Biggs's Tips for Rich: Expect War, Study Blitz, Mind Markets

[Rajiv]

Biggs's Tips for Rich: Expect War, Study Blitz, Mind Markets

Barton Biggs has some offbeat advice for the rich: Insure yourself against war and disaster by buying a remote farm or ranch and stocking it with ``seed, fertilizer, canned food, wine, medicine, clothes, etc.''

The ``etc.'' must mean guns.

``A few rounds over the approaching brigands' heads would probably be a compelling persuader that there are easier farms to pillage,'' he writes in his new book, ``Wealth, War and Wisdom.''

Biggs is no paranoid survivalist. He was chief global strategist at Morgan Stanley before leaving in 2003 to form hedge fund Traxis Partners. He doesn't lock and load until the last page of this smart look at how World War II warped share prices, gutted wealth and remains a warning to investors. His message: Listen to markets, learn from history and prepare for the worst.

[GRG55]

Re: Biggs's Tips for Rich: Expect War, Study Blitz, Mind Markets

Biggs's Tips for Rich: Expect War, Study Blitz, Mind Markets

Barton Biggs has some offbeat advice for the rich: Insure yourself against war and disaster by buying a remote farm or ranch and stocking it with ``seed, fertilizer, canned food, wine, medicine, clothes, etc.''

The ``etc.'' must mean guns.

``A few rounds over the approaching brigands' heads would probably be a compelling persuader that there are easier farms to pillage,'' he writes in his new book, ``Wealth, War and Wisdom.''

Bull market coming in rural Idaho real estate? Or maybe Waco for those less inclined to suffer the hardships of a traditional winter climate?...

[Andreuccio]

Re: Biggs's Tips for Rich: Expect War, Study Blitz, Mind Markets

Bull market coming in rural Idaho real estate? Or maybe Waco for those less inclined to suffer the hardships of a traditional winter climate?...

Question: does Waco have water?

[Andreuccio]

Re: Biggs's Tips for Rich: Expect War, Study Blitz, Mind Markets

Biggs's Tips for Rich: Expect War, Study Blitz, Mind Markets

Barton Biggs has some offbeat advice for the rich: Insure yourself against war and disaster by buying a remote farm or ranch and stocking it with ``seed, fertilizer, canned food, wine, medicine, clothes, etc.''

The ``etc.'' must mean guns.

``A few rounds over the approaching brigands' heads would probably be a compelling persuader that there are easier farms to pillage,'' he writes in his new book, ``Wealth, War and Wisdom.''

Biggs is no paranoid survivalist. He was chief global strategist at Morgan Stanley before leaving in 2003 to form hedge fund Traxis Partners. He doesn't lock and load until the last page of this smart look at how World War II warped share prices, gutted wealth and remains a warning to investors. His message: Listen to markets, learn from history and prepare for the worst.

At least 3 prominent iTulip posters have already done this. I've read posts from Jeff, Charles McKay, and C1ue discussing their preparations. I've done what limited stuff I can, given that I'm not (yet) rich. I'm still hoping Charles will let me stay on the couch at his place. ;)

Other things I've read, however, suggest that Biggs advice may not be the best if the S really hits the fan. Sorry I don't have links, but I read this stuff a while ago. They suggest that having guns and being alone may just be an invitation to the "approaching brigands" to take your guns, along with your seed, fertilizer, women, etc. Much better, according to them, to be part of a larger community that can defend itself.


Also, from what I understand, the "etc." must also include salt. I'm not sure precisely why, (use as a preservative?, dietary use?), but I've seen it mentioned as a necessity twice. Once was here, recently. I forget the poster, but they referenced some offbeat cookbook. The other was in the series "Jericho". A character who knew they would be living in a post-apocalyptic world chose the town of Jericho because it was near a salt mine. Hey, I saw it on TV. It must be true.

[zoog]

Re: Biggs's Tips for Rich: Expect War, Study Blitz, Mind Markets

This is just an observation.

When you don't have a lot of money, you worry about where future money is going to come from to pay the bills, feed your family, etc. You worry about losing your job, etc. You also daydream that if only you were rich, you wouldn't have to worry about money any more.

Since I've been at iTulip, and read the, IMO, paranoid statements by various posters here about how they've got some farmland in a foreign country, gold stashed away offshore, passports in hand, ready to flee at a moment's notice, I have come to this realization: When you do have a lot of money, you worry that someone will take it all away.

The old saying is true: money doesn't buy you happiness. Or, I think more accurately, money doesn't buy you peace of mind.

[Milton Kuo]

Re: Biggs's Tips for Rich: Expect War, Study Blitz, Mind Markets

This is just an observation.

