Arachán Capital > Portfolio Build [collateral]
Tough times helped many commodities producers become lean and mean through consolidation, mergers and cost-cutting. All that excess supply has been sopped up. - Jim Rogers
Hard times create strong men. Strong men create good times. Good times create weak men. And, weak men create hard times. -
The impediment to action advances action. What stands in the way becomes the way. - Marcus Aurelius, Meditations.
The general who became a slave. The slave who became a gladiator. The gladiator who defied an emperor. - Commodus
Speculating in crisis markets is the ultimate way to be a contrarian, which means buying when nobody else wants to buy [often politically caused distortions in the market]. - Doug Casey
U N D E R. C O N S T R U C T I O N
Portfolio build to attain capital for future growth thru hated mining & exploration companies is mostly complete.
Front Runner will be a book to document the genesis of change > Mind, body and capital stack. Surfers recognize we don’t control the ocean flows so rather use existing macro environment to ride entropy beneath the surface. Massive changes in the world’s economies & capital flows can be potentially harnessed thru contrarian speculation [aided by fundamental research > supply / demand].
Wealth is a process as much as accretion of assets. Many of our companies have dual mandates of intellectual capital as well as project assets [most deeply out of the money akin to option contracts].
Current position with Rosano’s Chevron in addition to the CIAT VA program has assisted with ‘Staying Power.’ [Sam Zell]
Never in my life did I imagine this type of opportunity while rebuilding from a TREK Bicycle.
Junior Resource shares have seen a ‘nuclear winter’ so when buying the crash we have an opportunity to own premiere teams. Extremely proficient people doing Real work. ‘Do not buy ground beef when filet is on sale.’
The set up for this summer could be ideal. We can list these holdings here as nobody really reads much less takes specific actions based upon calculating research.
GoldMining Inc.
Orogen Royalties
Gold Royalty
Augusta Gold
EMX Royalty
Elemental Altus Royalties
Aurion Resources
Equinox Gold
Lara Exploration
Kenorland Minerals
Radius Gold
Mirasol Resources
Liberty Gold
Riverside Resources
Strategic Resources [spin off]
Largest holding is primarily an optionality company now trading at negative enterprise value. A potential set up this summer for reversion to the mean could set up asymmetrical returns. One good trade… we plan to hold the bulk of the royalties / prospect generation companies.
- CAS
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Notes
We created the name California Sur archiving future plans to provide the a market with goods & services not readily available. The choice for Manantiales, Uruguay met specific criteria with the acquisition of a 2nd property in Diarrhea [El Chorro - hillside].*
Mentor: ‘New things in Old places & Old things in New places.’
Framing AAron Bros - Mobile Education > 5/6 years
Negotiation of contracts - Manufacturing Honeywell CAS Systems
Equitable solutions away from Western Financial Centers Rapidly Cannibalizing Financial Collateral
Refuge in Commodities / hard assets
Speculation upon people in good projects - Capital Structure Sound
Humility to create a commodity
Art Gallery from early feral adventurers / surfers / board design
* Time in Vista Detention Center & East Mesa Jail revealed the Mexican slang of ‘Chorro’ meaning dirty water or diarrhea. This moniker seems appropriate as the opportunity to buy our 2nd guesthouse with ocean views was only possible thru mass psychology of no interest in this area. Greenland / Iceland psychology.
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Paradigm Shift > Awakening > Consciousness > Opportunity.
Goal > Recapitalize a personal balance sheet earning multiples on capital.
Traditional Methods > Margin & Financial Leverage are the Flavor of the Day.
Less accommodative financial conditions [free money - no interest rates] gone in 2022 / 2023 may see reality > Those ‘Swimming Naked’ when the tide pulls out.
Our Approach > Embrace Distortions never seen in 30 / 50 years.
In October of 2001 in Solana Beach, California my life crossed paths with a new friend who ran a hedge fund back in the 1975-85 era. I had just returned from a Financial Advisory business class with Morgan Stanley which was suddenly interrupted by the demolition of our building [Tower 2, World Trader Center]. We were on the 61st floor and during a break alone I commenced emailing the branch manager in Del Mar after noting the perfectly clear day overlooking TriBeCa. As a former resident of Jersey City and growing up in Western Massachusetts I connected with my new former hedge fund friend who was wearing a Woods Hole T-shirt.
Life can take us in pivotal ways at crossroads. Fortunate to listen & respect elders who have acted with substantial experience. My friend Bob pounded away numerous systemic risks in the financial system and the virtues of gold & precious metals assets. Commodities were viewed as an ‘alternative’ investment strategy at the time by our research department but my world was increasingly accepting to new ideas upon witnessing the Tower next to ours vaporize down the street from SOHO.
The Rogers International Commodity ® Index commenced on July 31, 1998. Jim Rogers of the former Quantum Fund noted a secular bull market driven by Asian demand, years of misallocation of capital and future debasement of western world currencies.
Salient Points
Most do not read so lets get to bullet points:
2001 in NYC Paradigm Shift experience
Frog’s Gym noted Bob Farrell warning a ‘Capn’ Kidd’ Woods Hole Massachusetts T shirt. introduction to gold & commodities.
Morgan Stanley ‘Outperform’ on Barrick Gold. Underperform on Goldcorp. Our macro research was ‘bullish’ on gold.
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