Interesting talk on capital preservation

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Hal
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Interesting talk on capital preservation

Post by Hal » Mon Jul 09, 2018 6:29 am

Any thoughts welcome! Enjoy, it runs for 2 1/2 Hrs.

https://www.youtube.com/watch?v=a4_U6bS-cU4
Pet Hog
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Re: Interesting talk on capital preservation

Post by Pet Hog » Tue Jul 10, 2018 4:26 pm

Thanks, Hal. I did enjoy the conversation. Lots of sanity in Deden's ideas. Definitely recommended for PP aficionados. In essence, his style is to invest in things that are scarce, permanent/enduring, and independent -- gold being a major example (35%), along with salmon farms, barrel makers, and other boring industries led by honorable people. Distrust of governments, finance, media, debt. No mention of his returns, but I guess his clients are happy. The goal is capital preservation, not growth. The video is beautifully filmed, with gorgeous scenery of the Swiss alps. I enjoyed watching for that alone!
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Xan
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Re: Interesting talk on capital preservation

Post by Xan » Mon Jul 16, 2018 6:03 pm

Fantastic interview. I haven't quite finished. But he captures a lot of the things we talk about here: how money isn't real but real things are real.

He's not in gold because he thinks it's going to go up: he considers gold to be his liquid asset so he can jump on other things. He certainly doesn't believe that his liquid asset should be a claim on anything else. He doesn't want it to be somebody else's debt, he doesn't trust governments or ratings agencies. So it's gold, which certainly is scarce, permanent, and independent.

He's really down on almost every company, certainly everything where finance is involved. The idea is that any public company's primary business is its stock. The actual business they're in is just an obstacle to the stock going up. He believes in being an OWNER, not an investor. He's in it for the really, really long term. He likes to buy 1, 2, 5, up to 10% of closely held private or semi-private companies which are primarily owned by one or two families.

Bic. Bel. The company that makes the exciter that is in every airbag. There are thousands of companies making whiskey, hundreds making whiskey bottles, but only one that makes machines that make whiskey bottles. He has an interest in that company.

He even said "freedom in an unfree world" at one point! Perhaps he's read the book?

Really the theme is the search for economic value rather than financial value.
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