When you don't have a lot of money, you worry about where future money is going to come from to pay the bills, feed your family, etc. You worry about losing your job, etc. You also daydream that if only you were rich, you wouldn't have to worry about money any more.

Since I've been at iTulip, and read the, IMO, paranoid statements by various posters here about how they've got some farmland in a foreign country, gold stashed away offshore, passports in hand, ready to flee at a moment's notice, I have come to this realization: When you do have a lot of money, you worry that someone will take it all away.

The old saying is true: money doesn't buy you happiness. Or, I think more accurately, money doesn't buy you peace of mind.

I guess the typical iTulip reader is loaded, then?

Your comment reminds me of the movie, "Trading Places," when Eddie Murphy's character says, "You know, it occurs to me that the best way to hurt rich people is by turning them into poor people."

Here's the link to the IMDb for the whole context of the quote (it's the first memorable quote):

http://www.imdb.com/title/tt0086465/quotes

[lakedaemonian]

Re: Biggs's Tips for Rich: Expect War, Study Blitz, Mind Markets

This is just an observation.

When you don't have a lot of money, you worry about where future money is going to come from to pay the bills, feed your family, etc. You worry about losing your job, etc. You also daydream that if only you were rich, you wouldn't have to worry about money any more.

Since I've been at iTulip, and read the, IMO, paranoid statements by various posters here about how they've got some farmland in a foreign country, gold stashed away offshore, passports in hand, ready to flee at a moment's notice, I have come to this realization: When you do have a lot of money, you worry that someone will take it all away.

The old saying is true: money doesn't buy you happiness. Or, I think more accurately, money doesn't buy you peace of mind.

I disagree.

Do you have insurance?

My guess is yes, since it's often a mandatory(in many jurisdictions) or common sense requirement.

The multiple passports every member of my family owns provides us with a bit of insurance in continued freedom of movement & residence.

Money, multiple passports, a passion for history, and a long-term family plan buys me peace of mind.

Acquiring those passports took a small amount of planning, time, and effort but are well worth it in our minds.....a very cheap insurance premium.

Our family farm wasn't purchased as a bolthole. It was purchased as a very long-term investment, allowing us to take advantage of a commodities long-boom...specifically in dairy as it's a dairy farm located in the lowest cost/most efficient dairy producing nation in the world. The fact that our energy inputs are low(100% pasture fed), our water supply is basically bottomless, and the farm's location, although close to the dairy processing facility, is 350km away by road/rail from any substantial city is a "happy coincidence". ;)

It's also a great place for my children to enjoy and contribute towards as they grow up. If an event occurs where it would be beneficial to go on an extended rural holiday farming/hunting/fishing, then we do not require reservations.

Precious Metals play an increasingly important part of my family's overall investment plan. We have been acquiring gold/silver physical and paper for almost 5 years. While we wish we had purchased more back when we started , we are happy we purchased what and when we did and contiue to do so.

I can't help but think of the story I've read here and elsewhere about how a very small amount of money two thousand years ago would have compounded into a piece of gold the size of the Sun. The main culprit as to why no one has achieved this(besides the obvious reason being of insufficient supply) appears to be occasional periods of dramatic wealth destruction.

So I tend to think of our family plan as possessing a small amount of wealth destruction insurance.

I had a mentor teach me the following:

Put 90% of your effort into managing things you can control.

Put 10% of your effort into managing things you can influence.

Put 0% of your effort into managing things you can neither influence nor control.

While there are many, many things natural, political, social, and invasive that I can neither influence nor control which would completely destroy my family's health, and/or physical/financial security I am not going to dwell on them much beyond trying to understand their potential of high probability long-term impact on my family.

My aggressive(and admittedly egotistical) goal is to lay a solid foundation for my children and their children(if they choose to or are able to) to have as much freedom of choice and movement as possible colouring within the lines of our future world.

In the meantime, we'll enjoy the slightly shorter lines in Customs, the occasional and fun full inventory of PMs, and fishing for trout and listening to the cows go "moo!"

[EJ]

Re: Biggs's Tips for Rich: Expect War, Study Blitz, Mind Markets

I disagree.

Do you have insurance?

My guess is yes, since it's often a mandatory(in many jurisdictions) or common sense requirement.

The multiple passports every member of my family owns provides us with a bit of insurance in continued freedom of movement & residence.

Money, multiple passports, a passion for history, and a long-term family plan buys me peace of mind.

Acquiring those passports took a small amount of planning, time, and effort but are well worth it in our minds.....a very cheap insurance premium.

