What is cash? Is it the world’s safest asset? Or is it a speculation? What follows is a rumination on something that has been bothering me (and perhaps you too): cash. We currently recommend a 25% allocation to “home currency” cash. A lot, in other words.
Thomas Jefferson was opposed to a “national debt.” He thought it was immoral that one generation should spend on credit, forcing the next generation to pay the bill. Jefferson knew what a burden debt could be – especially when it is debt for spending he didn’t enjoy himself.
I begin this first update with a sad note. I’m in London for a requiem mass at Westminster Cathedral for Lord William Rees-Mogg, who died right after Christmas. William was a business associate of mine for nearly 30 years. He was the chairman of our London-based business, Fleet Street Publications, which publishes MoneyWeek magazine (Britain’s largest circulation weekly investment magazine).
Our family’s tax team – Jeff Radowich and Brian O’Connor of Veneble – came to the office yesterday. We decided on two important moves. First, we’re pulling money out of the business (and putting it in our personal accounts). Taxes on dividends are scheduled to go up from 15% to 20% – a 33% increase. Why wait?
In my new book I have a section on the German economy in World War II. The thing the Germans wanted after World War I was security. Surely a little bit of security is a good thing, right? But how about a lot of security?
Today’s report is based on the presentation I gave at the first Family Wealth Investment Form in Nicaragua. It is not about economics… at least not as it is commonly understood. Modern economists are complete frauds in my opinion.