I love this! US common law has a rule against perpetuities, but of course some still exist like certain conservation easements. There is also the question of how long forever is? 99 year ground leases, or 100 year bonds issues by some colleges seem to accomplish something akin to a perpetuity. By far though the most interesting is the structure of SPY which "will cease to be on Jan. 22, 2118, or 20 years “after the death of the last survivor of the eleven persons” https://www.thinkadvisor.com/2019/08/12/meet-the-spy-11-kids-with-250b-riding-on-their-lives/
VOC is much like US today as it has a near monopoly on currency and military power. I can't predict when a cycle will end as different each time. To overcome this I think insurance with a small % in bearer assets is good insurance. It is greedy of me not to get some insurance. This safety blanket allows me to invest so even if my duration and expectations are totally wrong I will survive.
I love this! US common law has a rule against perpetuities, but of course some still exist like certain conservation easements. There is also the question of how long forever is? 99 year ground leases, or 100 year bonds issues by some colleges seem to accomplish something akin to a perpetuity. By far though the most interesting is the structure of SPY which "will cease to be on Jan. 22, 2118, or 20 years “after the death of the last survivor of the eleven persons” https://www.thinkadvisor.com/2019/08/12/meet-the-spy-11-kids-with-250b-riding-on-their-lives/
VOC is much like US today as it has a near monopoly on currency and military power. I can't predict when a cycle will end as different each time. To overcome this I think insurance with a small % in bearer assets is good insurance. It is greedy of me not to get some insurance. This safety blanket allows me to invest so even if my duration and expectations are totally wrong I will survive.
Fantastic piece of historical writing, connecting it to an eternal truth about the reality of "forever", relevant for both investments and narratives.
Great article!