Our family farm wasn't purchased as a bolthole. It was purchased as a very long-term investment, allowing us to take advantage of a commodities long-boom...specifically in dairy as it's a dairy farm located in the lowest cost/most efficient dairy producing nation in the world. The fact that our energy inputs are low(100% pasture fed), our water supply is basically bottomless, and the farm's location, although close to the dairy processing facility, is 350km away by road/rail from any substantial city is a "happy coincidence". ;)

It's also a great place for my children to enjoy and contribute towards as they grow up. If an event occurs where it would be beneficial to go on an extended rural holiday farming/hunting/fishing, then we do not require reservations.

Precious Metals play an increasingly important part of my family's overall investment plan. We have been acquiring gold/silver physical and paper for almost 5 years. While we wish we had purchased more back when we started , we are happy we purchased what and when we did and contiue to do so.

I can't help but think of the story I've read here and elsewhere about how a very small amount of money two thousand years ago would have compounded into a piece of gold the size of the Sun. The main culprit as to why no one has achieved this(besides the obvious reason being of insufficient supply) appears to be occasional periods of dramatic wealth destruction.

So I tend to think of our family plan as possessing a small amount of wealth destruction insurance.

I had a mentor teach me the following:

Put 90% of your effort into managing things you can control.

Put 10% of your effort into managing things you can influence.

Put 0% of your effort into managing things you can neither influence nor control.

While there are many, many things natural, political, social, and invasive that I can neither influence nor control which would completely destroy my family's health, and/or physical/financial security I am not going to dwell on them much beyond trying to understand their potential of high probability long-term impact on my family.

My aggressive(and admittedly egotistical) goal is to lay a solid foundation for my children and their children(if they choose to or are able to) to have as much freedom of choice and movement as possible colouring within the lines of our future world.

In the meantime, we'll enjoy the slightly shorter lines in Customs, the occasional and fun full inventory of PMs, and fishing for trout and listening to the cows go "moo!"

Sounds like a great spread. We'll be by to visit!

To me, wealth represents freedom and liberty; debt and poverty are degrees of slavery, causing one to be less in control of one's destiny than if one has wealth. Debt, as Hudson says, long been viewed as merely a variation on slavery, so it is always to be avoided. Loss of wealth means loss of freedom, and one should not give up one's freedom easily. Government may try to confiscate it in the future by inflation or taxation, to try to remedy past errors which will have an uneven impact on various wealth classes as the debt deflation progresses. You are, by making the investments you have made are protecting your freedom and the freedom of your family. Sounds like you have your bases covered.

[Mega]

Re: Biggs's Tips for Rich: Expect War, Study Blitz, Mind Markets

ER without trying to get anyone Nicked How (in bround terms) does one go about getting "back up passports"?
Mike

[Verrocchio]

Re: Biggs's Tips for Rich: Expect War, Study Blitz, Mind Markets

Also, from what I understand, the "etc." must also include salt. I'm not sure precisely why, (use as a preservative?, dietary use?), but I've seen it mentioned as a necessity twice. Once was here, recently. I forget the poster, but they referenced some offbeat cookbook. The other was in the series "Jericho". A character who knew they would be living in a post-apocalyptic world chose the town of Jericho because it was near a salt mine. Hey, I saw it on TV. It must be true.

Take anything you see on TV with a grain of salt, Andreuccio!

In this case, TV has led you to important knowledge. Muscle cramps and dizziness are the symptoms of inadequate dietary salt. If the day comes when you can't get it from your local Mart, then natural salt deposits, evaporated sea water, hickory roots, and animal blood are sources -- and would be essential to your survival.

[lakedaemonian]

Re: Biggs's Tips for Rich: Expect War, Study Blitz, Mind Markets

Sounds like a great spread. We'll be by to visit!

To me, wealth represents freedom and liberty; debt and poverty are degrees of slavery, causing one to be less in control of one's destiny than if one has wealth. Debt, as Hudson says, long been viewed as merely a variation on slavery, so it is always to be avoided. Loss of wealth means loss of freedom, and one should not give up one's freedom easily. Government may try to confiscate it in the future by inflation or taxation, to try to remedy past errors which will have an uneven impact on various wealth classes as the debt deflation progresses. You are, by making the investments you have made are protecting your freedom and the freedom of your family. Sounds like you have your bases covered.

Cheers!

We think of our family plan as a living document....always room for improvement. And like a classic car, always fun to appreciate what's under the hood and to try to get that extra 5 horsepower or get that extra 2 MPG.

If you ever plan on visiting NZ, shoot us a PM and we would be happy to share what we've learned(both good and bad) during our 7+ years here.

