What Would Ron Paul Own?

By: Jeff Berwick | Thu, Dec 22, 2011
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When looking for guidance in life people have been known to ask, "What would Jesus do?" After all, Jesus was an anarchist and very principled so it makes sense to look to someone like him after which to model their life.

Today, the closest thing to Jesus in American politics is Ron Paul. Paul is a rarity in politics because he has principles. You can boil down Paul's position on anything by asking, "is it constitutional?". He doesn't flip flop on issues because he sticks to his principles. Does he support the IRS and income tax? No, because it's unconstitutional. Does he support the Federal Reserve and the fiat dollar? No, because it's unconstitutional. And, the reason he believes in the constitution is because he believes it is the best document written to uphold freedom and liberty.

So, when Ron Paul recently released the contents of his investment portfolio ("The Ron Paul Portfolio") as part of his congressional filings we looked on with interest. Would his investments be as principled as the other facets of his life? Would he hold to his convictions about gold as money? In this case, it isn't "What would Jesus do?", it is, "What would Ron Paul own?"

THE RON PAUL PORTFOLIO

An unprincipled person is a person who is essentially adrift, with no anchor by which to hold them steady. They float about, being whisked one direction or another without a core belief system to base all of their actions upon. Your typical member of Congress isn't principled. Their vote goes to the highest bidder on almost any subject. And so it comes as no surprise that their investment portfolios are, on average, directionless and unprincipled. And poorly performing as a whole.

According to the Wall Street Journal, "Give or take a few percentage points, a typical Congressional portfolio might have 10% in cash, 10% in bonds or bond funds, 20% in real estate, and 60% in stocks or stock funds."

Compared to this, they state, Ron Paul's portfolio is "shockingly" different.

What does Ron Paul own? Other than real estate and some cash, the majority of his holdings are in gold and silver mining stocks. 64% of his portfolio is in mining stocks and 5% of the total is in Canadian based junior mining stocks.

In other words, his investment portfolio mirrors his principles. He believes that gold and silver are money and he is heavily invested in them and the companies that produce the precious metals - as are we.

RON PAUL VS. CONGRESS

So, how is Ron doing with his portfolio compared to the rest of Congress? If we assume he's held these positions for the last decade and that congress has done the same, let's see who has performed better.

Gold and Gold Stocks versus DJIA and 20-Year Bonds

Over the last decade, Ron Paul's portfolio has outperformed the average "stocks and bonds" held by congress by a factor of 5 to 10 times.

But, as it does, the mainstream media went out and found a typical government registered investment advisor for his thoughts on Paul's portfolio. Quoting the Wall Street Journal:

"William Bernstein, an investment manager at Efficient Portfolio Advisors in Eastford, Conn., reviewed Rep. Paul's portfolio as set out in the annual disclosure statement. Mr. Bernstein says he has never seen such an extreme bet on economic catastrophe. "This portfolio is a half-step away from a cellar-full of canned goods and nine-millimeter rounds," he says."

It's a good thing Ron Paul doesn't listen to government trained financial advisors for his investment advice! Ron's investment portfolio has outperformed the "status quo" handily for a decade... and if Paul is smart, he would have extra food on hand and some guns for when this statist, anti-capitalistic monetary system collapses.

IF YOU CAN'T IGNORE, DISCREDIT!

The mainstream media has been trying all it can to avoid Ron Paul but it is getting harder and harder to ignore him. But even the brainwashed, sedated American populace may notice something wrong with their coverage, when Mitt Romney can come in both first and second in a recent New Hampshire primary.

New Hamshire Primary

And so, now that they are forced to acknowledge his existence they have reverted to trying to discredit Paul. They say he is paranoid for investing his entire portfolio on the basis that the monetary system as we know it is in a state of collapse. They say he is shockingly different than his congressional counterparts.

We say, he is the only sane man in the room. When it comes to investing, ask yourself, what would Ron Paul own?

 


Interested in investing like Ron Paul? Subscribe to The Dollar Vigilante Premium newsletter. Ron Paul has a significant portion of his portfolio in major gold mining stocks that we cover and the Canadian based junior miners as well. TDV covers all aspects of the world's geopolitical and financial events. Or, subscribe to our new TDV Golden Trader if you want a trade alert service on these types of stocks.

 


 

Jeff Berwick

Author: Jeff Berwick

Jeff Berwick
Chief Editor
The Dollar Vigilante

Jeff Berwick

Anarcho-Capitalist. Libertarian. Freedom fighter against mankind's two biggest enemies, the State and the Central Banks. Jeff Berwick is the founder of The Dollar Vigilante, CEO of TDV Media & Services and host of the popular video podcast, Anarchast. Jeff is a prominent speaker at many of the world's freedom, investment and gold conferences as well as regularly in the media including CNBC, CNN and Fox Business.

Jeff's background in the financial markets dates back to his founding of Canada's largest financial website, Stockhouse.com, in 1994. In the late '90s the company expanded worldwide into 8 different countries and had 250 employees and a market capitalization of $240 million USD at the peak of the "tech bubble". To this day more than a million investors use Stockhouse.com for investment information every month.

Jeff was the CEO from 1994 until 2002 when he sold the company and still continued on as a director afterwards until 2007. Afterwards, Berwick went forth to live on and travel the world by sailboat but after one year of sailing his boat sank in a storm off the coast of El Salvador. After being saved clinging to his surfboard with nothing but a pair of surfing shorts left of all his material possessions he decided to "live nowhere" and travel the world as spontaneously as possible with one overarching goal: See and understand the world with his own eyes, not through the lens of the media.

He went on to visit nearly 100 countries over four years and did and saw things that no education could ever teach. He met and spoke with a plethora of amazing people, from self-made billionaires to some of the brightest minds in finance - as well as entrepreneurs from a broad range of backgrounds and locations from tech companies in southern China to resource developers in Mongolia, Thailand, Russia and Chile. He also read everything he could find on how the world really works... politically and financially. A pursuit he continues to this day.

He expatriated, long ago from his country of birth, Canada, and considers himself a citizen of the world. He has lived in numerous locales since including Los Angeles, Hong Kong, Bangkok and currently lives in Acapulco, Mexico and is building a home in Cafayate, Argentina. In essence, everything he writes about here for TDV he has done or is doing.

As well, during his travels, both real and virtual (through the internet), he met some amazing people who have a similar shared vision of what is currently going on in the world and enticed them to come aboard TDV and provide their own brand of analysis.

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TRUE MONEY SUPPLY

Source: The Contrarian Take http://blogs.forbes.com/michaelpollaro/
austrian-money-supply/