Lessons In Fiat Reality: "Why I Learned To Trade Less And Love The Farm"

Tyler Durden's picture

Stephen Diggle is one of the least well known (except to his clients) and yet most successful hedge fund managers over the past decade - having made around two-and-a-half billion dollars during the financial crisis - but in the last few years, he came to a dramatic (and we hope enlightening for many) perspective. This fascinating presentation, in his own words, discusses "how , having made that fortune trading, [he] came to conclude that [he] wanted to preserve the real value of that fiat money windfall, [he] had to get away from trading and buy, own, and operate real assets with real cashflows." - most specifically farms. From being ridiculed as a 'Cassandra' in the mid to late 2000s, Stephen's conviction then that the world was heading for a crisis was as high as his conviction now that in order to ride the wave of global central bank intervention and the implicit macro-economic waves that will crash on every shore in the forthcoming years, that farmland (preferably diversified) is the best risk-reward 'trade' in the coming decade. An intriguing tale of reality and un-greed and everything you need to know about agriculture (from demand to demographics and from fiat-debauchment to interventionist policies) but never knew to ask. An inspiring and insightful brief presentation that offers more depth than any Jim Rogers' mini-clip on CNBC.

 

Inflationary concerns...

 

and macro drivers...

 

The 'real' price of land (in USD)...

 

and in Oz of Gold...

 

Probably the most famous proponent currently of investing in farmland is Jim Rogers, who remains among the most prescient of investors; unfortunately he is offered neither the time or space to detail this view among the mainstream media. We hope Stephen's presentation provides all the color needed to comprehend this global macro view.

 

 

(h/t Grant Williams)