Category: Investing

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Where the puck will be

[Editor’s note: Tim Price, London-based wealth manager, is filling in for Simon today.] “My interest is in the future because I am going to spend the rest of my life there.” – Charles Kettering. Perhaps the most extraordinary and important presentation you will ever see can be found on YouTube, here. Dr Albert

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Everything changes at zero

[Editor’s note: Tim Price, London-based wealth manager, is filling in for Simon today.] For the benefit of non-subscribers, there are two versions of the Financial Times newspaper. One of them is the hard copy edition, still printed on pink paper, an exact digital replica of which is available on the paper’s website to

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Investor

Four lucrative asset classes beyond the mainstream

It was close to twenty years ago that I sat in my first personal finance class, learning how to invest money I didn’t have for a “retirement” that seemed inconceivably far away. It was my first year at the academy. And the government thought it appropriate to ensure that its future Army officers

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Your do-it-yourself front page financial Armageddon story

[Editor’s note: Tim Price, London-based wealth manager, is filling in for Simon today.] “The media select, they interpret, they emotionalize and they create facts.. The media not only reduce reality by lowering information density. They focus reality by accumulating information where “actually” none exists.. A typical stock market report looks like this: Stock

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Inside the battle for control of the Federal Reserve

[Editor’s note: Tim Price, London-based wealth manager, is filling in for Simon today.] A Shandong 5000 electroglide flatbed currency printing machine named ‘Ted’ has edged ahead in a fiercely competitive fight for the chairmanship of the US Federal Reserve, narrowly in front of its major rival, the Heidelberger Druckmaschinen high speed sheet fed

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Sage investment advice from Mike Tyson

[Editor’s note: Tim Price, London-based wealth manager, is filling in for Simon today.] In a crisis, it helps to have good counsel. Consider the following sage advice from investment strategist Mike Tyson: “Everyone has a plan ‘til they get punched in the mouth.” Or as German military strategist Helmuth von Moltke the Elder

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What’s the last dollar they can print before financial crisis?

[Editor’s note: Tim Price, London-based wealth manager, is filling in for Simon today.] In the field of mathematics, chaos theory studies the behavior of systems that are highly sensitive to initial conditions. The idea in chaos is that, like life itself, where you start today has tremendous influence on what happens next. In

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History repeats

“The proper behaviour all through the holiday season is to be drunk. This drunkenness culminates on New Year’s Eve, when you get so drunk you kiss the person you’re married to.” – P.J. O’Rourke. On May 29th 1969, Warren Buffett wrote to his partners at the Buffett Partnership, informing them of his intention

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Here’s how to trigger a bank run

[Editor’s Note: This letter was written by Tim Price, London-based wealth manager and frequent Sovereign Man contributor.] On August 6, 1979, Paul Volcker as the new Chairman of the Federal Reserve was determined to eliminate the terribly high inflation that had taken hold of the system. And he succeeded. The Fed’s primary interest

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The most undervalued investment markets in Asia

[Editor’s note: This letter was penned by Tim Price, London-based wealth manager and frequent Sovereign Man contributor.] Seven years on from the collapse of Lehman Brothers, everything has changed, and yet nothing has changed. There is no longer a perception of panic. $14 trillion of central bank stimulus has seen to that. But

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“Doubt may be uncomfortable, but certainty is absurd.”

[Editor’s note: Tim Price, London-based wealth manager, is filling in for Simon today.] As investors we are all suckers for narrative. The current narrative appears to be: China is slowing down, so the sky is falling in. Everybody in the West used to be concerned that China was taking over the world. Now

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Don’t tell my mother I’m in finance– she thinks I work in a brothel

[Editor’s note: This letter was written by Tim Price, London-based wealth manager and editor of Price Value International.] Those whom the gods wish to destroy they first pay too much. How else to account for the astonishing $200 million lawsuit filed last week by billionaire bond investor Bill Gross against his former employers,

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Still the best-kept secret in the world… but not for long

Growing up in the US I heard the same stories as everyone else about Colombia. Corruption. Drugs. Kidnapping and ransom. Narcoterrorists. Pablo Escobar. From the ivory towers in our suburban enclave, it seemed ludicrous why any sane individual would risk life and limb to visit such a dangerous place. Hollywood drove the point

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Apple Trees have outperformed Apple stock for almost 35 years

September 18, 2015 Sovereign Valley Farm, Chile It’s a big holiday today in Chile, what they call Fiestas Patrias. It’s sort of like their 4th of July or Canada Day. And it’s a big deal here… easily as important a holiday as Christmas or New Year’s. Down here at the farm, all the

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How I made an extra 15% by buying this stock on a foreign exchange

September 2, 2015 Vienna, Austria Recently I wrote to you explaining why I’d just purchased shares of Royal Dutch Shell. Shell is a giant in the oil industry that’s been in businesses for more than a century. And while I almost never buy stocks, they were practically giving this one away. When I

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It’s time to do absolutely nothing.

