Land Bank 2.0

I’ve talked extensively about owning raw land as a potential inflationary hedge. Should we go Weimar 2.0 owning assets that bureaucrats cannot print will outperform. Two assets that fit this bill are raw land and gold.

I’ve talked extensively about owning physical gold and raw land. Physical gold as a tail-hedge should our trusty fiat currency go bottoms up oblivion. Raw land for the optionality of producing food, extracting income or developing any higher and better purpose.

Physical land is difficult to acquire in large tracts in the private market — unless you have a large amount of cash ready to deploy. For this reason I have chosen to own raw land through publicly traded companies.

One company I own, that owns excess land, recently reported their Q1 2023 results. The stock is trading near a multi-year low and there is potential the company could sell their non-revenue producing land for 50% of their entire market cap over the next 12-18 months as their core operations recover.

The management team is highly incentivized to generate a large amount of free cash flow as their bonus program is based on a higher share price. I love investing in asset heavy companies with non-core hidden assets that management is actively looking to sell. It is the perfect catalyst for a higher share price.

Hope you guys enjoy this article. It is a long-term play and one of my favorite ideas right now. Enjoy!