Issue #12

Dear Subscriber,

Warren Buffett, the richest man in the world is bullish today. He's buying all of Burlington Northern Santa Fe (NYSE:BNI), a railroad which he's had an ownership interest in for years.

What does he see in Burlington to make him excited?

He's betting on a global run in materials and a US economic recovery. BNI's free cash flow over the last two years has averaged over $1 billion per year and is improving. Burlington coins money for shareholders by shipping coal, lumber and other commodities.

It's good new for us long term investors in Latin American stocks. This is a bullish buy signal for commodity-related stocks such as iron ore producer Vale (NYSE:VALE) and currencies such as the already too strong Brazilian Real.

But don't just take one billionaire's word for it. Look at how other billionaires are investing, especially the most successful Brazilian ones.

In March, when Forbes tallied its list of the world's billionaires, Brazil boasted 13 moguls with 10-figure fortunes. With a rising Brazilian real against the dollar and recovering stock market, these fortunes have gotten even larger since then.

Companies controlled by Eike Battista, Brazil's richest man were valued at over $7.5 billion in March. Now the stock prices of his three primary holding, LLX Logistica, MMX Mineracao e Metalicos and OGX Petroleo have risen in value by over 70% versus March.

Dorothea Steinbach who controls Companhia Siderugica Nacional (NYSE:SID) nearly doubled her personal wealth to $3 billion. And several more testimonials like these exist among the Brazilian billionaire jet set.

Still not convinced emerging world commodities have a permanent spot in your future portfolio? Check this out.

On Tuesday, the government of India announced it had bought 200 tonnes of gold from the International Monetary Fund warning that the economies of the US and Europe had collapsed. In effect, India bought up 8 per cent of the annual gold mine supply. That's half of the IMF's total volume approved for sale.

The financial market reaction was instant. The spot price of gold shot up 2.6 percent for the day. Traders are now betting that other central banks may have to become buyers so they have enough foreign exchange reserves.

Overnight, the outlook for higher gold prices has instantly improved. The higher stock prices of Goldcorp (NYSE:GG) and BVN (NYSE:BVN), our BUY-rated gold stocks, illustrate this new scarcity outlook.

Fortunately, the benefits of Latin American and gold stock investing are not just going to ultra-rich corporate insiders or central banks. You too can get in on the action via ADRs and ETFs.

So go ahead and act now on the new investment ideas in this newsletter.

Best wishes and happy trading!

+ Rudy