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Buy what China wants… I’m buying Potash (POT) because my guess is: China wants food! December 6, 2010

Posted by deminvest in POT, Potash.
Tags: , ,
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Potash mine

Potash mine

This is how I ended up on Potash (POT):

  1. At first I looked at tractors. John Deere looked like a nice bet. They just raised their dividends and it yields nice
  2. Then I did wonder… do Chinese want John Deere Tractors? Not only I found out they don’t. I even discovered many American farmers are turning to Jimna Chinese junk. Jimna tractors are less expensive. I see John Deer in some potential competition trouble. I also fond out John Dere has debts equal to a yer worth of sales. So I decided to loo further.
  3. As I usually do  when I want to invest in a certain industry, I looked how ETFs are composed. I found MOO Agriculture ETF. P0tash (POT) is their first holding, second is John Deere. Potash composes 10% of MOO ETF.
  4. I was on the right track. Potash is mined into the Earth and put into fertilizers. Chinese can manufacture just about anything, but they can’t dig mines in Canada.
  5. Potash is a bit expensive (P/E= , but growing fast. I’m jumping into that wagon!

Here is my order, executed on infamous Etrade:

Executed Buy 10 POT Mkt Day 12/06/10 02:19:05 PM EST 10.00 143.83 19.99

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