Wednesday, June 22, 2005
The Bernese Oberland, Switzerland
Dear International Living Reader,
There's a valuable lesson to be learned from the oil sheiks who have invested in Switzerland; they know that the Grand Hotel Victoria Jungfrau company (VIJN.Zurich) owns and operates quite simply the best luxury hotel in the whole country.
The group's newly refurbished spa in the Bernese Oberland has recently won many awards, and the rooms at the front of the hotel enjoy the very best view of the Jungfrau Mountain. While some visitors to the region are happily shelling out 760 Swiss francs ($600) for the cheapest room, others have found a way to get into one of the Grand Hotel's finest rooms at a much cheaper rate: if you own shares in the company, you get a 20% discount.
Because a number of Swiss investors have bought shares in the group in order to make the most of the discount, the share price is now largely detached from the company's actual value. At a share price of 225 Swiss francs ($177), the P/E is a staggering 100 and even the value of the real estate doesn't justify the high price.
And guess who owns a large chunk of the hotel company? The Kuwait Investment Office: the oil sheiks bought a 23.8% stake in Grand Hotel Victoria Jungfrau back in 1978. It's been a splendid investment ever since.
Whether the sheiks are using the discounted hotel rate, too, I dare not say. Either way, there is something to be learned from the world's super-rich: the earlier you buy into this type of little-known investment opportunity, the greater your ultimate reward.
Beat Erni
For International Living
P.S. This kind of early-in opportunity is exactly what we aim to find in our Profit Hunter premium service. Sven Lorenz, myself, and other members of the Profit Hunter team are constantly following the tracks of the world's wealthy to come up with interesting, and often unique, investment plays. To find out more, visit our website: www.globalprofithunter.com
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Adventures abroad: further reading
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* The Agora Wealth Symposium--August 10-14, 2005, Vancouver, BC. Taking place at the luxurious Fairmont Hotel, The Agora Wealth Symposium will feature the world's top investment minds on options, alternative investments, real estate, and more. This is your chance to hear all of Agora's world-class experts--including International Living founder Bill Bonner, Global Real Estate Investor Editor Lief Simon, Oxford Club Investment Director Alex Green, Porter Stansberry, Dr. Steve Sjuggerud, and many more--beneath one roof. And, for the first time ever, the Agora Wealth Symposium will be complemented by an International Real Estate Exhibition, showcasing real estate investment and lifestyle opportunities from the world's top markets right now. For more information visit the Agora Wealth Symposium website or contact Agora Travel and Conference Services at (800)926-6575 (toll-free) or (561)243-6276. Follow this link to secure your spot today: http://www.awsymposium.com.
* "The Bernese Oberland is the mountainous area in the canton of Berne that encompasses some of Switzerland's most prestigious resorts, notably Adelboden, Grindelwald, Gstaad, and Wengen. In a moment, I'll explain an investment opportunity in this region that I think is worth a look…"
* "Turning sugar into oil…renewable fuel investments in Paradise." Sven Lorenz is International Living's global profit hunter with a 15-year reputation for outwitting Europe's best financiers. To read his article on renewable energy sources from the Indian Ocean, see the current issue of IL in print, available online for subscribers here.
* Find out more about International Living's Profit Hunter team here: www.profithunter.com.
