If you haven’t seen the movie The Big Short, I highly recommend it. Consider it a homework assignment.
Not only is it very entertaining, but the story shows us exactly how the 2008 financial crisis unfolded.
The movie requires you to concentrate, and if you’re not somewhat financially aware, you may want to pause the movie a couple times to look up terms you don’t understand.(It’s now available on Netflix, so you can watch the movie at your own speed.)
I promise you that it’s worth your time to watch this movie – it’ll make you think. It’ll make your blood boil. And it’ll show you exactly how to profit in the next downturn; if you really pay attention.
Without giving away too much if you haven’t seen it, I want to highlight the end of the movie where the main character, Michael Burry, tells us where he’s looking for his next investment.
Water.
That’s what he’s focused on.
In a recent interview with NY Magazine, Michael Burry explains:
“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. 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.””
Farmland hunting in Colombia.
Michael Burry is an interesting guy, and there is no denying his intelligence and market savviness. He is telling us exactly what he thinks is the next great investment.
Now, there are many ways to invest in what he is telling us. Farmland, food companies, food transportation, etc. Really, we could probably find hundreds of methods.
This is something that I have written about before. You can read it here. I will provide much more information about this in the future.
However, I don’t want to talk about investing in water.
I want to point out this obvious investment. We are basically getting spoon-fed this opportunity. But I guarantee that very, very few people will actually pursue investing in water.
Why?
Because hardly anyone is doing it – hardly anyone is investing in water.
It’s human nature to want to stick together in a pack. It’s scary to do something different.
Like I’ve said many, many times… that is exactly why you will never find great opportunities if you don’t go out and explore different ideas.
Tomorrow I’m going to share with you the exact investment that the worlds most famous (and richest) investors are doing right now. And anyone can pursue this, whether you live in America or India or England or Australia… and you don’t even need to buy stocks, real estate or anything crazy expensive.