Friday, January 08, 2010
Half Sigma mentioned the HBD investing idea but no investable ideas were mentioned. Yet I have been doing that for a decade now and my results are encouraging. I started with Lynn and Vanhanen's ground breaking book "IQ and the wealth of the nations" which I read through "Godless Capitalist", a smart Brahmin fellow founde of GNPX. Somewhere in the blogosphere cloud floats a table comparing the average IQ of nations and their (circe 2000) GBProduct. The corelation is beautiful, yet imperfect - the USA had a GNP of 55,000$ with an IQ under 100, while South Korea was a third of Japan, and the PR of China had a fraction of Singapur or Taiwan. This irregulaties are investment material. It was obvious that selling everything American and buying anything Chinese and South Korean would be rewarding. The HBD idea is playing out itself according to Lynn's book.
Lo and I looked around my table in the konditoria of Weizmann and Rothschild streets. I was sitting in one of the planet's IQ hotspots. In addition to Kinga, the pretty Hungarian waitress, we have here TEVA, Sandisk and others. We have Potash Company which was linked to POT from Saskatchewan. I watched its CEO's video messages. The man had an evil plan to corner world potash and looked decided. Mr. William Doyle is a clean cut American business leader (pic) of the times when America was young and potent, possessed that thingie called charisma, he was a leader. I put my money on that goy and he rewarded me mightily.
Conclusion: In business, as in war, IQ is nothing. Leadership, having a plan and making it happen, is all. I am searching for leaders and invest in them. My last one is Nochi Dankner, and he has not defrauded me.