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The biggest transformation story in the world

I’ve written before a number of times about the long laundry list of reasons why I base myself and most of my business operations in Chile.

I could go on forever about this, but in short the country presents an exceptional mix of business, investment, and lifestyle opportunities that are extremely difficult to find just about anywhere else in the world.

But people ask me a lot-- if not Chile, where else?

[...] Click here to continue reading

Boy was I wrong about this place…

In 1927, US Supreme Court Justice Oliver Wendell Holmes famously wrote that “taxes are what we pay for civilized society.”

This quote is enshrined at the Internal Revenue Service, and it’s a rallying cry for people who constantly argue for higher taxes.

Almost everyone completely misunderstands what he meant.

First of all, tax rates in the United States were about 3.5% back in 1927, just a tiny fraction of what they are[...] Click here to continue reading

Fed president says US banks have “half the equity they need”

In a scathing editorial published in the Wall Street Journal today, the president of the Federal Reserve Bank of Minneapolis, Neel Kashkari, blasted US banks, saying that they still lacked sufficient capital to withstand a major crisis.

Kashkari makes a great analogy.

When you’re applying for a mortgage or business loan, sensible banks are supposed to demand a 20% down payment from their borrowers.

If you want to buy a $500,000 home,[...] Click here to continue reading

World’s 2nd largest stockpile of gold leaves the United States

About 20 years ago when I was still a cadet at West Point, my economics professor organized a class trip to the Federal Reserve Bank of New York.

The part of the trip that I remember most was touring the Fed’s high security vault, 80 feet below street level beneath the bank’s main office building downtown.

This vault houses the largest known depository of gold in the world.

None of that gold,[...] Click here to continue reading

Yes, money does grow on trees

If you’ve been a reader of this letter for any length of time, you may have noticed that I try to spend my weekends and free time at our farms in Chile.

I’m still on the road at least 6 months out of the year and travel to 30-40 different countries annually.

But when I’m not traveling or I’m not needed at our offices in Santiago, I go out of my way to[...] Click here to continue reading

The most successful investment strategy in the world

The most successful investment strategy in the world
Education is a BIG part of a having a Plan B… especially when it comes to money.

In light of the obvious risks that we discuss on a regular basis, safeguarding (and growing) our savings is absolutely critical.

Finance can be a little bit scary and seem quite complicated at first.

No one comes out of the womb a financial expert. And they certainly don’t teach this stuff in a government-controlled public[...] Click here to continue reading

World’s largest hedge fund manager predicts bleak future for markets

There are lots of famous investors and hedge fund managers who are legendary stock-pickers.

Warren Buffet is a great example.

Others are hard-core quantitative analysts who build complex trading algorithms.

Ray Dalio, the billionaire founder of Bridgewater Associates, is neither.

He’s a macro investor whose fortune was built on an uncanny ability to spot big macro trends.

He predicted in 2007, for example, that the US housing bubble would burst,[...] Click here to continue reading

More unbelievable facts from the US government’s own financial reports

Yesterday I told you that the US government had recently released its annual financial report to the public.

And the numbers are pretty gruesome.

For example, the government’s “net loss” in fiscal year 2016 more than doubled, from MINUS $467 billion to MINUS $1 trillion.

It’s astonishing that anyone could manage to lose so much money, let alone in a year where devoid of major wars, recessions, financial crises, or infrastructure projects.
[...] Click here to continue reading

US government’s 2016 net loss “more than doubled” to NEGATIVE $1 trillion

Every year around this time the US federal government releases an annual financial report to the public.

It would be hilarious if the numbers weren’t actually true.

Just like Apple or Exxon, the government’s annual report contains several important financial statements and detailed commentary about their finances and operations.

But unlike Apple, Exxon, the government can’t manage to turn a profit. Ever.

According to this year’s report, the government’s net loss[...] Click here to continue reading

How I earned 16% in a single week

I don’t understand Snapchat.

I hate sounding like a grumpy old curmudgeon (I’m only 38!), but it’s true.

If you have kids, you may have seen Snapchat… or if you’re one of our many younger readers, you probably use it yourself.

I understand the basic premise-- people share photos with each other, and then add funny ‘filters’ that make them look like a dog with floppy ears.

Last summer at the[...] Click here to continue reading