| By Bill Bonner Monday, November 23, 2020 SOMEWHERE BETWEEN MIAMI AND BALTIMORE – We spend time every year at our family ranch in Argentina. The first question people generally ask about the ranch is “Why?” Why get involved in a difficult property, in a distant part of a dysfunctional country, operating in a language we don’t really speak, and working with people whose customs and beliefs are beyond our understanding? That question has no ready answer. I can only say the natural beauty of the place is breathtaking. Because of the way it has been worked – with stone walls, hidden valleys, Indian ruins and so forth – it is unlike anything available in the U.S. It was also much cheaper… I compared prices of a few properties in New Mexico and Arizona. First, they were much smaller. Second, although they have more or less the same natural beauty, they lack the charm added by generations of irrigators, stone masons, and tree planters. And third, they cost about 10 times as much. As for the business, climatic, cultural, and linguistic challenges, I find them interesting and worthwhile… at least, for now. But it is a lot of work and investment. So what do we get out of it? The typical investor looks for large, fast, liquid returns. The best investment for us is one that brings steady returns over a long period of time. | Recommended Link | | Millionaire's Big Prediction From Living Room Couch Teeka Tiwari – America’s No. 1 Investor – just made an outrageous prediction. Recorded live from his living room couch… He blasts Congress, reveals nasty truths about America… And reveals one technology set to radically change our nation. Already, 400,000+ viewers have checked it out. WARNING: This video may make you furious. | | | -- | Buffett’s Best-Kept Secret Legendary investor Warren Buffett made a similar point in an article in Fortune magazine. He referred to a farm he had bought many years before. He noticed that the farm required little of his attention… and yet, it had gone up nicely in value. And what most investors regard as a handicap – relative illiquidity – turned out to be a plus. Farms are not marked to market on an hourly… daily… or even annual basis. There is little temptation (and sometimes no means) to sell high… or to sell at all. Farmers tend to hold on… and property values tend to grow along with the general market. This gave Buffett a good return on his modest investment over a number of years. Buffett did not mention it, but a farm or ranch can yield returns in other forms. But only because it is not like a stock or a bond. It is not easy. It is not “hands-off.” It is not liquid. It is not quick. And the returns tend to be slow and low. Don't Be Left Empty Handed — Why Banks Bought 1,300 Tons of Gold. In our case, we are earning returns that go far beyond money. We are learning Spanish. And ranching. And the wine business. So far, what we have learned is that these are all tough businesses… not for amateurs or dilettantes. Farming in Argentina is in a class by itself. It is made more difficult by trying to manage it remotely most of the time. Each of these things could take a lifetime to learn and a whole book to describe. Since I’m already past official retirement age, I won’t do either. Instead, I’m just getting started on them. At best, I’ll get these projects headed in the right direction and sufficiently funded so that the next generation can pick them up… learn more… and make some real progress. Or they will know better than to even try! | Recommended Link | | End of the Apple, Amazon, Google, Netflix, and Facebook Era? If you think Apple, Amazon, Google, Netflix and Facebook will dominate Silicon Valley or the stock market forever, think again. We could be much closer to the end of that era. Agreed, each one of these tech titans represents a monumental achievement. Together, they have a combined market share of almost $5.7 trillion. And yet… All five of these dominant companies – along with many others just like them – could soon face a major wakeup call. They could even disappear, all because of this one event. | | | -- | Family Connections Some things take more than a single generation to master. Families build contacts, reputations, and knowledge over decades. If a member of the Beretta family wants to do a deal in the arms business, he can draw on generations of experience, family connections, and credibility. That is true in show business, too… where many of the best-known directors and actors come from “Hollywood families.” I’m thinking of Michael Douglas (son of Kirk Douglas), Jeff Bridges (son of Lloyd Bridges), and his brother Beau Bridges (whose son, Jordan, is also an actor). Frank Capra, one of Hollywood’s great directors, had a son, Frank Jr., who was a producer… and a grandson, Frank III, who is a director. The Coppola family dynasty includes a Francis, a Sophia (a director like her father), and a Roman (a successful screenwriter). Strange Holdings In Buffett's Portfolio… Ideally, successful families need to be producers, not consumers. They need to be active in businesses and careers, not just investments. And they need to be engaged in projects that span several generations… so that knowledge, expertise, and connections can accumulate. It is also nice if they can develop a sentimental attachment to the productive side of their lives. This helps hold the family together and focus it on its source of wealth. At least, those are the things I tell myself when I lay awake at night at the ranch wondering what the hell I am doing in such a godforsaken place… and in such a tough business. | Recommended Link | | Is THIS Warren Buffett's #1 Private Investment? In a private, back-room deal, Buffett picked up 700 million shares of an obscure type of private investment. He later sold them for $12 billion. Then Buffett did it again. He grabbed 46 million of these strange private assets for 1¢ a pop. And his stake has gone up as much as an extraordinary 4,429%. A tiny circle of our readers just saw the chance at gains as high as a once-in-a-lifetime 5,100% with one of these plays in the tech sector. It cost just 19¢ to get in! | | | -- | Toughen Up Life on the ranch “toughens you up.” And I have the bruises to prove it. I’ve been chased by a raging bull… thrown from a horse… and nearly arrested. But the bruises to our finances and our business reputation are probably more useful. This is where “toughening up” might pay off… Regards, Bill
Like what you’re reading? Send your thoughts to feedback@rogueeconomics.com.
