Ben Graham also lived before the closing of the gold standard. The possibility of infinite growth priced in dollars was impossible without sucking capital from somewhere else. So selling was a very different thing back then. There is the risk that even though the government will always try to print its way out of it and everyone around the world, that they also mint only principal and not interest so economic collapse is theoretically possible. If you don’t think the government will come in and increase the money supply by even more after the collapse or that chances of collapse are particularly high you maybe could justify having some downside protection. Sort of the risk is that everyone realizes this now at all time highs and that there is another Great Depression or in Japan where they did everything modern monetary told them and it never recovered. I don’t think that’s likely but I don’t like the risk of complacency when people ignore the intrinsic value and focus primarily on extrinsic value or whatever you want to call growth potential.
Mr. Pabrai is AMAZING. So humble... Great moustache! Looks the KING of India! 🙂
Ben Graham also lived before the closing of the gold standard. The possibility of infinite growth priced in dollars was impossible without sucking capital from somewhere else. So selling was a very different thing back then.
There is the risk that even though the government will always try to print its way out of it and everyone around the world, that they also mint only principal and not interest so economic collapse is theoretically possible. If you don’t think the government will come in and increase the money supply by even more after the collapse or that chances of collapse are particularly high you maybe could justify having some downside protection. Sort of the risk is that everyone realizes this now at all time highs and that there is another Great Depression or in Japan where they did everything modern monetary told them and it never recovered. I don’t think that’s likely but I don’t like the risk of complacency when people ignore the intrinsic value and focus primarily on extrinsic value or whatever you want to call growth potential.