They say everything is bigger in Texas. This week, at the Great Investors Best Ideas Investment Symposium in Dallas, I learned that statement also applies to Saran Wrap, which apparently comes in rolls of 3000 feet on request in at least one of the city’s top restaurants.
I also learned that David Einhorn has caught on to our long-held investment thesis that the combination of an Australian surge in supply, with a dramatic Chinese slowdown, will not end well for the producers of iron ore and other miners of industrial metals, dependent upon the unlimited expansion of emerging market infrastructure.
We plan to publish an updated look at Australia and the resource sector specifically, as soon as we complete our work on a new Greek investment we are currently building. We think it is notable that a number of long-term China bulls, who advocated “being long what China is short” for the better part of the past decade, have recently changed their tune and “benched” this strategy as China’s industrial production growth hits levels last seen during the depths of the global financial crisis. Our friend Cullen Thompson at Bienville Capital Management has provided a detailed analysis of the issues facing the Chinese economy following our recent tour of “One Giant Epcot Center.” Cullen’s letter is embedded below and for what it is worth, he can also verify that Saran Wrap is bigger in Texas. Unfortunately, you’ll have to send him an email to confirm, as several weeks later, he is still waiting for his new Apple iPhone 5.