As I've gotten older, one of the things I really feel I
have learned is that investors ought to demand rich rewards for
complexity and risk. Simply put, there are a lot of ways to make a buck
out there, and if you're being asked to put up with a lot, there should
be commensurate excess returns.
With that, I struggle to be more positive on Argentina's IRSA (NYSE:IRS).
I'm not worried anymore that the company's ventures into Israel are
going to kill the company through a debt overdose, but I do worry about a
potential squandering of shareholder resources and a diversion of
management attention away from more profitable traditional pursuits.
These shares could be undervalued, and I likewise believe that an
ongoing recovery in Argentina and a potential realization of value from
the landbank could drive even more value, but honestly... it just looks
like too much of a hassle to be worth the risk.
Continue reading here:
IRSA Has Some Value And Argentine Leverage, But A Lot Of Headaches Too
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