Received the latest Patient Capital letter this week. This is a boutique Toronto-based value fund run by Vito Maida. One of the few capital managers that didn’t get completely mauled in the 2008 Global Financial Crisis.
In itself, that’s instructive: Maida’s investing career spans over 40 years, he started Patient Capital in 2000 so he’s seen the odd bear market. Contrast with say, a Ross Gerber, who started his fund in 2010. While Gerber was somewhat of a wunderkind prior to co-founding Gerber Kawasaki, since inception his fund has only known one prevailing market condition over its entire history: straight up. So it is understandable why a Gerber would be überbullish on things like FAANGs, on Tesla, and on pot stocks.
(Read on Medium)
“Any corporation, private or governmental, that wishes to provide for a sound and equitable continuity of its business must take steps towards the systematic retirement of debt immediately after it has been incurred. Postponement of all payment for property or privileges by those who presently enjoy their benefits is calculated to bring uncomfortable consequences to them or those who succeed them.”
— Engineering Economics, by C.R Young. 1949
We frequently hear pundits and talking heads talking about how short-sighted government policies and unfunded entitlements are in essence “stealing from the future” or at best “borrowing from the future” and I found myself thinking about the difference between the two ideas.