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How significant of a role does local politics factor into your analysis?

This flows from the gretat question earlier about what we look for in markets.

I consider it a great deal. For example, our Watchlist company from this last month. Cresud, I think is dirt cheap. (Funny allegory for a land company). I just don't trust the Argentine government's ability to manage its fiscal affairs, debasing company operations in the process.

I do not shy away from political turmoil, even corruption. But in each situation, the company has to be trading cheaply enough to compensate us for the extra risk. I don't think that markets like Venezuela, though, offer attractive investing possibilities, because of the potential for nationalization of industries.

Bill Mann
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