The Balcony: The Dao of Capital

The Balcony reviews The Dao of Capital, by Mark Spitznagel (2013). Vera: a hedge-fund manager's book for patient investors, on Austrian economics; the idea is the roundabout, lose now to gain later. Augie: chapter five, Henry Ford, a car every 24 seconds. Augie's objection: a fund manager talking his book, which he admits is fair. They agree on chapter nine: half a percent a month on puts, about four points a year better when markets are stretched, and not for us, he says himself. Split verdict: keep the conifer, retreat then seed the fire; keep Ford.

The Dao of Capital, by the hedge-fund manager Mark Spitznagel, argues for the roundabout: accept a small loss now to build the means of a larger gain later, as conifers do by retreating to the rocks and seeding burnt land, as Henry Ford did by pouring profit back into a plant that made a car every 24 seconds, and as a tail-hedged investor does by spending half a percent a month on puts, which beat the index by about four points a year when prices were stretched; the author admits the charge of talking his book is fair and that the strategy is not for retail investors.

On the book: The Dao of Capital by Mark Spitznagel

Starring

DotVera LindqvistAugie Castellano