Before we see a unique Galapagos potential, look at this excerpt from one of last week’s Multi Currency Lessons:
The example below is from the Economist Magazine statistics section. You can see it all at the Economist at Trade, exchange rates, budget balance and interest rates.
This shows January 29, 2009 data and indicates a distortion and value in the Danish kroner.
I am looking for long term value… not immediate trends on where the currency will move today or in the near future.
First I look at the interest rate. This is the fundamental factor that has the most immediate impact on currency strength.
Here we see that the Danish kroner for example has a very high interest rate compared to most of the major currencies…especially the euro. Denmark’s short term interest is 4.50% versus 0.27% for the US dollar and 2.12% for the euro.
The kroner thus looks like good value. The Danish kroner has higher interest… a balanced budget… and positive trade and current account balances… plus it has been falling versus the dollar.
This is what I look for… value… a currency that is down when all its fundamentals are up.
This lesson shows why the Danish kroner may offer special opportunity now and you can read the entire lesson as a Multi Currency subscriber.
However, the reason I shared this excerpt is to show a cruel trick that investment markets are playing on investors.
There are enormous risk in the market… but no yields. Look at the numbers above again. a three month deposit in US dollars barely pays a quarter of a per cent. 10 year US bonds a mere 2.65%… while we are being clobbered by inflation. This is a guarantee to lose purchasing power.
Even the potentially strong Danish kroner pays just 4.5% per annum.
Investors have to look beyond the standard to make better than average returns and this is very difficult right now.
A Galapagos opportunity may offer one way to enjoy strong returns even though markets and the global economy are down.
There are few such special and rare places that provide extra potential…such as the ownership of this Galapagos cruise boat… and more.
There are two reasons why few places are as special as this pristine group of islands. The first is the incredible brand image of the Galapagos. The second is the enormous demand for tourism there. The Galapagos is totally unique. There is no similar destination in the world.
Environmental sensitivity is one of the fastest growing concerns in the world. Galapagos is perhaps the crown jewel of environmental tourism and … there is nothing else like it…anywhere.
I have written about opportunities in both land and water based investments in these islands numerous times over the past decade. So I perked up a bit when our friend, Kjetil Haugan, sent me a note. Kjetil has developed a large Galapagos cruise business and started a company that brought in investors to build three yachts for Galapagos cruising. The first was the Athala.
As you’ll see below the return that comes from such a boat is quite spectacular.
There are only 84 licenses to cruise Galapagos. There have never been more and never will be. The company that Kjetil built has two of these licenses.
Gary, We now have two boats operational in Galapagos and have the ability to grow to three. Having the third boat increases profit as central management cost per boat are reduced. Though bad times may have hit other parts of the economy, our business remains brisk.
We are most interested in finding someone who would lend us money at up to 15% interest with a mortgage on the yacht. If this is not possible we would try to find someone who want to buy expansion shares. We have already sold 140 passengers on our second boat, the Nina even before she starts to operate and just last week we sold 25 spaces..so sales are very good despite the global economic crises. As you know Gary I have been doing many different things in Ecuador but this is by far the best and most interesting business I have been involved with. I hope there are people out there who will join us on this. Regards, Kjetil
Kjetil’s company built its first Galapagos cruise boat, and started operations in July 2006. They have had almost full occupancy since day one. That boat was sold and a second built, the Athala, which has been running now almost two years. Their return in 2008 was 17%.
Now they have have completed the Nina. She was launched last month.
The Nina is the most luxurious boat in the Galapagos.
I have had many dealings with Kjetil over the years and have found him hard working, intelligent and honest. I have purchased a number of condos from him that he built on the coast.
He owns and operates two Spanish schools in Ecuador, a hotel, a coastal condo development plus has had a logging business as well. Plus Kjetils company owns a very important website www.galapagosislands.com
Though I trust Kjetil based on my past experiences with him (or I would not share this with you), I have not investigated this deeply and if you have an interest you should exercise normal due diligence.
I am not involved in this opportunity in any way nor do I gain in any way from introducing him to you.
You can also see more about Kjetil’s boats, Athala and Nina, at his cruise website www.galapagosluxurycruise.com
One or two large serious investors can invest in all of this. If you like the idea of investing in a Galapagos cruise business you can contact Kjetil direct at firstname.lastname@example.org
Until next message, good global investing.
Join us in Cotacachi and on Ecuador Coast in March.
Merri, our webmaster and I have created a new course on how to build a web business with a webmaster. Here is a special offer on this new course.
You can enroll in this special course for $299. However if you sign up for our three courses in March 2009, I will send it to you free. You save $299.
March 8-9 Imbabura Real Estate Tour
March 10-15 Ecuador Import Export Expedition
March 16-19 Ecuador Coastal Real Estate Tour
Bob Shane will be at our March courses and will be available to provide health balancing.
Get our web based course FREE if you join us in Ecuador this February or March.
Attend any two Ecuador courses or tours in a calendar month…$949 for one. $1,349 for two
Attend any three Ecuador courses or tours in a calendar month…$1,199 for one. $1,799 for two
Future 2009 courses
May 29-31 JGAM Global Asset Strategy Seminar
July 24-26 IBEZ North Carolina
Oct. 9-11 IBEZ North Carolina
Oct. 21-24 Ecuador Import Export Expedition