Rarely do I see others in the investment business discussing stock warrants, sad but true. So I was delighted to recently come across the Q&A below with Marin Katusa and Doug Casey.
I have taken the liberty of inserting my personal comments into their discussion but otherwise their entire Q&A is presented below.
March 2, 2018
Massive Investment Mistakes and Lucrative Opportunities: Q&A with Doug Casey
By Marin Katusa
Editor’s Note: Marin Katusa recently had a question and answer workshop with legendary speculator Doug Casey at the 2018 Vancouver Resource Investment Conference. Below, you’ll find the first of their two-part interview series.
So, Doug Casey, you have been there and done that, now you’re writing books about fiction. Is that because you’re going insane or what’s going on?
Look, the reason I’m writing these novels… first, Speculator, about the mining business and you guys are basically here about the mining business… you should read that book, Speculator. And of course, now, Drug Lord which came out last year where I show that you could be a good guy and be a drug lord. Of course this year we’re going to complete Assassin which is perhaps topical because there are all kinds of anti-thought people that have actually said they want to kill Trump so we’re looking at the history and the techniques and the morality and the practicality of political assassinations. So get those books. But the reason, Marin, to answer your question, is that there are a lot of things that you cannot say in nonfiction or you probably shouldn’t say that you can say in the form of fiction. So that’s the reason.
For the record, we’re looking at ways to make this into a Netflix or Amazon series which it will be one day, and I’m a partner in that business. I expect it to do well. Doug, give me a couple of novels that you believe people should read to expand their horizons on investing speculation, geopolitics, that would help them become a better, wiser investor.
Yeah… novels are easier to read in many cases than nonfiction.
Except for the Colder War.
Well, that is definitely not fiction. It is nonfiction. I’ve been a fan of Ayn Rand ever since I read her first… Well, I started out with her nonfiction, which is excellent, but if you haven’t read The Fountainhead and Atlas Shrugged, you should actually do it because everybody talks about what they think Ayn Rand said but they don’t know. Of course, she talks about business and all this type of thing. I’d put that there at number one. But I don’t read business type fiction. Frankly, I like science fiction more than anything else because, even though I don’t have a cellphone and I find that I’m becoming a dinosaur when it comes to actually manipulating the devices that people use today, I’m a technophile and most of the reading that I do is either history or science. When I read fiction, it is generally science fiction.
Give me your two-favorite must reads….
Okay. Neal Stephenson is a genius. Anything by Neal Stephenson, you can’t go wrong with.
But my favorite by him is Diamond Age and he wrote it years ago. It accurately predicted the way, in many ways, what’s happening with nanotechnology. Nanotechnology is one of five or six technologies that are all advancing at hyper speed, faster than the rate of Moore’s law actually. You should read that book. You should read Diamond Age. You’ll really be doing yourself a favor and introduce yourself to a whole different way of thinking.
Doug, now that you’ve kind of made a bundle of money, and I do a lot of investing for you in the funds and everything we do… looking back at your career what would have been your biggest financial mistake.
Not investigating something adequately before putting money in it. Just throwing money at it because this is a big problem.
I’ve talked with a lot of other guys about this and you get lucky in a bull market. You make a lot of money, you take the money, and you feel an obligation to reinvest the money. Very stupid. Make the money and keep the money and don’t put it back on the market. The number one mistake I’ve made. Don’t do that.
Number two is don’t hold these things too long because most, not all but most, almost all, of the stocks that you will find here, even with good people and so forth, most of them are burning matches. So don’t treat them like heirlooms. When you most want to buy more because it’s gone up a lot, you should probably think about selling instead.
So that’s another mistake I’ve made. Not being a disciplined seller. Marin is very good that way. If anything he sells too soon but that’s better than selling too late. I promise you.
Doug, what about picking the right broker? What advice can you give someone in the audience about picking the right stockbroker?
Look, I guess everybody is using the Internet to execute their orders and so forth because you can do so very cheaply. The commissions are trivial when you use an electronic broker. I don’t do that actually. The reason why is that most of the investing that I do is with private placements and if you get good brokers that are really wired in this, they’re on the street and they can show you deals that your electronic account is not going to show you… and give you information if the broker is on the street and knows what he’s doing. I’m willing to pay a commission for that extra source of information.
But Doug, they are called brokers, not creators. Right? They’re going to make you broke. Ironically the brokers are probably the least qualified or least educated in the financial chain and …read more
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