Replies to post #113663 on Biotech Values

[DewDiligence]

Commodities themselves may be in a bubble, but I don’t think the share prices of MON and DE are in a bubble. To the contrary, I think they are experiencing the early stages of what will be at least a decade of robust growth.

Note that MON’s sales and profits are only loosely related to the prices of agricultural commodities. DE’s sales and profits have a somewhat stronger correlation to commodity prices, but momentum-chasing investors overemphasize the connection.

Once that busts and bust it will, do you know of any other asset class left for CBs to inflate?

I think the best plan for those with a longer horizon is to invest with The Global Demographic Tailwind and not worry unduly about the next “crisis.” People have to eat, which bodes well for such ag companies as MON and DE no matter what else happens.