When I think of superior long-term investing in todays world and the world for the next few generations, I think of one word and two themes. The word is CHINA, and the themes are FOOD and FUEL. It is inevitable that China with a population of 1.3 billion will, as it continues on its path of economic growth and development, become the biggest economy that history has ever witnessed, and that prosperity and growth will create an increased demand for both food and fuel. So, who will the biggest winners be as this phenomenon unfolds? The food theme will favor countries with vast and productive lands suited to growing cereals; notably, the United States, Canada, Argentina, Brazil, and Ukraine. The fuel theme will favor countries with huge natural gas reserves; notably Russia, Iran, and Qatar. The smart investor should seek opportunities to either invest directly or indirectly in instruments that touch on the aforementioned industries in the countries mentioned. My favorite candidate? Any opportunity to participate in the development of Iran’s portion of the South Pars Gas Field.
