Grantham: Welcome to Dystopia!

Jeremy Grantham, head of GMO Investment group who is always a must read, had an extensive article published on Morningstar.  The article address a major investment theme of both Grantham and GMO, as well as DWCM which is the long-term growth thesis and upcoming global food crisis.

Those of you who read Grantham's quarterly newsletter are probably already familiar with his firms belief that we will see a major food shortage in the world in the upcoming decades.  The fact that individual countries will do what is in their best interest will only amplify this upcoming crisis.

Although nothing typically goes up in a straight line, we believe that fertilizers, seed companies, and equipment manufacturers in the agriculture sector will likely benefit tremendously from the ever growing need to produce more food.  Changing weather conditions whether you believe in global warming or not will only help to deteriorate the supply base while the demand grows.

Although the piece is somewhat long it is fully worth the read and time to understand this one viewpoint surrounding the global food issue.

Full disclosure as part of the DWCM agriculture strategy we own the following stocks:

• Potash, Mosaic, and Monsanto

Article here

• We are five years into a severe global food crisis that is very unlikely to go away. It will threaten poor countries with increased malnutrition and starvation and even collapse. Resource squabbles and waves of food-induced migration will threaten global stability and global growth. This threat is badly underestimated by almost everybody and all institutions with the possible exception of some military establishments.