Inspirational Film of the Week (September 24, 2015)

The following videos will continue along the theme of risk vs. reward, which I have been emphasizing greatly over the last few months. I am also tacking on some additional educational material, the same ones that I have referred to friends and family. I believe these videos will be very beneficial to readers, as they are among some of the best that I have uncovered across the web.

As an early FI centric blog, for the most part, I’m going to stick to the investing side of things (e.g. what I’m buying, my thoughts, strategies, etc.). Obviously, I don’t have a crystal ball, so readers should take anything I say with a grain of salt and process it through their own internal filter.

I’ve been wrong on many investment decisions made in the past. And I will continue to make mistakes into the future…

What I try to do above all else, though, is this — I’m a student who is always seeking to learn.

Here’s a wonderful, succinct video of “How the Economic Machine Works” as described by Ray Dalio. It’s very easy to understand, animated (yay!) and short and sweet.

Most people you run into on the street have no idea what The Federal Reserve really is. I love cartoons, so here’s another well-animated video by Mike Maloney. This series (and especially this episode) have been a huge hit on Youtube!

If you really want to learn more about The Federal Reserve, please turn to G. Edward Griffin, who knows more about this subject than perhaps any other individual out there. Mr. Griffin wrote the excellent book, The Creature from Jekyll Island. Another video I would highly recommend watching.

Stanley Druckenmiller is arguably the most successful and brilliant hedge fund manager alive today. He helped George Soros’ Quantum Fund make billions of dollars when they shorted the British pound in 1992.

From Wikipedia:

Duquesne Capital Management posts an average annual return of 30 percent without any money-losing year.

If anyone understands investing and the concept of “risk vs. reward”, it’s this man.

You don’t have to agree with everything Mr. Druckenmiller is saying, but I love his point about looking into the future. The best investments made are ones that are forward-looking, not the ones focused on the news, headlines, and prices of today’s marketplace.

Recently, I’ve been placing my bets on the speculation that gold and silver mining stocks will soar in the upcoming future. Who knows? I could be dead wrong, but I gotta say that I love my odds for success because of how discounted mining shares are today…. The risk vs. reward profile has to be in my favor, if history is any indicator.

Peter Schiff is one of the more well known goldbugs; I don’t agree with everything he says (I happen to really like holding U.S. dollars), but I obviously agree with his assessment that gold mining shares are deeply discounted right now.

And sometimes, the right trade is the lonely trade… The trade that few other investors want to touch. But I gotta give Mr. Schiff a lot of credit for calling the subprime mortgage crisis of 2008. He had been predicting the demise of the housing bubble for many years… 2005, 2006, 2007, 2008…

You can be right on the thesis all day and night long, but as we all know, timing the exact “when” part of it is anyone’s guess…

But better a year too early than a day too late!

Here’s an eye-opening video with snippets of Mr. Schiff’s many interviews on mainstream media before the crash, where he is routinely laughed at and ridiculed.

So, I learned long ago not to give in to public sentiment and I never listen to the talking heads on TV (they are oftentimes wrong and oblivious to what’s really going on in reality).

Here’s a great speech made by billionaire Rick Rule back in 2013, urging resource investors to stay the course as share prices collapsed and everything went on supersale. Unknownst to investors back then, mining stocks would continue to fall another 50%+… Talk about brutal! Mining stocks are perhaps the most hated sector on Wall Street today… and have been since peaking in 2011.

So, it definitely takes a lot of guts to invest when times are bleak… Way back when, Mr. Rule doubled down on a $0.01 uranium penny stock, Paladin Energy, based in Australia. When all appeared lost, Paladin would go on to surge to $10.00.

Billions have been made by investors speculating in the resources space. But you have got to get in at the right time… That’s the greatest challenge with this sector.

Anyway, it’s always a good idea to keep an open mind.


All the best!

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4 years ago

thank you for posting these videos. Very informative!