There are plenty of challenges yes, but haven’t there always been? And we get to see and use and enjoy such incredible new tools such as AI.
A lot of the current news suggests that AI can be dangerous… as have been so many inventions such the auto (we lost our legs and our lungs), the airplane (we lost the sovereignty of borders), nuclear power etc. etc.
I am sure that AI will be used in numerous destructive ways.
Yet there are benefits. I’ll share just one in a minute.
First for value investors, the April 2023 Pi Keppler Developed Market Value Strategy is here, www.kamny.com/wp-content/uploads/DM_Update_2023-03-31.pdf
The emerging market strategy here, www.kamny.com/wp-content/uploads/EM_Update_2023-03-31.pdf
Back to AI
I’ve been asking myself “how AI will change our lives” and have been researching this question. I don’t think I am close to imaging the change that will come, but I have an example.
I’ve been cleaning out decades of junk from my residence in Florida. In this process, I found the original blueprints for the house drawn in 1947, in the back of a cupboard.
The previous owner, who grew up in the house, had explained to me that the house was designed by Frank Lloyd Wright. I was never able to verify this fact so wrote off the thought as “family legend” which is not always accurate.
Here’s one of the eight pages of blueprints.
These prints conformed that Earl W. Ohlinger was the architect, not Frank Lloyd Wright.
But I wondered, “is there a connection between Ohlinger and Wright”?
I used numerous search engines to find a link. Nothing came up.
Then I tried ChatGBT and immediately found a huge amount of information, such as this.
A bit more research at Chat revealed that Mrs. Hatfield and Earl Ohlnger’s wife were both from Brooklyn and both graduated from Cornell University in 1937. That’s a likely connection along with the fact that Ohlinger the architect was working with Frank Wright on Wright’s numerous project at Florida Southern University, just 62 miles from the University (FSU has the largest number of FLW designs in the world), in 1947 when the house was designed.
Here’s the point.
AI makes internet searching much more effective for the common man.
I am sure that there are many additional society changing benefits that will come from AI. What they will be are conjecture and speculation for now, but I can confirm that my experience shows that “AI makes internet searching much more effective for the common man”.
Onto Inflation
This inflation we are seeing is no surprise to me. I certainly expected and prepared for it.
Here’s how I have positioned my time and resources in the hopes that I’ll not only survive but benefit from inflation.
My asset breakdown is:
Precious metals 5%
Good Value Global Equities 10%
Cash in dollars 10%
Residence 15%
Farm land 15%
Rentals 45%
Most of the rentals are in or near Mt. Dora Florida.
You can see why I am heavily invested in Mt Dora here
The large percentage of cash (about seven years worth of my personal expenditure) would seem high in the “cash is trash” scenario we currently live in, but there are numerous reasons why I hold so much cash.
#1: I can use the liquidity to take advantage of any distress opportunity if I see an equity, property or other asset that represents extra good value.
#2: Durability and protection. If the existing inflation fighting assets I have drop in price short term, I’m not forced to liquidate at a loss.
#3: Ease (and this is important to me at 76 years of age). I don’t have to spend so much of my time monitoring cash flow, asset distribution and such. I have other more interesting things to do.
#4: Income! Finally cash pays interest again! Cash income is steady income I can depend upon.
#5: Tax benefits. I keep the majority of my cash in my 401K pension. I can live nicely on my annual minimum required distribution so any extra income builds on a tax deferred basis.
At this stage a big part of my tax strategy is to direct income into deductible investments in capital appreciating assets. This reduces income tax, shifts income tax into capital gains tax and because the price of these assets (most rental houses) rise with inflation, I protect purchasing power.
Most Important of all
I direct as much of my business and investing activities into areas that I enjoy.
The farm land is being used for sustainable food and timber.
I enjoy farming. Watching those seeds turn into food is a continual source of amazement and joy.
Improving the forests and getting tax deferrals and income from the timber is part of the plan and I might (taking events as they come) turn some of the timber into lumber and build another cabin or two. Working in the woods and in construction is fun (for me).
I love looking at, buying and improving houses.
These are all healthy and low stress activities for me. Time is a reducing asset. Use it to its maximum!
This seems to ave worked for me. Despite living in what could be viewed as a stressful situation through more than a half decade, all of my health vitals remain normal. You can read more on the health benefits of turning your passion into profit in my Shamanic Healing Secrets report available at Amazon.com
These are the best of times. These are the worst of times. Just as they always have been. Take the best in a way that protects you from the worst as much as possible.
Gary
