The rules governing wealth have not changed in 2,000 years, only the tools and opportunities have changed. Baron Rothschild is credited, after Napoléon fall at Water Loo, with saying “ Buy when there’s blood in the streets, even if the blood is your own.” Clearly a pure contrarian. The modern investor Warren Buffet has made of career following that advice. One example is the November 2008 private convertible preferred stock purchase he made for $10 billion. He not only purchased Goldman Sachs stock cheap, he made them pay him 10% a year for 10 years for the privilege. Like Warren says” I like to buy my straw hats in December.”
In 1755 Munehisa Homma wrote The Fountain of Gold-The three monkey record of money. This book is still the foundation of modern market psychology and technical trading. Two of his quotes are “ When all are bearish, there is cause for prices to rise. When everyone is bullish, there is cause for prices to fall.” The other one is “To learn about the market ask the market, listening is the only way you become a detestable market demon.”
Our investing strategy is to use proven conservative investing models while waiting for opportunities to show themselves. Where we differ from most investors is in how we define conservative. We have 40 working models each of which is optimized in a different market environment. The last two decades have shown that bonds are just as volatile as stocks and there are no safe places to hide. Every investments has risks and benefits. Explaining those risks and helping you to figuring out what risk you are really willing to take and which ones you need to avoid is how we work with clients.