[lakedaemonian]

Re: Biggs's Tips for Rich: Expect War, Study Blitz, Mind Markets

ER without trying to get anyone Nicked How (in bround terms) does one go about getting "back up passports"?
Mike

In my experience it requires a longview plan. You cannot just throw money at the problem and receive a credible passport the following day.

If you're looking for a second legal passport tomorrow(or as soon as tomorrow as possible), your options(and the flexibility offered by the 2nd passport) are more limited.

I've heard of options in places such as Panama that offer residency/Second Passports fairly quickly. I'm sure an option such as that would be suitable for many, but it didn't make my short list when I started my plan.

What is the point of having a second passport that MAY have much more limited travel/residence options combined with the possibility of much greater document scrutiny/barriers to entry?

There ARE "more credible" nations that offer investor type residency permits(New Zealand included). Where if you have sufficient financial resources to invest(generally with varying degrees of stringent restrictions attached), you can receive residency for yourself and your family if you are able to achieve often high health and character hurdles.

To the best of my knowledge, if you have a substantial "character flaw" in your background that is on public record or if you/family member has a serious medical condition your odds of achieving foreign residency/citizenship can drop dramatically.

Real residency is also likely required wherever you go. Do not expect to continue living your existing life, fill in some forms, and sign a cheque. Authorities will likely be checking your entries/exits to ensure you are not just going through the motions to get a passport.

Also, different countries have different laws about dual citizenship...many allow it, many do not.

In my personal case, I chose New Zealand for a heap of reasons, including:

1st world
English speaking
Low corruption
Strong property rights
Zero long-term capital gains tax
Positive or benign global perception
Positive relations with major global/regional nations
Ease of travel on NZ documentation
Commodity rich
Low population density
Open economy
One flight segment in many cases, two flight segments in all cases from major regional/global economic centres.

From the time of first visit until having achieved the minimum requirements for citizenship too nearly 3.5 years(3 year minimum at the time). The bare minimum is now 5 for citizenship.

It's worth mentioning that a second passport isn't a necessity.....residency or permanent residency(requirements of which differ from nation to nation of course) is another possibility that can be accomplished in a much shorter time frame.

For JUST residency(which unlike citizenship can be revoked) things like age, health, language, education, qualifications, wealth, etc. carry varrying degrees of weight in whether you make it over the line via a work permit residency or an education permit residency as just two examples.

New Zealand for example possesses a critical needs list for people who can meet the minimum hurdles as well as possessing the relevant skillsets, so there are fairly quick residency "backdoors" available....just not for credible passports in my opinion.

And to conclude....this is just based on my experience and opinion...you need to perform your own due diligence obviously.

[zoog]

Re: Biggs's Tips for Rich: Expect War, Study Blitz, Mind Markets

Sounds like a great spread. We'll be by to visit!

To me, wealth represents freedom and liberty; debt and poverty are degrees of slavery, causing one to be less in control of one's destiny than if one has wealth. Debt, as Hudson says, long been viewed as merely a variation on slavery, so it is always to be avoided. Loss of wealth means loss of freedom, and one should not give up one's freedom easily. Government may try to confiscate it in the future by inflation or taxation, to try to remedy past errors which will have an uneven impact on various wealth classes as the debt deflation progresses. You are, by making the investments you have made are protecting your freedom and the freedom of your family. Sounds like you have your bases covered.

Well, I think it should, but... if a person has gained wealth, yet worries about losing it, how is that freedom? They remain enslaved to fear.

I apologize for derailing the thread by trying to make a philosophical observation about money and fear. Please continue discussing plans each of you have for abandoning your historically stable nations of birth / citizenship due to some impending doomsday scenario.

The Are We Doomers? poll should have included a question like this:

Do you think that the country you live in will soon reach a period where there will be tanks rolling down the street, riotous mobs storming gated mansions, followed by jackbooted government troops confiscating all personal wealth and possessions?

I think the poll results would have slid decidedly towards the Doomer end of the scale!:rolleyes:

[lakedaemonian]

Re: Biggs's Tips for Rich: Expect War, Study Blitz, Mind Markets

Well, I think it should, but... if a person has gained wealth, yet worries about losing it, how is that freedom? They remain enslaved to fear.

Do you do any boating? I'm more of a hunter myself. But I do enjoy a bit of salwater fishing(on other people's boats of course ;) ) My about boating rant is:

If I owned a large expensive ocean going yacht, I would want to ensure I have the skills to look after it properly:

Seamanship
Navigation
Weather interpretation
Long-distance Comms
Planning
Emergency management

to name but a few.

