unconventional advice: If you want to get rich, you should be investing in farmland.

    Don't laugh. Rogers is good at what he does. Really good.

    Together with George Soros, he founded the Quantum Fund in the 1970s and posted returns of 4,200% over 10 years. Rogers retired in 1980 at the age of 37, but is still active as a private investor.

    Back in 1999, Jim Rogers recommended gold when it was trading at $252 and silver at $4. You know what happened after that.

    Now Rogers thinks investing in farmland will pay off in a big way.

    "It's the farmers, the producers, who are going to be in the captain's seat when the prices go through the roof," he told The Australian Financial Review.

    To continue reading, please click here... Read More...
  • Investing in Farmland: How to Turn Healthy Profits From the Heartland If Mark Twain was talking about investing in farmland when he suggested "buy land - they're not making anymore," then he knew more about finance than he's credited with.

    The Federal Reserve Bank of Chicago just reported that prime farmland prices in the heart of the U.S. grain belt (Indiana, Illinois, Iowa, Michigan and Wisconsin) - were up 17% in the second quarter compared to 2010, the biggest year-over-year increase since 1977.

    That's on top of a 12% jump for all of 2010, the second-largest yearly increase in the past 30 years.

    In fact, farmland value since 2000 has appreciated by more than 1,200%, according to the National Council of Real Estate Investment Fiduciaries (NCREIF), and netted nice profits for farmland investors.

    Just look at the NCREIF's Farmland Returns Index, which measures the quarterly performance of a large pool of individual agricultural properties acquired in the private market for investment purposes.

    The index has posted some incredible quarterly gains over the past decade - most notably 22.78% and 14.63% in the fourth quarters of 2005 and 2004, respectively.

    Farmland gains for the first two quarters of 2011 were recently reported at 2.40% and 1.48%.

    What's more, negative quarterly returns for farmland are extremely rare. Only once since 1992 has the NCREIF Index fallen period-over-period, and that came in the fourth quarter of 2001 amid post-9/11 economic turmoil.

    Given the large value gains since 2000, a lot of potential has been realized, but there's plenty of room for future profit.

    "It's not the first inning of the game," Shonda Warner, managing partner at Chess Ag Full Harvest Partners, told CNBC, "but it's not the eighth inning either."

    To continue reading, please click here...

    Read More...