Submitted by QTR's Fringe Finance
One of my favorite investors that I love reading and following, Harris Kupperman, has offered up his thoughts on one country that he believes could be poised for investing success.
Harris is the founder of Praetorian Capital, a hedge fund focused on using macro trends to guide stock selection. Mr. Kupperman is also the chief adventurer at Adventures in Capitalism, a website that details his investments and travels.
Harris is one of my favorite follows and I find his opinions - especially on macro and commodities - to be extremely resourceful. I’m certain my readers will find the same. I was excited when he offered up his latest thoughts, published below.
Please be sure to read both my and Harris’ disclaimers, located at the bottom of this post.
Kuppy originally spoke about this one country back in October 2021 and he writes now that he thinks “the time has now come to load up”.
This post originally appeared in KEDM on June 4, 2023.
“We originally spoke about Argentina back in October of 2021 and said to put it on your radar. We think the time has now come to load up.”
Let this serve as a reminder of the perils before you…
Let’s start with the obligatory note that we love Argentina; friendly people, beautiful countryside, great wine. We’ve been there a few times and are fans. More importantly, it’s always been stunningly cheap to visit. Doug Casey famously says that “Argentina is the cheapest civilized place on earth,” and we agree. Given the current (persistent) currency crisis, we assume that it’s even cheaper to visit today. However, this isn’t a tourist guide. The listed securities are also cheap, unusually cheap, stunningly cheap. Why are they so cheap?? Well, that should be obvious, the country is bankrupt, the currency is effectively worthless, they owe money to every global acronym, and the economy is in shambles. Fortunately, most of this is fixable. There’s Western infrastructure everywhere, the roads are paved, things actually (sorta) work. The problem is simple; for the past century, the Argentines have chosen insane people to run their country. That’s it. That’s the whole issue. The government is the problem. Fix the government and you fix the country.
Of course, having tasted the wonders of socialism, the Argentines have been slow to abandon it. However, once you hit rock bottom, literally rock f*ckin’ bottom, things start to change. There’s an election this October, let’s look at the latest polling numbers.
Since there’s roughly zero likelihood that...(READ THIS FULL LETTER HERE).