Is boating with even the most expensive boat potentially dangerous? Certainly...But the risk and danger can be mitigated partially via the skills I mentioned above and also through having a decent lifeboat in case you wind up on the wrong side of your risk management plan.

In my personal experience, fear is an inescapable emotion. Harnessing fear, rather than allowing it to cripple you is the key point of difference. Fear for my future and the future of my children and their children can be a call to action, or it can be an excuse to do nothing.

For me there is a sense of comfort, well-being, and cautious confidence in my efforts not unlike that of a boat's captain navigating hazardous waters.



I apologize for derailing the thread by trying to make a philosophical observation about money and fear. Please continue discussing plans each of you have for abandoning your historically stable nations of birth / citizenship due to some impending doomsday scenario.

I take some offense to your use of the word "abandoning".

Let's look at a more personal example.

Have you or your family ever moved WITHIN your country to enjoy better employment, better housing, better schools, better climate, lower taxes, etc.?

If so, doesn't that make you a hypocrite in a way?

Expand your boundaries beyond your community to include international boundaries.

If you still consider "abandoning ship" wrong and you are posting from the United States, your own ancestors would have done it.

Species evolve slowly to survive/thrive or perish, families need to evolve much more quickly to survive/thrive or perish.

Having placed my country above my family in serving in the military I have paid some price towards service as a citizen.

But if I see things beyond my ability to influence or control that I feel are a threat to my family's future, I have the moral right(far above any perceived national obligation) to determine another course of action for my family.

When I was a child I used to enjoy seeing professional athletes spend their entire careers in the same uniform. I was disappointed, from a fan's perspective, to see the advent of free-agency. Players, like capital, flowed to where they were most appreciated.

I don't follow professional sports much anymore as my time is stretched to cover personal and business commitments.

But I can't help but think that for the educated and prepared the next "free agency" is international migration for the lucky few.





The Are We Doomers? poll should have included a question like this:

Do you think that the country you live in will soon reach a period where there will be tanks rolling down the street, riotous mobs storming gated mansions, followed by jackbooted government troops confiscating all personal wealth and possessions?

Nope.....odds are quite low in my opinion....lower than where I emigrated FROM

I think the poll results would have slid decidedly towards the Doomer end of the scale!:rolleyes:

You buy insurance, but seem to scoff at the prospect of other people buying other forms of it.

[jacobdcoates]

Re: Biggs's Tips for Rich: Expect War, Study Blitz, Mind Markets

Trust me, I would much rather worry about losing money that I have in hand, than worry about how I'm going to pay the electric bill next month. I think people tend to lose sight the relative nature of worry. It is not that you don't have to worry at all when you have money. It's that the worries become more esoteric and removed from immediate pressing needs like running water and electricity or your car payment to get to work. If your human you will worry- imagination is all thats required for that to come about.
I tend to think of worry like poverty. Poverty is for the most part relative, it depend on who you neighbor is, or you coworkers, etc, etc. Worry(economic) works much the same way- if you lower class then you worry about rent, transportation, electricity , and so forth. Middle class you worry about college for you kids, you house payment and job loss, etc. Upper class- it seems to me( guessing, as I have never been wealthy) tend to worry about keeping there wealth, social economic status of the heirs, maintenance of family fortunes; closely tide to the second worry. But one can see that they all worry but the nature of their worries is very different, hence should be discounted is the emotional effects upon the individuals in the examples. Now don't think that I saying that the poor worries are somehow more emotionally and intrinsically valuable- just that their worry has a greater emotional impact on them. Worries need to be put in perspective of the vantage point from which your worrying. Look at some one who has worries about basic necessities most of their lives and looks at someone who worried about losing their wealth most of the lives, at age 50 the difference is quite remarkable.

Take me for example. I do not have a great deal of money. Not enough to even remotely begin to take some of the very good information offered around the site and put it to use. But I read this site, one because I'm curious and love to learn new things(almost to the point of obsession and some times a good deal past that) . But I have also found that reading the posts here helps me worry less than I otherwise would. I begin to understand some of what I see going on in the world and helps begin to piece somethings together. From my personal background it is uncertainty that causes the greatest worry for me, but what else should I expect having studied philosophy in college. Hence, I go to great lengths to calm that worry. Much like others do around here, by getting 2nd passports, remote farms, Storing PM in other governmental entities than the ones the live in. Which I really fail to understand, if the world gets that bad you can bet you last (depreciating) dollar that no government is going to have full respect for property rights, least of all people with enough wealth to stockpile PM in storage.

But that ends my rant on "worry", hope you all enjoyed it. If you didn't, sorry I can't give you back the 5 min you wasted reading it. better luck next time.