BM: I think you can invest in any five energy companies or any five potash companies and be highly assured of a profit in one, two, five, 10 or 15 years. It isn't just the drought. The demand for potash will go up on a permanent basis, and the people who control potash will be in better shape. If you were going to look for a slam-dunk investment for the next 15 years, it would be anything related to energy—that includes agricultural stocks, which is an analog of the energy markets in that as the cost of energy calories increases, the cost of food calories rise too.
TER: So you think the potash companies could see a bump up in the next six months or so?
BM: More like an explosion. I wouldn't be surprised to see Passport at $1/share, and that would be up 450%. It would be cheap at $1/share. Verde Potash (NPK:TSX) in Brazil is another one. It was $9/share in January and $4-and-change now. It has a big potash deposit it's going to put into production. It's moving forward. Nothing's changed except demand for potash should be higher, yet the stock is down 60%. Verde is definitely one of those slam-dunk stocks. There's simply no alternative. Brazil is growing rapidly, needs agriculture and is committed to developing it. It makes no sense to import potash. Verde will go higher because it's right there.