Philosophy
If you landed on this website looking for a way to get rich in no time, we need to disappoint you and suggest you look elsewhere for some trading service.
Instead, at Econopiniones ® our focus is on preserving wealth for generations to come and thus we maintain a long term perspective.
We use a value approach to stock market investing and we look at macro-economics including monetary policy through an «Austrian School» lens.
Moreover we keep a keen eye on geopolitics. We constantly try to spot and anticipate so called black swan events.
While we cannot avoid various sorts of troublesome events such as depressions, revolutions, wars and confiscations from taking place, we endeavour to be prepared as best as possible in order to mitigate their impact on our lives. Awareness of history is crucial for this. In this context it may be relevant to lift the veal a bit on the family backgrounds of our founders.
The great-grandfather of our Head of International Trade was the owner of a large farm in an Asian country on which he employed many workers. After a regime change all the land was confiscated. He was lucky to still be left with the house, but suddenly he had no more revenue to pay for his living expenses.
Our Chief Economist’s great-grandfather was a successful entrepreneur in ship repair in a major port in Western Europe. In 1940 he rushed to repair an important foreign client’s vessel and subsequently sail it to the UK, with all his family (including his pregnant daughter) aboard as refugees, just days before his home country surrendered to the invading Nazi’s. While living in Wales, where his grandson was born and raised, our hero received monthly payments from the ship owner, who was grateful that his major capital asset had not fallen into enemy hands. But upon return to the mainland in 1945, there was nothing left of the erstwhile flourishing ship repair company after bombing of the harbour. In those days there was no pension system. Fortunately the formerly successful entrepreneur had some savings… in gold coins, which had pretty much kept their purchasing power, unlike stocks of companies, many of which had gone out of business in the Great Depression, or bonds from meanwhile bankrupt governments.
Econopiniones ® founders are very much aware that sudden unexpected (geo)political events such as war and confiscation may completely destroy a productive and frugal family’s long term life plan.
Suddenly certain investments may no longer be as safe as previously assumed, whether through purely economical conditions such as a depression resulting in both corporate as well as government bankruptcies or due to war or revolutions. Even real estate may turn out not to be as safe as previously deemed, when it suddenly gets nationalised after a regime change*.
Please be advised that our founder’s own decision to relocate to Uruguay was not a whim, but instead based on analysis already back in 2010 on the domestic troubles ahead for the EU (indeed years before the Bataclan and Zaventem Airport attacks) and reconfirmed by the developments in Ukraine in 2014 of which he feared it would lead to a further escalation. While it all took a few years longer than he had anticipated to play out, unfortunately it appears his fears were not as far-fetched as most people thought they were, back then.
Econopiniones ® financial strategies are not about chasing the latest investment fad (which probably becomes a bubble and ends in a crash)**, yet about preserving wealth for generations to come. In this context diversification is key – not just across companies, but across asset classes and jurisdictions as well.
Btw, this includes selection of solid banks, after studying their annual reports as well as precious metal storage facilities. After all: who do you trust as a custodian of your assets? Upon request we can also provide opinions on this aspect.
At Econopiniones our long term goal is to help clients to preserve their wealth in order to be able to transfer it to the next generation. And through preparedness we aim to achieve our clients’ invaluable intermediate term goal: achieving peace of mind.
As George Washington once famously said: «We cannot guarantee success, but we can deserve it».