Guy Spier of Aquamarine Capital Management

http://www.valuepodcast.com/139#t=1:13.721

Analysis on Eurozone crisis vs US crisis:

  1. Both have strong central banks that have highly effective levers to mitigate systemic risk.
  2. The extensive printing of currency in both economies can potentially devalue the U.S. dollar and the Euro respectively.
  3. It will be up to these same central banks to hold off inflation.

 

Inflation protection:

  1. Look for natural resource produces at the lowest part of the cost curve
  2. Look for persistent advantages that may develop for a given market.  Examples:
    1. low energy prices will benefit businesses with high-energy expenses
    2. low materials cost will benefit production companies

 

General:

  1. When you invest in a market, become an expert in that market
  2. Be sensitive to the ethical implications of your investments; this is especially important when investing in healthcare or for-profit education.
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