Gyroscopic Investing

Enjoy!
https://edelweissjournal.com/pdfs/Edelw ... al-020.pdf

Hal wrote: ↑Sun Jul 25, 2021 5:49 pm Enjoy!
https://edelweissjournal.com/pdfs/Edelw ... al-020.pdf

Does Mr. Deden have any particularly dazzling investment management skills? If I check the book value returns for late 2001 to year-end 2020 at https://edelweissholdings.com/docs/EH-C ... tation.pdf it seems he has compounded his company's book value at around 8.1 or 8.2% a year on average since late 2001 or the start of 2002. Not too bad; it didn't beat a US only portfolio but since it included significant non-US stocks, gold, and precious metals mining shares a pure US stock portfolio is in all fairness not the best comparison.

but....

A blend of US and foreign index funds, gold mining stocks, gold, and a tiny bit of cash as reserves that roughly approximates the ratio of Edelweiss's mix of holdings ( see https://www.portfoliovisualizer.com/bac ... ation7_1=1 ) has an approximate CAGR of just over 1% higher than Edelweiss for similar drawdown levels (it had a circa 34% drawdown in 2007-early 2009 vs Edelweiss's 28% drawdown but on the other hand it had an only 16% drawdown from mid-2011 to January 2016 when Edelweiss had a nearly 25% drawdown).

I don't really get it.....what exactly makes Mr. Deden and Edelweiss Holdings so special? Am I missing something?

D1984 wrote: ↑Mon Jul 26, 2021 2:00 am

Hal wrote: ↑Sun Jul 25, 2021 5:49 pm Enjoy!
https://edelweissjournal.com/pdfs/Edelw ... al-020.pdf

I don't really get it.....what exactly makes Mr. Deden and Edelweiss Holdings so special? Am I missing something?

Just a different philosophy.
Have a listen to his interview. https://www.youtube.com/watch?v=a4_U6bS-cU4

There was a thread about him here. Might be worth reading that as well

vincent_c wrote: ↑Tue Jul 27, 2021 10:31 am Thanks for sharing.

Great interview.

Everything up to 1:39 was about his investment philosophy which is to basically invest as an owner of the business and not as an investor. Essentially mark to market price is more of a distraction when time preference is generational.

I am sure I would be called old-fashioned but I am always a sucker for people like Deden who feel that the modern concept of investing has lost its meaning. There is something more comforting and stable about the concept of buying a stock because you want to own a piece of a business, not just an asset to take advantage of price swings. Perhaps it takes me back to when I was a child and bought my first stock in MGM. It made me feel like I owned a piece of something. The PP or other risk parity portfolios certainly don't do that. Buying index funds, bond etfs, gold etfs all to take advantage of rebalancing price swings is not exactly gambling on meme stocks but there is something a bit unfulfilling about it to me. I recently read something by Michael Williams who claimed that the stock market became distorted when society began placing their retirement strategy completely on its success.

If I truly was investing for generational wealth and not my own need to stop working in a few years, I would just be buying a handful of stocks I really liked and holding on for my children and their children.