It is about Mr Burry who we all remember from the 2015 hollywood film The Big Short , talking about his new investments and how valuable is agricultural land with water.
Burry explains in the video that the real value in water trading is the food that holds it. Fruit and other foods that grow in water-rich areas can be easily transported, while water is very dificult to move around.
If you are thinking about investing in bottled water companies, or buying land where the water comes from, you are off-base.
Mr Burry admits that he very nearly invested in water sometime ago, but the idea later appeared to him as irrational.
He says “Fundamentally, I started looking at investments in water about 15 years ago. Fresh, clean water cannot be taken for granted. And it is not — water is political, and litigious. Transporting water is impractical for both political and physical reasons, so buying up water rights did not make a lot of sense to me, unless I was pursuing a greater fool theory of investment — which was not my intention”.
Mr Burry further adds “What became clear to me is that food is the way to invest in water. That is, grow food in water-rich areas and transport it for sale in water-poor areas. This is the method for redistributing water that is least contentious, and ultimately it can be profitable, which will ensure that this redistribution is sustainable. A bottle of wine takes over 400 bottles of water to produce — the water embedded in food is what I found interesting.”
Burry also touched on gold, land, real estate and other similar markets that have direct influence on our daily lives.
If you have not read The Big Short, I highly recomment reading the book.
For more details watch the Bloomberg interview with Michael Burry here.
This is a republished and modified article. Here is the original article .