This blog is aimed at describing to (ahem) mature, amateur and self-directing independent investors, why and how IFO operates as an individual investor. Amateur, rather than professional, because the intent is to learn how to grow and protect one’s financial investments, using lessons from life in general as well as financial research tools.
Professional investors invest money for others using their money, with the same aim, but charging for the service. After looking at the markets’ vacillations, IFO’s view is, “You can lose money in stocks or real estate every bit as readily as a professional can and you don’t have to pay for the privilege.”
We take comfort in the fact that our portfolio usually doesn’t increase or decrease as much as the Dow on any given day. We have a pretty good annual return this year, barring any last minute plunges in the market. True, our house is neither sold nor rented, but that’s true of many real estate owners, so we don’t feel that is due to a bad call on our part. We are in good health and peaceful mood, B”H.
So what does opera have to do with all of this? We have learned much from the Portland Opera’s commentary on Mozart’s The Marriage of Figaro, which caused us to rush to our book by Will and Ariel Durant, to refresh our memories on The Enlightenment.
The opera was based on a play by Beaumarchais. The play, which was wildly popular in Paris when it opened in 1784, was considered controversial and radical. The Enlightened aristocracy and lesser nobility in France applauded the play, which made fun of them.
We assume they believed it was the other fools in the aristocracy who were being made fun of, but five years later, the French Revolution began. Not long after that, heads of the aristocracy and clergy began to roll. And the revolutionaries did not distinguish between the *good* aristocrats and the *bad* ones.
We see the Occupy Wall Street “protests” in the same light as the Beaumarchais play. Elites in the cities where the protests are taking place are ignoring the protests, supporting them, or even joining them. Fools.
Investment lesson? We’re still parsing it out. We think it may relate to this column by Simon Black, The Sovereign Man. We’ll get back to you on that.