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Investing for immortals

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Summary

This article discusses the concept of investing for immortals, or for a very long-term, and offers the author's proposed approach. He suggests using the Copernican Principle, betting on humans being humans, investing in businesses, and investing in liquid assets such as gold and cash in different currencies. He then goes on to discuss which investments should be avoided, such as bonds, real estate, hedge funds, art, and crypto.

Q&As

What are the main approaches to long-term investing?
The main approaches to long-term investing are the Endowment Portfolio, Harry Browne’s Permanent Portfolio, and the All-Weather Portfolio of Bridgewater.

What guiding principles does the author suggest for investing for an immortal?
The author suggests that immortals should go back to first principles wherever possible, not make forecasts, and rely on the Copernican Principle.

What is the Copernican Principle and how does it relate to investing for an immortal?
The Copernican Principle states that if you want to know how long something will be around before it ceases to exist, a good starting point is to assume that you are witnessing it at a random point in time.

What types of investments would be part of an immortal's portfolio?
An immortal's portfolio would include investments in listed equity, private equity, and 'cash' (gold and cash issued by governments).

What types of investments would not be part of an immortal's portfolio?
Investments that would not be part of an immortal's portfolio include bonds, real estate, hedge funds, art, and crypto.

AI Comments

👍 This is a great article that provides an interesting perspective on investing for immortals. The author's analysis of the different forms of investments and the way they can be used to benefit an immortal individual is comprehensive and thought-provoking.

👎 This article doesn't provide any concrete advice on how to invest for immortals. It relies heavily on speculation and makes some questionable assumptions about the future.

AI Discussion

Me: It's about investing for immortals - so, investing for a very long-term. It talks about using the Copernican Principle and investing in human creativity, listed equity, private equity, gold, and cash as a medium of exchange.

Friend: That's interesting! It's quite a unique approach to investing. What implications does this have for investing in the short-term?

Me: Well, the article argues that investing for the long-term requires us to go back to first principles and not make forecasts, as our forecasts are likely to be wrong. So, it suggests that we focus on investing in things that have been around for a long time, such as human creativity, listed equity, private equity, gold, and cash. This means avoiding investments in bonds, real estate, hedge funds, art, crypto, and other investments that may not last for the long-term.

Action items

Research the Endowment Portfolio, Harry Browne’s Permanent Portfolio, and the All-Weather Portfolio of Bridgewater to understand the strategies used for intergenerational investing.
Learn more about the Copernican Principle and how it can be applied to long-term investing.
Consider investing in listed equity, private equity, and ‘cash’ in equal measure, and diversifying within each asset class.

Technical terms

Endowment Portfolio: A portfolio of investments that is designed to generate income for a long period of time, typically for an endowment fund.
Permanent Portfolio: A portfolio of investments that is designed to provide a steady return over a long period of time, regardless of market conditions.
All-Weather Portfolio: A portfolio of investments that is designed to provide a steady return over a long period of time, regardless of market conditions.
Copernican Principle: The idea that the universe is not centered around the observer, but rather that the observer is just one of many observers in the universe.
Risk Premia: The extra return that an investor receives for taking on additional risk.
Momentum Investing: A strategy of investing in stocks that have recently performed well, in the expectation that they will continue to do so.
Value Investing: A strategy of investing in stocks that are undervalued relative to their intrinsic value, in the expectation that they will appreciate in value over time.
Data Mining: The process of analyzing large datasets to identify patterns and trends.
AI: Artificial Intelligence, a branch of computer science that deals with the development of computer systems that can think and act like humans.
Existential Problem: A problem that has the potential to cause the extinction of a species or the destruction of the planet.