August 25, 2015 Spoleto, Italy [Editor’s note: This letter was written by Tim Price, frequent contributor to Sovereign Man’s Notes from the Field, and editor of Price Value International.] Hundreds of thousands of years ago, our early ancestors had a unique way of dealing with volatility. If something was truly threatening, our instincts

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Stock Prices

I rarely buy stocks, but I just bought this one. Here’s why.

August 21, 2015 Rome, Italy I grew up in Texas in a middle class household to two very hard-working parents. And to say we were middle class may even be a stretch. We were definitely clinging to the bottom rung of middle class. Money was always a problem. And my parents each held

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This currency has lost 97% of its value against the US dollar

August 10, 2015 Bali, Indonesia [Editor’s note: Sovereign Man’s Chief Investment Strategist Tim Staermose is filling in today while Simon is teaching at his annual youth entrepreneurship workshop.] In 1970, one United States dollar bought 360 Japanese yen. It also bought 363 Indonesian rupiah. Today, that same dollar buys just 124 yen. But,

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Sun Tzu on Value Investing

August 3, 2015 Vilnius, Lithuania In 506 BC, the ancient Chinese general Sun Tzu was in command of a vast army of the Wu Kingdom, preparing for battle against the neighboring Chu. Sun Tzu and his colleagues immediately sensed that the Chu army lacked the will to fight; so the general acted quickly

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No money down

This study shows how -value investors- turned $10,000 into $22,004,691

July 20, 2015 London, England [Editor’s note: Tim Price, London-based wealth manager and editor of Price Value International, is filling in while Simon travels to Europe.] History and convention tell us that bonds are the ‘safest’ investments in the world. Yet it is the crowning irony of the current financial situation that policy

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China takes advice from Mario Draghi. Failure ensues.

July 13, 2015 London, England [Editor’s note: This letter comes from Tim Price, London-based wealth manager and frequent Sovereign Man contributor.] “Nobody knows anything.” That was famed Hollywood producer William Goldman’s sardonic assessment of the movie business in his classic memoir ‘Adventures in the screen trade’. In finance, things are subtly different. “Nobody

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China flag

China’s stock market is the biggest bubble in history.

July 7, 2015 Hong Kong [Editor’s Note: This missive was penned by Tim Staermose, Sovereign Man’s Chief Investment Strategist.] The Chinese stock market bubble is bursting. And the government is hitting the panic button. Having actively encouraged the bubble with cheap money, lax margin loan regulations, and constant cheerleading and propaganda, Chinese authorties

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An American biologist sums up financial markets

June 22, 2015 London, England [Editor’s note: This letter was written by Tim Price, London-based wealth manager and frequent Sovereign Man contributor.] The great biologist E.O. Wilson once observed: “The real problem of humanity is the following: we have paleolithic emotions; medieval institutions; and god-like technology. And it is terrifically dangerous, and it

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Great financial advice from a 2,400-year old medical textbook

June 9, 2015 Oxford, England In the 5th century BC during the Golden Age of Athens, culture and intellect flourished in Ancient Greece more than at any other time or place in history up to that point. It was an amazing period of discovery. Philosophers Socrates and Plato, writers Sophocles and Euripides, historians

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How much gold should you have in your portfolio?

While I was in Mexico for our Global Offshore and Investment Summit in Cancun in 2015, I was approached by Forbes Mexico for an interview on some of the key trends in the global economy as well as internationalization strategies for investors. You can read the full article here in Spanish, and below I’m

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Quantitative Easing appeals to economists with no grasp of history

May 5, 2015 London, England [Editor’s note: This letter was written by Tim Price, Director of Investment at PFP Wealth Management in the UK.] There is one thing riskier than investing in a free market: investing in a rigged market when you think the central bank has your back. At some point, the

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Somebody show this chart to Jim Cramer

Cancun, Mexico April 23, 2015 The next time some financial pundit tells you to buy stocks, show them this chart. It’s an incredibly interesting take on not only how expensive stocks are right now, but also how the monetary system has left the average guy behind. The Dow Jones Industrial Average, when priced

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When Jamie Dimon highlights risks in the market, it’s time to get out.

April 20, 2015 London, England [Editor’s note: This letter was penned by Tim Price, Director of Investment at PFP Wealth Management in the UK.] In Lewis Carroll’s Through the Looking-Glass, the Queen would sometimes believe as many as six impossible things before breakfast. She is probably working in the bond markets now. The

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