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.
Spot on Tim. I actually considered highlighting some of the parallels between VOC and the US in this piece but ultimately decided I'd save that for another time. And you're exactly right: survival, endurance, and capital preservation come before everything else.
p.s Off topic. I am fan of Seth Godin and it seems Liquid Death founder and CEO Mike Cessario https://www.youtube.com/watch?v=iXjhNZlqexs is a A+ student or has got these ideas elsewhere?
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/
I had no idea about the SPY's structure. That's totally wild. Thanks for sharing, Hunter.
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.
Spot on Tim. I actually considered highlighting some of the parallels between VOC and the US in this piece but ultimately decided I'd save that for another time. And you're exactly right: survival, endurance, and capital preservation come before everything else.
Love reading all your articles.
p.s Off topic. I am fan of Seth Godin and it seems Liquid Death founder and CEO Mike Cessario https://www.youtube.com/watch?v=iXjhNZlqexs is a A+ student or has got these ideas elsewhere?
Fantastic video. The story of Liquid Death is great.
Fantastic piece of historical writing, connecting it to an eternal truth about the reality of "forever", relevant for both investments and narratives.
Thank you, Edward. I always appreciate your perspective - your writings have challenged how I think about time and history.
Great article!
Thanks for reading, Ilya.