During his recent interview with CNBC, Druckenmiller discusses his investment in Argentina, inspired by a Davos speech. He used Perplexity to identify the top five liquid Argentine ADRs and, following George Soros’ strategy of investing first and investigating later, bought them all. His positions have since grown, bolstered by positive developments in Argentina, including Elon Musk’s endorsement.
Here’s an excerpt from the interview:
Druckenmiller: I’m not only invested in Argentina. By the way, do you want to hear how I invested in Argentina? It’s a funny story. I saw — I wasn’t at Davos, but I saw the speech in Davos and it was about 1:00 in the afternoon in my office. I dialed up Perplexity and I said, give me the five most liquid ADRs in Argentina.
Kernen: Argentina.
Druckenmiller: It gave me enough of a description that I follow the old Soros rule, invest and then investigate. I bought all of them. We did some work on them. I increased my positions and so far, it’s been great. But we’ll see. I don’t know how much time the populace is going to give this guy, but so far, his popularity is maintained and —
Kernen: Yeah, Elon Musk tweeting about — he met with him I guess yesterday and then tweeted out, I recommend investing in Argentina. I know you met with him as well and I heard from you that this — I mean, it was just so — you were so impressed that you want to tell your friends about this.
Druckenmiller: He’s — he’s over the top in terms of —
Kernen: I’ve seen some interviews.
Druckenmiller: — the spectrum, but the fact of the matter is the country’s been so devastated for so long. I mean, they were the eighth richest country in the world and now I don’t what they’re — they’re like 150.
So, Argentina was ready for this, but it took somebody not crazy but on the spectrum to be able to do these kind of reforms. I — it’s really the inverse of what’s going on here. We’re avoiding all the pain. We have no pain.
We’re the richest country in the world and you just wonder if we continue to go down this path toward the public sector over the private sector. Look, I agree. We’re all always going to be the place that you want to invest in, but I just hate to see Argentina out-capitalizing America, and that’s kind of where we’re going with this.
You can read a transcript of the entire interview here:
CNBC Transcript – Stanley Druckenmiller
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