Intellectual Capital

More than half of the IMF's borrowers between 1965 and 1995 were no better off than when they started. A third were actually poorer. Almost all were deeper in debt. - FORTUNE, 25 May 98

You have no control over the hand that life deals you, but how you play that hand is entirely up to you. - Voltaire

Entering the 2nd & final year as a Chevron Gas Station Jockey. The choice to work in a healthy outdoor environment [for a great family - small business] where one is not subjected to wearing toxic plastic face diapers or injected with graphene oxide has been advantageous. Primary goal was Staying Power [Sam Zell].

Despite the myriad of information out there to change one’s life it appears few are disinterested in considering the math behind moving the needle.

One Can Build their Own Personal Intellectual Capital & Royalty Company.

Coming from Behind > The Literal Gutter > Front Runner provides a diary of mental, physical & psychological changes to vastly improve our current circumstance.

Caveat > Front Runner Publication is CAUTIONING those considering our strategy as  the writer has failed as a financial advisor upon losing his mind going over the falls in resource stocks. Despite 10 years of positive activity drinking & self indulgence led to a most unhealthy Victim behaviors. No amount of discussion on past challenges are acceptable excuses for losing the focus as a prudent steward of client capital.

Past 7.5 years of living on a bicycle and in uncomfortable situations to ensure personal P&L [internal balance sheet] remains positive has been a gift.

Front Runner aims to identify ways in which the small Ronin Warrior can capitalize on the distortions in our debt based financial system. Cycles are significant and we can have the ability to use storms to our advantage to RIDE THE WAVES - CURRENT MACRO OUTLOOK > PROVIDED.

Charlie Munger & Warren Buffett describe all this as ‘The Fat Pitch.’

Life is a School of Probability. - Walter Baghot

Windows of opportunity exist for those who patiently wait -

All great investors use Volatility [Waves] to their Advantage -

Past experiences in corporate fixed income from NYC wire-house desks helped us conceptualize the massive psychology in a 42 year old bull market.

The Opposite of Promises to Pay is Payment in Full.

>>> Sharpening the Saw >>> Last 2-3 years have had a review of the plan to use the junior resource markets as leverage to build capital.

Largest Dynamic appearing overlooked has been massive decline in exploration expenditures over the past bear market - one accurately described as a nuclear winter by David Garofalo.

CONTRARIAN PHILOSOPHY > WE SEEK UNUSUALLY HIGH QUALTY WHEN QUESTIONS CURRENTLY OUT OF FAVOR TO MOVE THE NEEDLE.

Every day the world’s mines become depleted. As Robert Friedland accurately stated “Assets are Ephemeral” -

Sole risk exploration companies most often benefit the promoter or lifestyle of Management.

Past experience has helped us to identify what was once Brazil Resources now GoldMining, Inc to be our largest holding. This company is currently trading at a negative net enterprise value [less than companies spun off as holdings on the balance sheet].

This post is about the process of building our own intellectual capital company-

The market has discounted to scrap current optionally holdings much less drilling data costing past companies millions of dollars > data in the ground essential for discovery & process.

Regard our personal asset we have for real estate assets already in play.

Robert Kiyosake’s Rich Dad teaches essential concepts regarding the quest for financial independence:

1. The poor and the middle-class work for money. The rich have money work for them.
2. It’s not how much money you make that matters. It’s how much money you keep.
3. Rich people acquire assets. The poor and middle class acquire liabilities that they think are assets.
4. Financial aptitude is what you do with the money once you make it, how you keep people from taking it from you, how to keep it longer, and how you make money work hard for you.
5. The single most powerful asset we all have is our minds. [1]

Respect for former USMC R.K. & his projects to help lift many out of feudal serfdom.

Points 3 & 4 can be best refined thru a thorough read of ‘The Intelligent Investor’ by Benjamin Graham [Warren Buffett’s teacher].

Understand his love for ‘real estate’ & his strategy has worked well during the huge securitization boom throughout the western financial world.

A major hero and legend Sam Zell displayed caution thru action over the past 5 years selling over 80% of his portfolio and buying gold producers for the 1st time in his life:

This has always been a fatal flaw in U.S. real estate: the volume of development has been related to the availability of funds, not to demand. 

- Sam Zell

Secular market shifts / changes can produce immense wealth for smaller players who understand the structural reasons [fundamental supply / demand].

There are three phases to every market process. James dines and others 

Mass Psychology - Dines

Process vs Perfection

Enjoying what was once considered pain to be a blessing.

Morning surf prep -

Walking / jogging > 

Seeing Cycles > Emotions are the death of Wealth. Embracing Distortions.

Get some capital - Learn Skin in the Game

All great investors embrace volitility

Contrarian > People must hate EMX - do math.

[1] Book Summary by Samuel Thomas Davies