| Why is Bill Gates, the 4th richest person on the planet with $125 Billion of wealth, buying Farmland?
Well, he is now the largest private farmland owner in the US.
By 2050 the world would need 26% more cropland. An area the size of India and Germany combined.
Super-Crops
Gate’s hefty investment in American farmland may also be tied to his interests in developing super crops.
Super-crops are genetically modified seeds, crops and livestock to maximize as much yield as possible.
For example, seeds are being genetically designed to grow in near non-arable and hostile soil conditions.
(Seeds are a big area for investors to look into).
A side note on this emerging trend of buying Farmland – Jeff Bezos is 25th biggest farmland owner and owns about 420,000 acres of it.
Bill Gates and Jeff Bezos are not the only ones.
Warren Buffett also owns small amounts of Farmland. He has often said, an investment should in an asset that can produce something.
Conclusion: The BIG conclusion, is that the:
1- The world’s population is fast increasing.
2- Farmland is finite.
3- Climate change is causing significant disruption to agri supplies.
Answer – Well, own some Agri stocks. The best ones.
Sumitomo seems to be the best bet but unfortunately, TOO EXPENSIVE.
(Maybe a good idea to put it on the watchlist for now).
Another fascinating side note:
Like most ‘big’ winners, Sumitomo was in the past, a special situation when it acquired Excel Crop Care and reversed merged.
A lot of value and wealth was made in this ‘promoter change – special situation’.
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My Investment Notes 