Eduardo Elsztain

Eduardo Elsztain

Postby winston » Wed Aug 26, 2009 8:31 pm

One Legend's Secret to Beating the Government By Dr. Steve Sjuggerud

In the private boardroom of the New York Stock Exchange, Eduardo Elsztain explained his strategy to a small group of investors...

I was there last week with Eduardo, sitting in the NYSE's impressive boardroom. (I was 10 feet from a priceless Faberge urn... Over 100 years ago, Russia gave it to the exchange as thanks for a $1 billion bond issue. Russia ended up defaulting on those bonds. Years later, the Russians asked for the urn back. The Wall Streeters said, "You'll get your urn back when we get our money back!" So the urn is still there.)

Eduardo was ringing the opening bell to commemorate a recent business deal, and I came along.

In my career, I've been fortunate to meet many extraordinary investors. Eduardo is one of my favorites. He has survived and prospered through more government-debt pileups and busts than any big investor I'm aware of. You see, Eduardo has lived his life in Argentina, which has a history of wiping out investors time and again.

Eduardo's firsthand knowledge of how to invest through an inflationary time is important right now... The U.S. government is inflating our money at an unprecedented, off-the-charts rate. Nobody is more experienced than Eduardo at profiting from this situation.

And right now, Eduardo is getting aggressive...

U.S. commercial real estate is the classic kind of crisis that attracts Eduardo's attention. So Eduardo came here looking for acquisitions and partnerships in commercial real estate. That's why he was in New York: He was commemorating his strategic investment in a U.S. real estate company.

From May of last year to March of this year, shares of this hotel operator fell roughly 90% from peak to trough. The market wasn't punishing this company in particular. Investors have sold everything related to real estate.

Eduardo knows hotels... He has owned world-class hotels through his Argentina commercial real estate company (called IRSA) for a dozen years. So he stepped up to the plate and bought 11%, with the right to own up to 20%.

Here's the thing: This company has five times as much debt as stock market value. Those debts aren't coming due for three years or more. But most people see those numbers and get scared off. Knowing Eduardo, though, I believe he's making a bet that:

1) The stock is underpriced. People have sold everything related to commercial real estate.

2) The hotel market is getting "less bad." Investing when things are getting less bad is what I've called The Secret to 1,000% Returns.

3) Most importantly, Eduardo expects inflation will arrive. That will push asset values higher in dollar terms and reduce the true cost of the company's debt.

It's a bold strategy: buying a stake in a highly indebted company while we're still in difficult financial times. But Eduardo has been through many crises... and many government inflations. He has conviction.

Eduardo is investing his money in a way that will "beat" the government at its own game. Sounds smart to me. If you're bold... and you believe the three things above... then you should consider investing like Eduardo, too.
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118528
Joined: Wed May 07, 2008 9:28 am

Re: Eduardo Elsztain

Postby iam802 » Wed Aug 26, 2009 8:36 pm

is he saying that because of inflation, the assets (hotels , properties etc) are worth much more...while the USD is going to be less..hence the debt is reduced?
1. Always wait for the setup. NO SETUP; NO TRADE

2. The trend will END but I don't know WHEN.

TA and Options stuffs on InvestIdeas:
The Ichimoku Thread | Option Strategies Thread | Japanese Candlesticks Thread
User avatar
iam802
Big Boss
 
Posts: 6353
Joined: Wed May 07, 2008 1:14 am

Re: Eduardo Elsztain

Postby winston » Wed Dec 07, 2011 7:14 am

The Best Crisis Investor I Know Is Buying THIS Right Now By Dr. Steve Sjuggerud
Monday, December 5, 2011

"The best transactions are done when everybody stops and is paralyzed," Eduardo Elsztain said in an interview at the New York Stock Exchange this week.

Eduardo is the best crisis investor I know…

Eduardo prefers to buy "real assets" which he defines as farmland, real estate, and gold. And he prefers to buy them when markets have frozen up with fear… like now.

These days, Eduardo is "Seeking Opportunities in Europe As Property Prices Plunge" according to a Bloomberg article this week.

And I have seen Eduardo acquire "trophy" properties – properties as fine as you can get anywhere on the globe – at fantastic discounts.

"When you see a crash, people are reluctant to sell an apartment at half the price," he explained. "But you can see shares of very good assets selling at a 60 percent discount" in the stock market.

Over the last two years, he's been brilliantly investing in U.S. real estate through the financial markets. But his bread and butter for decades has been investing in real assets in South America…

"Here in Argentina, we know the end result of money-printing," Eduardo told me one day in his office in Buenos Aires.

After facing inflation from money-printing so many times in Argentina, Eduardo's family had learned the lesson. He said, "I remember my grandfather telling me, 'The only way I measure my savings at the end of each year is: one more hectare of land, one more cow.'"

Eduardo has never forgotten his grandfather's lesson…

Today, he controls over 2 million acres of land, through his company Cresud (CRESY). Cresud produces food – soy, corn, wheat, milk, meat, and more – from its lands. In addition, Cresud owns a portfolio of world-class commercial real estate primarily in South America, through its stake in IRSA (IRS).

Eduardo is a larger than life character with a clear vision. When he looks ahead, his biggest concerns are
1) money-printing in the U.S. and Europe and
2) food shortages as emerging markets grow and become wealthier.

("We will need twice the grain in 2050 that we need today," he says.)

Eduardo is emphatic that "gold and farmland are the best assets to be exposed to today."

And based on what he owns, he's put his money where his mouth is.

Check out shares of Eduardo Elsztain's Cresud today. And if you're bold, follow in his footsteps and look for opportunity in crisis… in Europe… where he's looking to buy right now.

http://www.bloomberg.com/news/2011-11-2 ... -says.html

Source: Daily Wealth
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118528
Joined: Wed May 07, 2008 9:28 am


Return to Market Gurus

Who is online

Users browsing this forum: No registered users and 6 guests

cron