Skip to main content
Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0
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
Print the post  

Announcements

What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.