No. of Recommendations: 7
If you move everything out of the US (cleanest dirty shirt at the laundry, best looking horse in the glue factory, etc..) are you really protecting yourself?
No, not really. For all the reasons that Marks said.
Here is what Marks said (emphasis mine):
"Most institutional investors have been heavily allocated to the U.S. to date, with great success, and the reasons for that – the free-market system, pro-business climate, economic vitality, spirit of innovation and adaptability, technological and managerial expertise, rule of law, moderate regulation, excellent higher education, strong capital markets – largely remain intact. In my opinion, no other country possesses these things to the same extent.
He cites a long list of characteristics that have, and will, benefit U.S. over foreign markets in the future:
Free-market system
Pro-business climate (particularly recently during Trump administration)
Economic Vitality (AI, energy dominance and independence)
Spirit of Innovation (AI, Silicon Valley, risk taking)
Technological and managerial expertise
Rule of law
Moderate regulation (less under Trump)
Excellent Education (I'd challenge Marks n this one)
Strong Capital Markets
Buffett and Munger have spoken about this ad nauseam.
