Letter to Investors Q2 2014 (Hedgehog Capital)
In: Investing
Both equity short sellers and precious metals investors have been in despair. This proves again that investing is not a craft for merely smart, intelligent people. The emotional skill set that one needs to endure market folly is just as necessary a prerequisite. I gladly recall the famous words of Jesse Livermore, a notorious speculator in the era of the Great Depression: “It never was my thinking that made the big money for me. It always was my sitting. Got that? My sitting tight!” Apparently, […]
The Fatal Flaw of 100% Reserve Banking
In: Economics
There is a huge divide between theorists of two allegedly opposed monetary doctrines: the 100% reserve bankers and the free bankers. Although I do contend that both postures have more in common than many at first sight think, the fatal flaw of 100% reserve banking can be boiled down to one very simple error. When we take this fatal flaw away, nothing stands in the way to reconcile both doctrines.
A Quarter Century of Emerging-Markets Investing (Mark Mobius)
In: Investing
At one time or another, every country could have been classified as “emerging.” Back in the 1800s, the Western part of the United States was called the “new frontier.” Investors purchasing farmland there were likely to consider it a highly speculative venture putting stakes in such a rugged and wild place.
What is the “Warren Buffett of Europe” Up To? (CFA Institute)
In: Investing
Every first quarter of the year, the Spanish firm Bestinver Asset Management holds its annual meeting with investors. This year, the meeting had to be postponed until 16 April (from 4 March) because of administrative problems with the venue where it was originally scheduled to be held. The event is a small-scale replica of the Berkshire Hathaway meeting, but it is large enough to fill a 3,000 seat theater in IFEMA, Madrid’s main convention center, and includes an unlimited Q&A […]

Fraud: Why the Great Recession