FEATURED READS Fourth Quarter 2020 GDP Estimates Slashed Amid Coronavirus Surge
COVID-19 cases have spiked around the U.S. and local governments, in a panicked response, are calling once again for stay-at-home orders. These orders are curtailing movement – and economic activity – further condemning America’s finances… Doug Casey on the End of the American Empire
Bill and longtime friend Doug Casey both believe the time of the American Empire has expired. They both see a possible civil war in the years to come, but Doug thinks the U.S. is at risk for even greater peril… MAILBAG After Bill’s skepticism that face masks successfully reduce COVID-19 transmission, dear readers fiercely disagree… I hear and read the reports about the mask being ineffective from protecting the user from infection. This may be the case or not… It’s masking the real point of wearing a mask. The point being missed, how it was explained to me, is that the mask is for the safety and protection of others. The selfish and inconsiderate attitude of millions is affecting things to the negative. I can’t understand why this message is still not being understood! Please wear a mask for the safety, protection, and health of others… – Mark B. Bill, YOU ARE WRONG about face masks. Use that good, old common sense that will tell you, the next time you are going in for an operation, to ask all the surgeons, nurses, etc. to take off all their face masks. If they don’t matter, don’t be an idiot and preach BS; there is enough of it spreading around. I’ve spent enough years in the medical arena to know with absolute certainty that face masks reduce the risk of spreading germs, bacteria, and viruses. Wearing a mask is about respect and courtesy for others. – Ralph M. The point of masks, in general, is not to protect the wearer (why would a surgeon wear a mask to protect herself from the patient?) but rather to protect the others around them (or in the surgical analogy, the patient). The article from Denmark was in reaction to another recent article from the U.S. that suggested there was a small but significant effect protecting the wearer from others; however, that was never the point of mask wearing. – John W. You don’t wear a mask to protect yourself, you wear a mask to protect others. And to support frontline health care workers, doctors, and nurses working seven-day, extended shifts to the point of exhaustion. Why did being a good citizen need to become so politicized and polarizing? – John R. Masks protect others from the wearer’s nasal, etc. output, not the other way round. If we would all wear masks as suggested and take other precautions, we could eliminate spread and beat the virus. Not a big ask of people. – Ashford Meanwhile, last week, dear reader Bob W. said he preferred Joe Biden as president over Donald Trump… I would rather have “Sleepy Joe” in office when the dollar goes up in smoke, than a lying, conspiracy-theory thinker, con man, and authoritarian, want-to-be dictator like Trump. – Bob W. And today, another dear reader responds… Bob W. hates President Trump. That is clear. He prefers Biden, though he must have an inkling of what his presidency holds for America. Maybe Bob likes the idea of the New World Order. I’d like to know how Bob feels next year at this time… that is if we still have a First Amendment. I didn’t want to accept the fact that the USA has become a banana republic run by wealthy oligarchs, but alas, I must accept the fact that we have become just that. – Roy P. Will you be wearing a face mask this winter to protect people around you, as dear readers urge? How has COVID-19 affected you? Write us at feedback@rogueeconomics.com. IN CASE YOU MISSED IT… Buffett Dumps $800m of Apple, Buys This Instead! Through Berkshire Hathaway… Warren Buffett recently dumped $800 million of Apple stock… And bought this instead! He's now moved $3.8 BILLION into a tiny niche of the tech sector billionaires are flocking to… See full story here… 
Get Instant Access Click to read these free reports and automatically sign up for daily research. | 
Tidak ada komentar:
Posting Komentar