Kuwait discussed on The Meb Faber Show


Very clean clear investing policy to make sure that there's no adverse selection every farm. Go through the same diligence underwriting process select. Everyone gets the first pick. I often you guys kick out the farms during due diligence in what are the main reasons is evaluation referred to water earlier. Is it something else. Depends how we define your diligence because the way it works is that it was sort of due-diligence Every step of the funnel by if we were to define it as due-diligence signing the escrow in putting in the deposit than not that often actually quite better we did have a demon q. One where already during the escrow. We found that the was until liking was too risky so we walked away but most of the times especially because of the tech that we use on farm satellite imaging experienced with developing regions when we do underwriting one time. Let's if what district we know. That was good. It's not that often. There will actually or kuwait but it can happen. Most definitely will happen again and again. Because that's what you diligence is for starting. Thank you just cannot analyze enescu once it's up and operating what you guys sees. The main risks longtime listeners have heard me moan about one time we were doing a wheat harvest in our combine caught on fire and earn down the entire crop thankfully. We have insurance so two part question. What are some of the risks that you guys have to deal with wanted. Operating and to these have traditional insurance covers operational risks. Yeah definitely me around us for the main risks. Wondrous happens before you buy the farm which is just making sure you're by the right price so you have to look at third annual so for us. Great validation has been loans 'cause a lot of the farm steak on debt to improve the returns. So i'll find cyp appraised at or above the press Bank said yes but had direct price. So that's a great.

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