This research shows the relationship between trade liberalization and food security for the Bolivian case. As a result of the severe economic crisis of the early-1980s, Bolivia adopted a series of market-oriented reforms in 1985. The reforms included the liberalization of the trade regime and the promotion of non-traditional exports. The trade liberalization had an important effect on the performance of cash crops, especially in the development of the soybeans industry. However, food crops did not have such a great dynamics. Vegetables and starchy roots declined in per capita terms and the increase in imports were not enough to compensate the decline. Trade reforms mostly favor a small group of large-scale farmers in the lowlands, who had historically been granted land in the region. In this sense, Bolivia’s involvement in a trade liberalization process has not been reflected in an overall improvement of the country’s food security.

This research explores the origin and evolution of value and growth investing strategies focusing on the principles that reduce risk and maximize the potential for future returns. These are contrasted with the theory and practice of efficient markets hypothesis which allows passive investors to achieve a respectable average return but discourages active portfolio management. Acknowledging the difficulty of outperforming the market by private investors, this research refers to the two drivers of successful stock picking: (i) the attitude of the investing community towards the market and/or the targeted stock at the time of purchase and, (ii) the value and growth potential of the underlying business. Concerning the first driver, asset overpricing and financial bubbles are analysed from the perspective of behavioural finance as a tool for timing the investing decision. Regarding the second driver, a framework for the quantitative and qualitative analysis of the underlying business is developed in order to provide the enterprising investor with the tools to reduce risk and maximize returns. To support these findings, a number of business cases are presented showing that consistent valuation of long Competitive Advantage Period (CAP ) companies, complemented with adequate market timing has the potential to outperform the market in the long run.