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Financial Times values Greenland at $1.1 tn, Buy rating in mock sellside report
- TMWNN 7y agoThe Financial Times values Greenland at $1.1 trillion. While done in a humorous tone, the mock sellside research report uses an interesting sum-of-parts valuation model: * $300-400bn for possible oil reserves. * $500-700bn for rare earth minerals. * $200-220bn for potentially developable land. The report points out that the US has a good track record of accretive acquisitions, with the Louisiana Purchase, Manhattan island, and Alaska all producing 7-9% in annual returns. Interest rates are very low, easing borrowing the money. A risk is other bidders, specifically Canada and China, making offers, although the newspaper points out that China is busy with Hong Kong at the moment.