Season Investments



Wimpy Economics

Our modern society believes that pain and sacrifice are unnecessary evils that can be alleviated by borrowing from our future prosperity. We can think of this as Wimpy economics since we would “gladly pay you Tuesday” for a hamburger today.

The Best of a Terrible Set of Choices

The US Treasury has just announced that it will sell its remaining 234 million AIG shares in its sixth offering since the rescue, thereby securing a $4.1 billion profit on its investment in AIG stock. But while the economic tethers of the bailout will soon be cut free, has the success of the AIG bailout created a slippery slope for future bailouts?

The Patience of Taleb

Nassim Taleb made his fortune with an uncanny willingness to lose small amounts of money the majority of the time in order to collect a huge windfall over short, punctuated “Black Swan” events. We see XVZ as having similar characteristics to Taleb’s strategy, and therefore believe it demands patience and a long time horizon in order to prove its investment merit.