Sunday , February 23 2020
Home / FT Alphaville / Would Stalin’s pension fund manager invest in bitcoin?

Would Stalin’s pension fund manager invest in bitcoin?

Summary:
According to GMO’s Jeremy Grantham, there’s nothing like the fear of death to stop an investment manager from becoming too complacent in an era of overall investment mediocrity.On that basis, why not think the way Stalin’s pension fund might have to?Here’s the thought experiment outlined by Grantham in his latest research note (our emphasis):Joe Stalin has appointed you to a well-paid cushy job looking after his substantial pension fund. Do well enough and you will receive Black Sea privileges, a dacha outside Moscow, and a good pension. Do badly and you will discover that Stalin has a nasty temper. In fact, you will be shot. Conveniently, Stalin, who likes precision, has defined a very precise benchmark: 4.5% real for 10 years. (He understands that 4.7% real is considered the “normal”

Topics:
Izabella Kaminska considers the following as important:

This could be interesting, too:

Alexandra Scaggs writes Thought for the weekend

Sujeet Indap writes Jonathan Knee explains 25 years of Wall Street’s evolution

Paul Murphy writes The Beaufort sting

Thomas Hale writes The green multiplier effect

According to GMO’s Jeremy Grantham, there’s nothing like the fear of death to stop an...

Izabella Kaminska
Izabella Kaminska joined FT Alphaville in October 2008, which was, perhaps, the best time in the world to become a financial blogger. Before that she worked as a producer at CNBC, a natural gas reporter at Platts and an associate editor of BP’s internal magazine. She has also worked as a reporter on English language business papers in Poland and Azerbaijan and was a Reuters graduate trainee in 2004.

Leave a Reply

Your email address will not be published. Required fields are marked *