Saudi’s sovereign funds in 3.5 billion in Uber. Not a bad investment given Uber is disrupting the whole transportation sector. But where will Saudi invest the rest of the 2 trillion dollars?
Well, here are some options.
- Take Meb Faber’s model and invest in cheapest CAPE stock markets. Such approach will diversify the sovereign funds risk and give places to park its money as long as the country’s equity markets are not too small.
- Real estate. I am sure they are buying lot of real estate already but they could take it to the next level and buy real estate in Greece, Italy, and any struggling nation. After all land does not depreciate or disappear.
- Commodities. Yup, commodities are in the dumpster. But we need commodities. They can just buy lot of commodities and sit on it. After all, Saudis do build a lot so it will not hurt to stockpile.
- Berkshire. Warren Buffett of course. Investing with him will likely result in above average returns.
- Farming. Saudi is already looking into producing more food at home. So investing in hydroponics and more advanced farming sounds like a good deal.
Let’s see how the Saudi sovereign fund invests.