Monday, January 29, 2018

A third, a third, and a third

Woman in Gold
I was infuriated by a fellow traveller on Australia Day. For the opinion and probably because it seemed to me this person was a teacher - polluting our young peoples minds...
It was about the "invasion" day crap - I think about the fact that a majority of the arrivals on January 26th 1788 - most were white slaves - we call them convicts - incarcerated for "crimes" that today wouldn't even attract an "on the spot" fine... And I wonder if we should have a national apology to them?
But the particular thing that annoyed me was a sated preference to the original land title system in Australia before Cook's arrival to colonise Australia - common wealth - what's mine is yours.
I asked, seriously, would they mind if I and 20 others can to live with them without paying our way - "Oh you are changing the argument " they said...
Here is how James Rickards talks about what it takes to preserve wealth over centuries
The frequent reply is "a third, a third, and a third."
"Yet as one goes abroad, there is an even older kind of money, true dynastic wealth that has existed in some families for 300 years or longer. This type of wealth has survived not only business cycles but also war, invasion, the collapse of empires, revolution, and natural disaster. In order for family wealth to persist through so many centuries and through such adversity, something more is needed than ordinary investment skill. This rare kind of success in wealth preservation requires a longer view, infused with a sense of history and a keen appreciation for worst-case scenarios that too frequently become real.
When one inquires of family members and representatives as to what it takes to preserve wealth over centuries and not just cycles, the frequent reply is "a third, a third, and a third." This is shorthand for dividing one's wealth into one-third land, one-third gold, and one-third fine art. Obviously some liquidity is needed for day-to-day expenses and some room can be made for a speculative portfolio, but the basic idea that land, gold, and art outlast and outperform riskier assets such as stocks, bonds, and cash seems sound when viewed from the perspective of centuries and not just years or decades."
What about the Nazi's their shrill reply??
When in Vienna recently we were exposed to the Gold Lady - the repatriation of a painting to the heirs of a family who lost their wealth in the Second World War - I think someone paid $140 million to that heir for the painting - and wealth was restored!

Speak up or we will end up in a socialist system - what is the saying "The worst thing about Capitalism is that is was named by a socialist - Karl Marx.

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