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This is a potentially life-changing investment

Education is a potentially life-changing investment
Yesterday I wandered out to the hotel pool to cool down from my workout, only to find a handful of Americans in the midst of a screaming match.

There were 6 or 7 of them altogether. Some pro-Trump, others vehemently anti-Trump.

They were shouting… literally shouting… at one another about transgender bathrooms, Islam, Obamacare, the border wall, and just about every other trending topic in the Twitterverse.

The temper tantrum from both[...] Click here to continue reading

The US stock market is highly overvalued. Here’s why…

The US Stock Market is overvalued
This is really starting to get out of control.

No doubt you’re familiar with the S&P 500, the stock index that measures the performance of the largest US companies.

And as we’ve discussed before, one of the most important benchmarks in measuring whether stocks are overvalued or undervalued is the Price/Earnings, or P/E ratio.

Looking back through more than a century of financial data, the long-term average P/E ratio for the S&P[...] Click here to continue reading

Reconsider holding these Dividend Aristocrat Stocks

On May 23, 1719, one of the greatest financial bubbles in the history of the world kicked off when the Compagnie Perpetuelle des Indes was granted a monopoly by the French monarchy over all the trading rights of all French colonies worldwide.

The company’s stock price quickly soared, from 300 livres per share to more than 1,000 just a few months later.

It was quite a jump. But the enthusiasm continued for more[...] Click here to continue reading

This is a great option for anyone’s Plan B

It seems like every time I come to Panama now the first word that springs to mind is “impressive”.

I first traveled to Panama back in 2003… fourteen years ago.

I remember landing at Tocumen International Airport for the first time-- it was a depressing backwater that was barely functioning.

And on the way into town there was hardly any sign of civilization; everything seemed completely impoverished.

Basically Panama was just[...] Click here to continue reading

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