| Biofuels are gaining a lot of attention as of late by | | | | become energy independent this year. While this is |
| the private investment community, as well they | | | | a significant and impressive achievement, it is a |
| should. Biofuels are biodegradable, non-toxic, have | | | | very crude model. The design of many of the |
| significantly fewer noxious emissions than | | | | most popular investments today are based on |
| petroleum-based fuels when burned, and they are | | | | that model. |
| renewable. In a time when political unrest poses | | | | Disadvantages of using biodiesel produced from |
| threats to the oil supply and the whole world is | | | | agricultural crops involve additional land use, as land |
| making changes in an attempt to stop climate | | | | area is taken up and various agricultural inputs |
| change, the biofuel sector is appearing very | | | | with their environmental effects are inevitable. |
| attractive to many investors. | | | | Switching to biofuels on a large scale requires |
| A broker's job should be to look out for your | | | | considerable use of our arable area. Even modest |
| best interest as a client. Sadly, this is something I | | | | usages of biodiesel would consume almost all |
| have seen not enough of during my time in the | | | | cropland in some countries in Europe. If the same |
| securities industry. The reality is that a broker's | | | | thing is to happen all over the world, the impact |
| job is to sell a product. He accentuates the | | | | on global food supply could be a major concern, |
| positive. While he is obligated by law to disclose | | | | and could make some countries become net |
| pertinent facts about the program specifically that | | | | importers of food products, from their current |
| could shed a negative light, it is not his job to | | | | status of net exporters. It could so happen that |
| point out the weaknesses and potential | | | | most lands on the planet are deployed to produce |
| drawbacks to a market or industry as a whole. | | | | food for cars, not people. |
| That is your job as the investor, it's part of the | | | | Obviously, there are some serious problems with |
| due diligence process to know what kinds of | | | | this model and with where the majority of the |
| questions to ask and where to look for answers. | | | | industry is headed right now. This is a good thing |
| Today's 21st century Internet capabilities make | | | | to know before making any investments. |
| this task much easier than in the past. | | | | Realistically, if the numbers make sense then |
| The reality is that most brokers simply are not | | | | more than likely investments based on the |
| educated enough about their own industry. They | | | | current model will be profitable for several years, |
| know the specifics about their own programs and | | | | maybe more. Current levels of biofuel production |
| whatever propaganda their company tells them | | | | are not enough to cause third world riots just |
| about their strategy and not much more. In many | | | | yet, but a lot of people are yelling about it and it's |
| cases they got into the job because they are | | | | a possibility that's getting closer if we keep |
| good salesmen and there was a high income | | | | moving in the same direction. |
| potential, not because they happen to be | | | | Obviously conventional agriculture is not a long |
| particularly interested in soybeans. | | | | term solution to give us enough raw materials to |
| After nearly three decades of work, Brazil has | | | | replace petroleum. Now what? Fortunately many |
| succeeded where much of the industrialized world | | | | brilliant minds have been working on this problem |
| has failed: It has developed a cost-effective | | | | for years and have come up with some |
| alternative to gasoline. Along with new offshore oil | | | | interesting solutions. |
| discoveries, that's a big reason Brazil expects to | | | | |