Working Papers

Shorting Human Ingenuity

The other side of the long commodities trade:

When you buy commodities, you’re selling human ingenuity.

…Why bet against human ingenuity by buying physical commodities when you can bet on it by investing in the enterprises whose task is to remove the bottlenecks and lower commodity prices? So devote cash to the fixers, not the source: What I know is that I’d much rather buy the companies – for example the low cost integrateds, E&Ps and drillers – whose job it is to fix the world’s emerging energy problems than I would buy the energy itself.


posted on 21 December 2010 by skirchner in Commodity Prices, Economics

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