With so many stocks out there for investors to choose
from, I have never believed that investors are obligated to put up with
confusing, complicated, or unfavorable situations just to generate a
little extra return. That point has really been driven home at Cresud (NASDAQ:CRESY) in recent months, as investors have grown concerned about the relationship between Cresud's majority-owned IRSA (NYSE:IRS) and Israeli holding company IDB Holding (OTC:IDBZF) (IDBD.TA).
Given that IDB's debt is non-recourse to IRSA and/or
Cresud, I'm not worried about IDB "ruining" CRESY, but I am concerned
that management is stretching itself far and wide and really becoming
much more of a diversified holding company. I suppose that's fine if
that's what you want to invest in, but as a vehicle for investing in
Argentina (and particularly Argentina's farmland), I'm not sure Cresud
really fits the bill for me anymore.
Read the full article here:
Cresud And The Cost Of Complexity
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