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Austrian Investing

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nwagner Posted: Mon, Apr 19 2010 8:21 PM

I am interested in putting my money where my mouth is.  I am aware of some Austrian investment managers who do this (Jim Rogers, Peter Schiff).  Who are others and which investment companies are at least Austrian-sympathetic?  I am applying for entrance into an MBA program for an education in security analysis and planning ahead towards graduation.

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Chris replied on Mon, Apr 19 2010 8:34 PM

This has been posted a few times on these forums.  Rogers/Schiff/Faber have all spoken about the Austrian school and seem to adhere to their principles.  However, there is no such thing as "Austrian investing".  You can use the economic theory to understand that a government can't fix a depression/recession, what the negative effects of their actions are, and that credit expansion will cause a boom and then a bust and invest accordingly.  However, there is a lot that goes into investing.

http://online.barrons.com/article_email/SB126167812677704659-lMyQjAxMDI5NjIxOTYyNzk4Wj.html#articleTabs_panel_article%3D1

These two guys are Austrians and run a pretty successful albeit small hedge fund.

Learning real economic (austrian economics) is a great foundation for investing, but the only way you will really learn to correlate the two is to begin investing and managing your money.

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There are a few things somewhere in the media archive with some investors speaking.  Do you want someone to follow or what?

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nwagner replied on Mon, Apr 19 2010 9:10 PM

Thanks!  I did a quick forum search before I posted and didn't see another post like this, but I could've easily missed one.  Elsewhere I came across http://mises.org/media/1338 and http://mises.org/journals/scholar/Leithner.pdf (Austrian Economics and Value Investing), and Duffy will be speaking at Austrian Economics and the Financial Markets http://mises.org/events/132.  I'm looking for similar people and investment companies.  Follow?  Just putting this out there and seeing what comes back.

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Conza88 replied on Mon, Apr 19 2010 10:43 PM

Check out Hugh Hendrey... as far as I am aware.

He's contrarian.. and Jeff Tucker blogged about what he was reading (De Soto) the other day.

Ron Paul is for self-government when compared to the Constitution. He's an anarcho-capitalist. Proof.
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Mike replied on Tue, Apr 20 2010 7:25 PM

while i believe AE to be correct.. I do not believe that this knowlegde is so helpful when investing. because the markets are often antilogical. investing as an AE would lead you away from a lot of gains in booms becauese they are irrational and temporary- but you can certainly make money there. Maybe AE would/could keep us ahead of the curve a little. I was disapointed that it appears  Schiff failed to see the destruction of the EURO...

 

No doubt that being aware of what is really going on will only help you become a better investor

Be responsible, ease suffering; spay or neuter your pets.

We must get them to understand that government solutions are the problem!

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von Vodka replied on Tue, Apr 20 2010 8:32 PM

"Check out Hugh Hendrey... as far as I am aware.

He's contrarian.. and Jeff Tucker blogged about what he was reading (De Soto) the other day."

Just watched this interview of his, and he doesn't sound like he subscribes to AE at all.

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Mike "Mish" Shedlock. The portfolio for the company he works for gained 10% while Schiff's investments were failing.

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Kaju, do you have sources for that?

To paraphrase Marc Faber: We're all doomed, but that doesn't mean that we can't make money in the process.
Rabbi Lapin: "Let's make bricks!"
Stephan Kinsella: "Say you and I both want to make a German chocolate cake."

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Someone whipped out a graph about that a while ago at RPF. I don't remember where s/he got it.

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That was one (or couple) of client portfolios. There is no reason to believe that all clients lost that much. Also, has Mish proven that his company made money?

To paraphrase Marc Faber: We're all doomed, but that doesn't mean that we can't make money in the process.
Rabbi Lapin: "Let's make bricks!"
Stephan Kinsella: "Say you and I both want to make a German chocolate cake."

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nwagner replied on Tue, Apr 20 2010 9:57 PM

good timing: http://mises.org/daily/4283

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nwagner:

I am interested in putting my money where my mouth is.  I am aware of some Austrian investment managers who do this (Jim Rogers, Peter Schiff).  Who are others and which investment companies are at least Austrian-sympathetic?  I am applying for entrance into an MBA program for an education in security analysis and planning ahead towards graduation.

 

Bad News, Good News

Your type of question{s} comes up here repeatedly.

Bad News

No one can reliably, consistently predict future economic events; no "investment advisor" no economist, and yes , no "Austrian economist " "Austrian investment advisor" or "Austrian money manager" etc.

The plain fact is, the [economic] future is unknowable, and in fact a thorough reading of Austrian theory makes this apparent [Von Mises even devotes a whole chapter to this].

An MBA in security analysis will not help either. sad.

Good News

However, this does not mean that it is impossible to set up a long term savings plan that is "prediction neutral" , and that can protect your savings [i.e. money you cannot afford to lose], against a broad range of possible future scenarios, without the need to constantly buy/sell trade on a regular basis in order to try to predict where the market is headed.

To learn more, click on my user name [onebornfree] in this or any other post and review my profile link named "financial safety Rule #1", then perhaps private message me.

Regards, onebornfree

For more information about onebornfree, please see profile.[ i.e. click on forum name "onebornfree"].

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nwagner replied on Wed, Apr 21 2010 4:44 AM

I should point out that my question is about WHO and WHERE principles of Austrian Economics factor into investment decision analysis, not whether it is justified or able to reliably and consistently predict future economic events.  The list of investors mentioned in "Short the Delusion" who used sound logic to derive investment positions (positions that turned out to be lucrative) might fit the who that interests me because there could be some overlap between their logic and principles of AE.  Additionally, an MBA in security analysis would not be pursued so as to reliably and consistently predict future economic events, it would be pursued to analyze securities.

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Sukrit replied on Mon, Apr 26 2010 10:55 PM

Here are two threads at these forums:

How to profit from being an Austrian

Any Austrian financial adivisors?

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