James West: So for example I’m a shareholder in a phosphate company that’s going into production in Brazil very soon – DuSolo Fertilizers – is that the kind of thing where an investor could benefit by exposure to the fertilizer business in Brazil, where consumption is growing?
Jim Rogers: Yes, yes. That’s exactly what I’m talking about. Now I have no idea whether your company is competent, if they know what they’re doing or anything else. But if they do, and if they do have a good deposit, and they are low-cost producers, yes! They’ll do extremely well, there’s no question about that.
James West: Brazil is in particular number three, and number one, and number two in so many agricultural exports, and I know that they import, on average, about 65 percent of their fertilizers, so do you think there’s an advantage for investors who are investing in the countries where they are consuming the fertilizers?
Jim Rogers: Well of course. If you can produce it where it’s consumed, you have many, many advantages. All other things being equal. I mean, if you’re incompetent and don’t know how to run a mine, well then it won’t matter. It might be cheaper to put it on a boat somewhere and send it a few thousand miles. It depends on who’s doing what and the quality of the reserves, etc. But everything else being equal – yes. If they can produce and if they can produce at a competitive price, it is certainly a lot better to have the production right there in the country. And Brazil is going to continue to be an agricultural country.
Jim Rogers started trading the stock market with $600 in 1968.In 1973 he formed the Quantum Fund with the legendary investor George Soros before retiring, a multi millionaire at the age of 37. Rogers and Soros helped steer the fund to a miraculous 4,200% return over the 10 year span of the fund while the S&P 500 returned just 47%.
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