Carlos Slim: No Interest in US Dollar, Increasing Oil Investments in Colombia (ALY, BRNC)
The world richest man according to Forbes, Carlos Slim, told Bloomberg that he is seeking to boost investments in Colombia due to the open exploration policy in the country in terms of oil, as well as its mineral assets and expanding middle class.
Slim is looking use resources in Colombia to expand the drilling an oil-platform services he provides to Mexico's Pteroleos Mexicanos. Slim has holding totaling more than $70 billion, including stakes in U.S. oil companies Allis-Chalmers Energy Inc. (NYSE: ALY) and Bronco Drilling Co. (NASDAQ: BRNC).
“The government is actively looking at the development of the oil industry and is promoting other investments,” Slim said. “We’re looking at what to do beyond the telecommunications business that we’ve been doing for 10 years in Colombia.”
According to Slim, commodity prices are surging due to the increased consumption of emerging markets like China and India, while the value of the dollar is being driven down by those countries to build investments in commodities.
“They don’t want to have Treasuries,” Slim said. “The dollar is weak and there’s no interest, and also with commodities they have reserves for internal consumption.”
Slim also noted that he has only $500 million of his investments in U.S. markets, with the rest in Mexican companies. His worst-performing stock of 2010 was the New York Times (NYSE: NYT).
“We believe in all Latin America and that’s why we’re investing,” Slim said. “The macroeconomic variables are sound, healthy and many of the countries have raw materials that are having good prices.”
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Slim is looking use resources in Colombia to expand the drilling an oil-platform services he provides to Mexico's Pteroleos Mexicanos. Slim has holding totaling more than $70 billion, including stakes in U.S. oil companies Allis-Chalmers Energy Inc. (NYSE: ALY) and Bronco Drilling Co. (NASDAQ: BRNC).
“The government is actively looking at the development of the oil industry and is promoting other investments,” Slim said. “We’re looking at what to do beyond the telecommunications business that we’ve been doing for 10 years in Colombia.”
According to Slim, commodity prices are surging due to the increased consumption of emerging markets like China and India, while the value of the dollar is being driven down by those countries to build investments in commodities.
“They don’t want to have Treasuries,” Slim said. “The dollar is weak and there’s no interest, and also with commodities they have reserves for internal consumption.”
Slim also noted that he has only $500 million of his investments in U.S. markets, with the rest in Mexican companies. His worst-performing stock of 2010 was the New York Times (NYSE: NYT).
“We believe in all Latin America and that’s why we’re investing,” Slim said. “The macroeconomic variables are sound, healthy and many of the countries have raw materials that are having good prices.”
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