Go find dictator-like investments, not democratic ones
It is certainly arguable to have such a title. Dictator-like investments? What does that mean? This comes from some fund managers who are strong proponents to ETF's.
Policies made by dictators are the most efficiently applied ones. When the dictators are "good" and "smart" ones, e.g., kings and emperors, in history, actually can facilitate their powers efficiently. In a sense, all CEO's are dictators in modern corporations. On the other hand, democratic governments usually can utilize collective intelligence and wisdom to find right paths. It is less efficient but more reliable and compounding more brainpower while dictators rely mainly on their own.
One analogy example is how the stimulus plan has been voted in the US. It had to go over the Senate, the House, and the White house. Everyone in every institute has their own stand. It is certainly a typical democratic system, even everyone agreed that the bill should be passed quickly. It finally passed with uncertainty and doubts. On the contrary, the Chinese stimulus plan was announced and in place in almost no time. This doesn't imply the Chinese government is a dicator government but you get the idea. It is much efficient the US counterpart. In terms of results, the same, no one can predict their success. So one wins time and the other lose a chance. Dictatorship does good here.
When coming to investments, our philosophy is quite similar: we want to find investments like good dictators that can make good returns instead of investing democratic-like ETF's. ETF's are consist of a basket of equities. Among them there are strong and relative weak ones. Only the strong ones contribute nicely. Instead of collecting all in a batch, we intend to be more concentrated so more efficient. Diversification can still be done at individual investment level.
Many might have come to the same conclusion. For them, it is a question of how to pick the right ones? That comes to the dictator vs. democracy metaphor at the beginning. Go find the dictator (the management) can manage well. It is really about people who run the company, not what the company itself.
That explains the title.
Policies made by dictators are the most efficiently applied ones. When the dictators are "good" and "smart" ones, e.g., kings and emperors, in history, actually can facilitate their powers efficiently. In a sense, all CEO's are dictators in modern corporations. On the other hand, democratic governments usually can utilize collective intelligence and wisdom to find right paths. It is less efficient but more reliable and compounding more brainpower while dictators rely mainly on their own.
One analogy example is how the stimulus plan has been voted in the US. It had to go over the Senate, the House, and the White house. Everyone in every institute has their own stand. It is certainly a typical democratic system, even everyone agreed that the bill should be passed quickly. It finally passed with uncertainty and doubts. On the contrary, the Chinese stimulus plan was announced and in place in almost no time. This doesn't imply the Chinese government is a dicator government but you get the idea. It is much efficient the US counterpart. In terms of results, the same, no one can predict their success. So one wins time and the other lose a chance. Dictatorship does good here.
When coming to investments, our philosophy is quite similar: we want to find investments like good dictators that can make good returns instead of investing democratic-like ETF's. ETF's are consist of a basket of equities. Among them there are strong and relative weak ones. Only the strong ones contribute nicely. Instead of collecting all in a batch, we intend to be more concentrated so more efficient. Diversification can still be done at individual investment level.
Many might have come to the same conclusion. For them, it is a question of how to pick the right ones? That comes to the dictator vs. democracy metaphor at the beginning. Go find the dictator (the management) can manage well. It is really about people who run the company, not what the company itself.
That explains the title.
posted by Intl.investment.services at
9:18 PM
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