 Good day, fellow investors. I hope you're doing great today and first let me start with the best investment that I have ever seen. If you take half a potato and you put it in the ground, after a few months you get to five, even seven potatoes possibly. So that's a return of 1000% or a 10-bagger. So that's something much, much better than whatever we get when investing in stocks. Apart from the jokes, today's topic is investing in food and food commodities. We're going to discuss the environment, the scenario and why it is getting attractive to invest in such stocks or at least to have portfolio exposure. It's very, very important to see what's going on in this world of inflated asset prices but we haven't yet seen food inflation. As inflation is unlinear, as it's segmented across sectors, we could see food inflation in the future, especially as the trend is extremely positive. Let's see what's going on. As you know, global population is growing and expected to grow to 9 billion in 2050. Apart from the global population growth, there is also economic development. So people are going to have more money, which means they're going to eat more, which means there is going to be higher demand for food, a steadily rising trend. We'll see later how the trend food demand globally grows constantly year after year after year after year, which is a very positive trend and highly unlikely that there will be any changes there. However, if we look at the arable land, available arable land, you can see that it is really flat. So yields have to go up, food has to be produced more and more, more fertilizer, whatever in order to keep demand high. And the arable land is declining in developed countries. There can also be some irrigation water issues across the globe. So it's a very, very interesting sector to see how it is going. But for now we have limited supply of land, stable supply of land and constantly growing demand that with the increased number of people and higher economic power might even increase 50% in the next 20, 40 years, which is a very, very strong trend. However, the agriculture index has been constantly declining over the past six years and has very, very negative annual returns of 8% per year. So that's very, very bad if you invested in food 10 years ago. However, the lower the price, the more interesting it gets from a value perspective in a positively growing sector. The reason for such performance are multiple crop yields have been increasing, technology is improving, fertilizer oil prices are down, fertilizer prices are down. So there is much, much more competition. And for the last four years, we have been seeing bumper crops all around the world because the weather has been benign to farmers. If there will be seven years of growth and seven years of starvation, then food prices will be very, very high. However, as analysts, as investors, you always look at what happened last year and replicate that in the future. Don't expect linearity. But you have to have the courage to invest now in something that's not linear and has been declining for 10 years. So adequate portfolio positioning is the key. Here you can see crop yields over the last 50, 60 years have been constantly increasing with severe drop downs due to the weather. We haven't seen one for the last four years. Last one was 2012 when food prices were extremely high. However, we can expect similar things to happen also in the future. And then you want to be invested. But you have to be invested beforehand. So the best way to invest is to find investments that have a satisfying yield now and that are stable, low risk and exposed to high jumps in the future. What's also very important is you can see that corn prices are very, very volatile up and down all over the place. But if we look from the 1970s to now, despite the increasing yields, despite the technology, they have really increased about three, four fold. So the trend is there and is strong. However, you have to take advantage of the volatility by portfolio rebalancing. The countries that offer huge developments, Brazil is expected to really grow its exports. The United States growth exports, Argentina growth exports, Black Sea also and the imports, of course, huge demand expect to come from Asia, Middle East and Latin America a little bit, but not that much. Speaking of the trend I already mentioned, it is growing. And if we look at the US Department of Agriculture's monthly agricultural supply and demand estimates, we can see that that food demand is constantly growing, steadily, steadily growing. And that's very, very important because it shows how the trend is very, very positive. Now, what's the investment thesis for food? One growing trend, as I said, supply, strong supply now, very low prices because the weather has been very good. If we see bad weather for a few years, food prices will skyrocket. So we have to find an investment where the downside is limited because the company is good and with a high, high upside, as always the best low risk high reward investments. Lower prices, lower food prices have really created such situations. And I will be talking about stocks, food stocks in my next video. So make sure to subscribe to get the whole story. What's very interesting is that food offers inflation protection. Here you can see export food prices. The growth hasn't been linear, but we can see stability for 10, 15, 20 years and then a huge boom. And then again stability and then there will probably again come a huge boom. And you want to take advantage of those huge booms in food prices. When it will happen, nobody knows. An example of food stocks, Archer Daniels Midland hasn't really moved in the last three years, even if the stock market has really rallied. If the sentiment becomes more positive for the food sector, then we can really see great returns there with limited risk because the valuations aren't that high. I'll talk about 10 stocks in my next video where we will look at valuations. Thank you for watching. Let me know what you think about these food stocks and how that fits your portfolio in the very, very long term. I'll see you in the next video.