Fascinating Thought Exercise
From @ Chris Bloomstran on Twitter. In this section of my post here will be Chris's thread. My list down below.
You have $100 million that you have to invest in a single asset for 246 years. The beneficiary requires 2% of the ORIGINAL CAPITAL per year. What do you own and WHY? Would you own a different asset if the required distribution were 0% per year? 5%? Options:
1. Pound Sterling 1/Sterling is the oldest currency still in use. ~928 AD.
2. Russian Ruble. 2nd oldest, though with different iterations.~1700 or 1998.
3. US Dollar. 3rd oldest. 1776
4. Japanese Yen. 4th oldest. 1871
5. Gold
6. Silver
7. Prime Farmland (specify where)
8. Prime Ranchland/Cattle (specify where)
9. 30-Year Governments. Can roll at maturity. Specify country.
10. 90-Day Governments. Can roll. Specify country.
11. Apple (stocks have dividends reinvested in shares or finance distribution)
12. Microsoft
13. Google
14. Amazon
15. Tesla
16. Berkshire Hathaway
17. Costco
18. Nestle
19. Vanguard S&P 500 Index
20. ARKK
21. Bitcoin
22. Ethereum
23. MicroStrategy
24. Monet Impression, Sunrise 1872
25. Government TIPS (specify country and maturity. Can roll).
26. Diamonds
27. Other. Specify.
No taxes/fees.
1. Farmland in New Zealand or maybe Uruguay
2. Geothermal Energy Source
3. Cattle in the Northern Mountain Time Zone
4. ARKK
Joking
5. What about crypto?
If crypto actually does end up being the answer, ok, but it is not clear to me that the one that could be the answer exists yet so going with Bitcoin today, not sure it has 246 years left in it.
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