As a follower and sometime shareholder of asset-rich Argentine farming name Cresud (CRESY - Get Report), it certainly decreased my interest in deploying any capital into that region, at least without a greater margin of safety.
In Cresud's case, the prospect of the authorities seizing farmland seemed remote at best. However, if a government is power-hungry and economically ignorant enough to seize oil and gas interests, you can't rule out anything.
In Cresud's case, shares fell from $13 in late March of last year to just under $7 by June. That seemed like an appropriate margin of safety at the time, and I established a new position. After a 20% pop by last November, the position was closed. While not normally a shorter-term investor, the risks remained and the margin of safety had narrowed.
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