http://robertgirga.com/RobertGirga/investing-in-colombia-iii-the-cafetero/
Investing In Colombia III The Cafetero
When one considers investing in Latin America and investing in Colombia in particular the famous words of Baron Rothschild come to mind. This 18th century investor and banker is credited with saying that “The time to buy [stocks] is when there is blood in the streets.” He was talking about 18th century wars and rebellions but his words are pertinent in the New World today. Specifically, Colombia is coming out of a half century long rebellion and many investors have not yet caught on. This is the third of a four part series about Investing in Colombia. We will deal briefly with the history of the Colombian Civil War and then look at investment opportunities in the coffee heartland of Colombia.
The Colombian Civil War
The current Colombian civil war has lasted from the mid 1960’s to the present. Rebels say they are fighting for the rights of the Colombian poor. The primary rebel group is FARC (Fuerzas Armadas Revolucionarias de Colombia). The rebels primarily have occupied remote areas of the jungle, especially in the Amazon Basin with occasional forrays into the cities. An increasingly aggressive campaign by the Colombian government has driven FARC from the cities and forced them to cross borders into Venezuela, Ecuador, and Panama in search of sanctuary. Despite the claim that FARC simply wants to improve the lot of poor Colombians they have been tied to drug trafficking. Many Colombian families can name a member of two who were assassinated by FARC for opposing extortion efforts by the rebels. On the other hand government allied paramilitary forces fighting FARC are also accused of drug trafficking and terrorism. The good news is that the conflict is settling down and Colombian Peace Talks have begun. The time has come for investing in Colombia.
The Best Coffee in the World
The Cafetero is the coffee growing region in Colombia. It lies to the West of the Andes and includes the cities of Pereira, Armenia, Manizales, and Medellín. The region comprises only a little over one percent of Colombia and just over two million people. Colombia is the third leading exporter of coffee in the world. It is the second leading exporter of Arabica coffee, generally considered to the best coffee. Most coffee lovers also consider that Colombian coffee, sip per sip, is better than Arabica coffee from Brazil, the world’s leading exporter by bulk. Because of coffee production this region has reasonable economic strength but it is certainly not an industrial region. On the other hand cities like Pereira at 3000 feet are in the Latin American “land of eternal spring.” That is to say, the temperature never drops below about 60 degrees Fahrenheit at night and rarely above 85 degrees during the day.
Ride the Storm: Navigating Through Unstable Periods / Katerina Rudko (Belka G...
Investing In Colombia III The Cafetero
1. Investing in Colombia
III - The Cafetero
http://robertgirga.com/RobertGirga/investing-in-
colombia-iii-the-cafetero/
2. • When one considers investing in Latin America
and investing in Colombia in particular the
famous words of Baron Rothschild come to
mind.
http://robertgirga.com/RobertGirga/investing-in-colombia-iii-the-cafetero/
3. • This 18th century investor and banker is credited
with saying that “The time to buy [stocks] is
when there is blood in the streets.
http://robertgirga.com/RobertGirga/investing-in-colombia-iii-the-cafetero/
4. • .” He was talking about 18th century wars and
rebellions but his words are pertinent in the
New World today.
http://robertgirga.com/RobertGirga/investing-in-colombia-iii-the-cafetero/
5. • Specifically, Colombia is coming out of a half
century long rebellion and many investors have
not yet caught on.
http://robertgirga.com/RobertGirga/investing-in-colombia-iii-the-cafetero/
6. • This is the third of a four part series about
Investing in Colombia.
http://robertgirga.com/RobertGirga/investing-in-colombia-iii-the-cafetero/
7. • We will deal briefly with the history of the
Colombian Civil War and then look at
investment opportunities in the coffee
heartland of Colombia.
http://robertgirga.com/RobertGirga/investing-in-colombia-iii-the-cafetero/
8. The Colombian Civil War
• The current Colombian civil war has lasted from
the mid 1960’s to the present. Rebels say they
are fighting for the rights of the Colombian poor.
http://robertgirga.com/RobertGirga/investing-in-colombia-iii-the-cafetero/
9. • The primary rebel group is FARC (Fuerzas
Armadas Revolucionarias de Colombia).
http://robertgirga.com/RobertGirga/investing-in-colombia-iii-the-cafetero/
10. • The rebels primarily have occupied remote areas
of the jungle, especially in the Amazon Basin
with occasional forrays into the cities.
