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26 December 2012


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John Healy

Scary, VERY scary ... But: I am not sure the current value of the dollars quoted in the video is presented eg $5.2 Billion Super bowl ad expenditure over 46 years. Should this not be a much HIGHER number if inflation /current value is taken into account? maybe it is but it is not clear so I am left thinking it isn't. And I also wonder if there aren't a few other weaknesses in the maths. But I AM left admitting that the SIMPLE maths ARE correct - and scary, scary! As with your previous very instructive and equally illustrative annual income example, I cannot but help be intrigued to know the comparative UK/EU status illustrations. My immediate reaction to these SCARY stats is maybe we have to simply throw our hands in the air - and start again. But that can't be a sensible answer but after this Million/Billion/Trillion illustration I need to keep following your Blog to find out what we do next!

Len Karpinski

It must be fairly obvious to anyone who reads this blog that the UK is holed below the waterline. While true to form, as George Orwell noted in times past, Britain is like a large unruly family who always has the most incompetent members in control. However unlike Orwell in times of national crisis, especially after the summer riots of 2011, I cannot see this “family” pulling together through this one. I do not see some sort of violent climax as being the end. Instead I think Britain will degenerate slowly, almost in an opposite way as to how Poland has progressed to what it is like now from what it was like in 1988/89.

My question therefore is Terry, and its totally off topic, should “Fundsmith” be an investor’s primary tool to preserve his family’s wealth in the years ahead? I think I am on the right track here, as for example, a German Siemens shareholder in 1918, 1923 and 1945 would still have something of value. However he would have been wiped out if he had instead held German government bonds or Reichmarks. Away from equities for ” capital preservation” one well known investment trust holds physical gold, which I do also personally, but I cannot see the point if JPM acts as “custodian” of it. I also do not think land is of much use either as the film archives are full of footage showing the local peasantry/representatives of El Presidente telling the landlord where he can stick his title deeds.


Well, that's 20 minutes of my life that I'm never going to get back.

Wow, if we tax 500 companies, 2% of households, add some SuperBowl revenue, and sell some houses in Beverly Hills, we can't fund the US government for a year? I'm shocked I tell you, shocked.

Rather than waste my time on this, I'm going to outsource it: http://bloom.bg/U9Seyj

Terry Smith

Len Karpinski: Sadly the regulatory regime prevents me from giving investment advice. However, I agree with your thoughts and a significant portion of my net worth is invested in the Fundsmith strategy. I also hold physical gold. Like you I see little point in holding such a hedge against problems in currencies and/or the banking system in the form of an IOU from a bank or ETF.

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