Arbitrage

 

Emotions are the Death of Wealth. - David Brady

Success Book: How I Turned a Million in Real Estate into $25 Dollars in Cash. 

- Steve Martin

You think about how they had in in the 30’s & 40’s and how much open space there was and how much freedom was to follow their dreams… Realizing we are chasing the same stuff they were… It’s harder to find those open spaces now but they’re still there… if you dig deeper you can still find them.

- Surfer Chris Malloy [Film One California Day]

The market gives you the opportunity to arbitrage what the emotional investor will pay or sell at versus the fundamental value of a company, but you've got to pull the trigger promptly without hesitating. We've disciplined ourselves mentally and prepared ourselves in terms of information, as well as relationships with brokers, to do that. - Richard Chandler

• Arbitrage is the simultaneous purchase and sale of an asset in different markets to exploit tiny differences in their prices.
• Arbitrage trades are made in stocks, commodities, and currencies.
• Arbitrage takes advantage of the inevitable inefficiencies in markets.
• By exploiting market inefficiencies, however, the act of arbitraging brings markets closer to efficiency. - Investopedia

The opportunity to have acquired life changing opportunities to build and serve the market in Manantiales comes from recognition of a mania in the U.S. real estate market combined with years of bohemian research / travel. The Genesis of Baja California Sur / Posada Oceano is to remain creative, anti-fragile and of service to the public & staff.

Knowing who you are [von Mises] & Philosophy are Paramount [retrospective].

Point of this Exercise is not 2 “Puff up Feathers” -

How we were able to attain these properties > Saving capital > Contrarian Investments.

The Goal is to Let ANYONE KNOW with the right attitude, conviction and contrarian ideas there are potential opportunities of a lifetime out there…

^ ^ ^ AIM 2 Encourage & Enhance Staff to become OWNERS vs Workers ^ ^ ^

World Travel & Engaging in Real Industry assists significantly aided in Clarification of Goals.

Years 1998 > 2000

Sleeping out of a 1987 Toyota 4-Runner juggling the renovation of a 1913 Bungalow in Jerome, Arizona & a job at Honeywell Commercial Aviation Systems in Phoenix, Arizona illuminated the mission.

Years 2002 > 2003

Sleeping out of a 2002  VW Eurovan with Morgan Stanley Del Mar, California > Daily Paddle Outs > Pure focus on Surfing & Financial Markets.

 Years 2006 > 2007

Wealthy Successful Past clients > Most often say no > Data Driven. Lessons learned from Entrepreneurs helped to ACT & engage in Selling the Jerome, AZ project for our second land purchase in El Chorro, Uruguay.

Point of all this?

USNA Annapolis provided a traditional rule follower employee education.

Stock Market Crash of 2001 [Crisis > Opportunity] provided the beginnings of an Entrepreneurial life.

Renovation of a historic home - capital intensive process & travels with a cousin to assist with his project provided what could be the opportunity of a lifetime.

2006 > Selling Jerome Project while Market WAS LIQUID - WILLING BUYERS.

2007 > Transferring Capital to Posada Oceano in a distressed market.

Arbitrage is an investing strategy in which people aim to profit from varying prices for the same asset in different markets.

Who would have thought a kid from Detroit could own two cash flow properties in Manantiales, Uruguay > Front Running some Interesting People?

* Anyone Can Do This > Passion & Health meets Research & Humility.

Summary

Dr Marc Faber teaches us > Investors making few strategic moves > Don’t conflate action with progression.

Anyone young or old can Ride the Wave of Change. Primary consideration is we are not wealthy if not healthy so daily focus on mind & body has been constructive.

We are fortunate to not spend life as a trader. Strategic Moves [Slow Poke Rodriguez] while thinking quick en la cabeza.

Appear weak when you are strong, and strong when you are weak”

- Sun Tzu, The Art of War

Risk Mitigation & Culture are always considerations for the Adventurer Capitalist.

We are forever grateful to our broker in La Barra who found this deal thru the purchase of a home we owned in the past [Aguas Dulces, Uruguay]. The La Barra, Uruguay Brokerage had ZERO interest in this property as well as the other deal presented to us in Manantiales in 2007. These opportunities were of no interest to the experts in the area who may not have ventured outside the provisional coastal world to envision the coming changes off Ruta 104.

- CAS

P.S. We have no interest in the strategies below… Most our larger chess piece moves are around the delta between price & value > distortions in the marketplace from years of central bank intervention: Negative Real Interest Rates > Casino Hedge Fund Economy may see trouble soon.

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‘Quick-thinking’ traders have always taken advantage of arbitrage opportunities in markets. Today, financial professionals use sophisticated algorithms to discover and exploit complicated arbitrage strategies.Often the price discrepancies that are at the heart of arbitrage involve multiple geographies, like you see in the foreign exchange market. Potential short term opportunity also occurs when there is a lag in information, as can be the case with stocks trading on different exchanges or in cryptocurrency arbitrage. Big institutions, hedge funds and professional traders may also be able to leverage what’s known as statistical arbitrage, which uses algorithms to identify temporary price mismatches in two or more related securities. Arbitrage usually involves making multiple transactions and using very large amounts of money to get a meaningful return, making it an expensive approach to investing. While markets rarely operate as efficiently as they might in the ideal world of theory, price differences typically are small, and arbitrage opportunities disappear almost as rapidly as they are discovered. [Forbes]