05 October 2011

UKRAINE : Betting On The Farm Cost Morgan Stanley...Big...in 2009.

BLOOMBERG/ A. Katz, P. Robison
Bloomberg Markets Magazine

     A long but fascinating read...on how Morgan Stanley strayed from traditional banking to buy 11 parcels of rich farmland in the Ukraine in 2006...to try and capitalize on predictions of a growing food shortage.
    But it sold the land in 2009...at a big loss...after its hired hands found locals stealing fertilizer, insecticide and harvested wheat too.
    The American (right) in charge also fought with tax, immigration, fire and police inspector and officials who even wanted him to build roads, not just till fields.
    Concludes the reporters: "Morgan Stanley’s misadventure in Ukraine points up risks for current-day investors lured by statistics that may seem to paint agriculture as a no-brainer."