Road to Ruin by Jim Rickards
I read the the book The Road to Ruin by James Rickards and found it very insightful in respect of the current global financial situation
The major learning points from this book can be summarised as follows
- there is a likelihood of another much larger financial crisis and we need to be ready for it
- there could be a lock down or freezing of the money in the financial system
- An insight in preserving wealth came from an Italian family who has remained wealthy over 900 years in these troubled times- buy the things that last like income producing property, art(museum quality) and gold – a very interesting concept which has an interesting truth about it – you will also need a business on the side to bring in cash to pay for necessities
- James recommends an all- weather portfolio if the above freeze sets in as follows;10% gold,30% cash,20%Real Estate, 5% fine art,10%venture capital,5%hedge fund,10% bonds, 10% stocks
The lesson which I am going to teach my kids is to buy some gold coins and by doing this I will teach them what gold is about and what it means to hold it as essentially it is money and not an investment as it has no risk or return but it is a hedge against inflation- will be trying to teach them all these concepts