Trading Places
Successful investors tend to be unemotional, allowing the greed and fear of others to play into their hands. - Seth Klarman; Margin of Safety: Risk-Averse Value Investing Strategies for the Thoughtful Investor
What has been told, albino made of stone
Just remember that it's flesh and bone. - Pawn Shop; Sublime
No, You don’t know Diddley. - Nike Commercial [07.11.1989]
Not many comedy movies include a NYMEX commodity trading floor much less an interesting plot, real acting & dynamic characters. Trading Places [1983] isn’t the authors goal but when answering questions to a surfing pal … useful ‘metaphors we live by’ [great book] may be applicable.
The scene with Bo Diddley was a classic. Big fan of Delta Blues and generational legends of the guitar. Director Aaron Russo was known to be a very interesting guy and later had skeptical questions about where the wold was going… some say he was an agent being too close to the Rockefeller’s.. perhaps but in the end we revert to Marcus Aurelius… unknown and nothing to slow personal growth. Just focus / invest in yourself and help build others dreams…. karma.
Natural resource expert Rick Rule describes himself not as a modern tech visionary, but rather as an "old-fashioned credit analyst, pawn broker, resource". His personal portfolio strategy generally centers around balancing defensive cash/bullion savings with high-conviction natural resource holdings. [1]
Many coming into the gas station seeking lottery tickets. Why not look at a prospect generator who has some potential extreme asymmetrical opportunities like Radius Gold? With new cash on hand from a financing with an important new player - real assets in Mexico / Guatemala- Known discoveries and now a possible discovery in Peru around copper… Canadian market cap around $16M. Orogen Royalties & Lara Exploration continue to deliver. Best teams and the creation of real value to the marketplace… radical business plan during ‘the golden age of fraud.’ [Jim Chanos]
When explaining to my surf compadre the big picture I see as a former broker dealing in fixed income is the debt bubble beneath the surface which will never be paid > honestly… oldest game going back to The Epic of Gilgamesh…
Why do what everyone else is doing?
Rick Rule knows the western world is in a James Bond bubble where it will have to be inflated away…
Commodities & Extraction Industry companies have been in a bear market for over a generation…. Resulting in Supply Destruction.
The S&P allocation to basic materials is at a record low with massive overthinking / allocation in the ‘new technology.’
Contrarian Value worked in Manantiales, Uruguay… doubled down and the friends / community are possibly even more important after enjoying over two decades around this design beach…
Back to the capital build… fairly easy to buy into fear with very high quality royalties this summer. The earnings of these large corporate fixed income style companies is extraordinary when considering minimal fixed costs.
Inflation actually helps these businesses… thank god the big thinkers are not seeing the mine finance requirements this cycle and new conduits of capital offering Optionality.
Mineral Resources are a boring topic… but learning about real forces to move our own endeavor forward is kinda ‘as much fun as you can have with your clothes on…’
Seeing the battlefield- signal vs daily noise of greed & fear can be possible thru experience, research and direct interaction. Most today appear to seek high pay8nh jobs, career paths with recency bias or areas which seem fun vs have real winds at their sales (math vs narrative).
Surfers know the wave is in charge. Physics. We plan to position T H E / / E D G E in the same manner to serve others… with an ocean view style & tapas…
Feeling’ good [Eddie Murphy] but not cocky. Off to the gym on this Friday night to pound b4 bed en Casa Highlander. Japanese organic futon fusion on order .. 🔜 the little things in life. Gratitude.
- Cristó
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