http://robertgirga.com/RobertGirga/investing-in-colombia-iii-the-cafetero/
11. • An increasingly aggressive campaign by the
Colombian government has driven FARC from the
cities and forced them to cross borders into
Venezuela, Ecuador, and Panama in search of
sanctuary.
http://robertgirga.com/RobertGirga/investing-in-colombia-iii-the-cafetero/
12. • Despite the claim that FARC simply wants to
improve the lot of poor Colombians they have
been tied to drug trafficking.
http://robertgirga.com/RobertGirga/investing-in-colombia-iii-the-cafetero/
13. • Many Colombian families can name a member
of two who were assassinated by FARC for
opposing extortion efforts by the rebels.
http://robertgirga.com/RobertGirga/investing-in-colombia-iii-the-cafetero/
14. • On the other hand government allied
paramilitary forces fighting FARC are also
accused of drug trafficking and terrorism.
http://robertgirga.com/RobertGirga/investing-in-colombia-iii-the-cafetero/
15. • The good news is that the conflict is settling
down and Colombian Peace Talks have begun.
The time has come for investing in Colombia.
http://robertgirga.com/RobertGirga/investing-in-colombia-iii-the-cafetero/
16. The Best Coffee in the World
• The Cafetero is the coffee growing region in
Colombia. It lies to the West of the Andes and
includes the cities of Pereira, Armenia,
Manizales, and Medellín.
http://robertgirga.com/RobertGirga/investing-in-colombia-iii-the-cafetero/
17. • The region comprises only a little over one
percent of Colombia and just over two million
people.
http://robertgirga.com/RobertGirga/investing-in-colombia-iii-the-cafetero/
18. • Colombia is the third leading exporter of coffee
in the world. It is the second leading exporter of
Arabica coffee, generally considered to the best
coffee.
http://robertgirga.com/RobertGirga/investing-in-colombia-iii-the-cafetero/
19. • Most coffee lovers also consider that Colombian
coffee, sip per sip, is better than Arabica coffee
from Brazil, the world’s leading exporter by bulk.
http://robertgirga.com/RobertGirga/investing-in-colombia-iii-the-cafetero/
20. • Because of coffee production this region has
reasonable economic strength but it is certainly
not an industrial region.
http://robertgirga.com/RobertGirga/investing-in-colombia-iii-the-cafetero/
21. • On the other hand cities like Pereira at 3000 feet
are in the Latin American “land of eternal spring.
http://robertgirga.com/RobertGirga/investing-in-colombia-iii-the-cafetero/
22. • .” That is to say, the temperature never drops
below about 60 degrees Fahrenheit at night and
rarely above 85 degrees during the day.
http://robertgirga.com/RobertGirga/investing-in-colombia-iii-the-cafetero/
23. • This is an increasingly attractive area for tourists
to places like the hot springs at Santa Rosa, the
still active volcano, Nevada Ruiz, outside of
Manizales, or the park region of Ibague.
http://robertgirga.com/RobertGirga/investing-in-colombia-iii-the-cafetero/
24. • For those considering retirement in Colombia
this is a nice region.
http://robertgirga.com/RobertGirga/investing-in-colombia-iii-the-cafetero/
25. • As the Colombian Civil War winds down expect
to see property values go up and tourism
increase.
http://robertgirga.com/RobertGirga/investing-in-colombia-iii-the-cafetero/
26. • In the meantime, drop into the Juan Valdez
coffee shop by Cable Plaza in Manizales and
enjoy a cup of some of the best Arabica coffee in
the world.
http://robertgirga.com/RobertGirga/investing-in-colombia-iii-the-cafetero/
27. The Rising Colombian Peso
• The Colombian peso has outperformed all other
currencies versus the US dollar in 2012.
http://robertgirga.com/RobertGirga/investing-in-colombia-iii-the-cafetero/
28. • For those interested in offshore investment and
offshore banking, Colombia may well be the
place to be as its economy takes off.
http://robertgirga.com/RobertGirga/investing-in-colombia-iii-the-cafetero/
29. • For more about investing in Colombia, read
Investing in Colombia I – The Caribbean,
Investing in Colombia II - Bogota, and Investing
in Colombia IV - The Amazon.
http://robertgirga.com/RobertGirga/investing-in-colombia-iii-the-cafetero/
