Third Avenue, in its valuation approach, does not subscribe to a primacy of Resource Conversion over Going Concern in its evaluation of equity securities because of a view that Resource Conversion is more important or more commonplace necessarily in the overall
economic scheme of things.
Explained Fogo de Chao CEO Larry Johnson in an interview at the ICR Conference Monday, «We serve a higher - income customer in Brazil — it's not that they are fully insulated from the
economic downturn, but in the grand
scheme of things they are still going to go out to business and family events — yes, we'll have some dip in results but we can deal with that.»
Looking forward,
things to watch include: the impact
of economic recovery on commodity prices and agricultural expansion for food and biofuels production; large - scale land acquisition by foreign nations and corporations in tropical countries; climate negotiations and the REDD mechanism, including controversies over land rights, «offsetting», forest definitions, and sustainable forest management; the emergence
of payments for ecosystem services beyond REDD; the cap - and - trade versus carbon tax
schemes; efforts to address the demand side
of deforestation — notably consumption; emerging certification systems for agricultural and forestry products (i.e. RSPO, Aliança da Terra, FSC, etc); and Brazil's progress in meeting its deforestation reduction targets.