Is Blockchain the Biggest Wealth-Creation Opportunity!

Episode #104 | May 30, 2019

Episode #104 | May 30, 2019

Is Blockchain the Biggest Wealth-Creation Opportunity!

In This Episode

Dan leads off with a shorter Rant segment this week, about how hard it is to do short-term trading because of all the big traders with billions of dollars that you’re competing against in the market. He says it’s as hard as trying to open an online retailer to compete against 

Investors can profit from actively investing their own money, but they need to be more long-term oriented.  Dan also shares the “Coffee Can” story written by Robert Kirby back in 1984.  It’s all about how an investor followed his adviser’s buy recommendations, but not his sell advice… and wound up making a huge amount more money as a result of holding good companies for the long term. 

In our What’s New segment this week, game software provider Zynga is selling its San Francisco headquarters and making $600 million—a ton more money than it’s made on its real business.

Then Dan runs through a few “macro” bits in the news, suggesting that volatility is likely to increase over the next three years. Dan shares some personal research he did on the VIX, which he believes indicates that, the farther the VIX gets below 15, the more it resembles a “coiling spring,” set to soar. 

Different articles, including one in the Stansberry Digest, suggest safe haven stocks like large-cap dividend payers and utility stocks are set to disappoint investors. 

Lastly in What’s New, Dan shows how Amazon might attract regulatory scrutiny – including those calling for a breakup of the online giant – by eliminating “mom and pop” suppliers where it spends $10 million a year or less. 

This week’s interview is with asset manager Mark Yusko.  Mark is the CEO and Chief Investment Officer of Morgan Creek Capital Management, LLC, a registered investment adviser formed in July 2004 to provide investment management services based on the University Endowment Model of investing to wealthy families, individuals and institutional investors. Morgan Creek currently has $ 1.6 billion in assets under advisement in non-discretionary accounts and discretionary funds. Prior to forming Morgan Creek Mark served as the Chief Investment Officer for the University of North Carolina where he founded the UNC Management Company providing outsourced investment management services to select schools within the UNC system. Prior to joining UNC Mark was the Senior Investment Director for the University of Notre Dame Investment Office where he joined as the Assistant Investment Officer. Mark is a fascinating guy, with an encyclopedic mind.  He discusses his background in managing university endowments.

Mark has an encyclopedic mind.  After describing his background and current business at Morgan Creek, Mark holds forth as only he can on a number of interesting topics.

One of the most interesting things about Mark is that he’s a highly value-oriented investor who is also very bullish on bitcoin.  Many value investors think bitcoin is a fad and won’t exist one day.  Mark says he’s “super long” bitcoin in his portfolio and believes blockchain technology is the biggest wealth creation opportunity he’s ever seen in his career. 

Along the way, Mark comments on gold, sound money, banking, the fascinating history of accounting (yes, it really is fascinating) and much more.  There’s only one way to appreciate an interview with Mark Yusko. Sit back, relax and listen to every word of it.

In the mailbag this week, Dan reads emails from Matthew S., Jeanne S., Steve H. and Al M.

Dan let’s Matthew know he sounds like he’s doing a good job, tells Jeanne that she’s spot-on about the kind of guests he’s looking for, applauds Steve’s excellent comments about bitcoin and agrees with Al that bond ETFs could blow up if investors sell them aggressively enough.