Quantum Wealth Summary

 

  • The US shows signs of powering ahead of China post-pandemic
  • Do free and open economies have an advantage in the long run?
  • We examine a unique new approach to selecting investments
  • We analyse 3 promising stocks in free emerging economies

 

 

Everybody has a life story.

When we were living in Europe, I made a new friend.

We shared an office for a couple of years.

He had worked for a trust company on the island of Jersey and was now running his own business. His time with the trust company seemed enjoyable. The boss would routinely fly them ‘Club’ (Business Class) back and forward to London.

That’s only a 40-minute flight. Barely enough time to down your champagne.

Then things went wrong. The company was found to be non-compliant in certain areas by the regulator.

Not only was the company shut down, but details on all staff members were published online.

When those details fell down search listings, they were apparently republished.

My friend found it difficult to get another job, even though he had not been involved in the non-compliance. He’s been in business for himself ever since. And is very good at what he does.

It was this punitive, compliance-focused culture that led me to come to hate living in the UK and Jersey. It made me yearn for the honesty culture and comparative freedoms of New Zealand.

 

Signs of the times. Source: Express and Star UK

See, the punitive nature of that society was not confined to financial regulation. It seemed to touch all aspects of life.

Small mistakes can see people lose their employment and housing license, forcing them to leave the island.

Schools look like prisons with secure doors and CCTV, and playgrounds are essentially out-of-bounds due to insurance concerns.

People seem always wary. On guard.

As trust reduces, society becomes more and more rule-bound, inflexible, and authoritarian.

So I was disappointed on my return to New Zealand in 2018 to find it going the same way.

I am all for sensible regulation to protect consumers and make markets fair — but too much regulation reduces trust and make things worse.

In many industries, good people are leaving because it’s too difficult to operate a business.

Then Covid-19 came in 2020. And an already hungry bureaucracy went into feast mode.

I value freedom. Trust. The belief that 95% of people act honestly and decently.

Now, even to enter McDonald’s, I’m forced to wear a mask and scan a vaccine pass. 95% of people in Auckland are vaccinated. They know the requirements.

Before breakfast this morning, I asked the girl scanning my pass if she ever comes across anyone without a pass?

‘No. Never.’

But then there are the mandates.

Don’t get me wrong: the vaccines are a marvel of science, and the best tool we have to protect us all from the pandemic. I’ve done well from Pfizer [NYSE:PFE], and so too have our Wholesale portfolio clients.

Maybe I’m biased.

Yet there’s also a part of me that believes when governments force people to put something into their bodies to keep their job, you’ve crossed a line.

I would rather know that, when I call 111, a policeman will come. Whether he is vaccinated or not. This could now be in jeopardy.

I would rather know that, if I am sick in hospital, a nurse is available. Ideally vaccinated, yes. But I’d rather a nurse than no nurse.

Once you start mandating, you risk losing great people.

I know this.

A friend, one of the most advanced teachers of calculus around, will be forced out of work. She has her reasons.

Anyway, these thoughts and these convictions led me to an extraordinary investment opportunity. One that I want to share with you today…