“Reflect on the past, where empires continuously rose and fell, and you may glimpse the future.” – Marcus Aurelius
Gradually Diminishing the Minds of Men
Long before Marcus Aurelius ascended to the role of Emperor in AD 161, the Roman Republic had already corroded. The role of the consuls was gradually overshadowed by Caesars around 27 BC. Nevertheless, the Roman Empire continued to function reasonably well, at least for a time.
The years between AD 98 and Aurelius’ death in AD 180 were marked by prosperity and happiness within the empire. Sadly, Aurelius’ death signified the peak of this grand civilization, after which the fortunes of the imperial power began a slow decline over the next three centuries. This descent culminated in the final collapse on September 4, 476, when Romulus Augustus, the last Emperor of the Western Roman Empire, was ousted by Odoacer, a Germanic soldier.
“It is hardly conceivable that contemporaries could discern in public prosperity the underlying causes of decay and corruption,” observed 18th-century historian Edward Gibbon in his work, The Decline and Fall of the Roman Empire. “This enduring peace and the uniform governance by Romans introduced a slow and insidious poison into the empire’s very essence. The intellect of individuals was uniformly dulled, the spark of creativity extinguished, and, alarmingly, even the military spirit waned.” Continue reading
Are you prepared? Something extraordinary could unfold within the next few days. In fact, if Congress fails to act by this Friday, we will all have the rare chance to experience something remarkable…
Apocalypse!
Indeed, President Obama has even hinted at this prospect…
“Emergency responders, like the ones who are present here today – their capacity to assist communities in preparing for and recovering from disasters will be significantly diminished. Agents from the Border Patrol will see their hours cut. FBI agents will face furloughs. Federal prosecutors may have to cease cases and release criminals. Additionally, air traffic controllers and security personnel may experience reductions, leading to more airport delays nationwide. Thousands of teachers will be laid off, forcing tens of thousands of parents to scramble for childcare solutions. Ultimately, hundreds of thousands of Americans will lose access to essential primary care, including vital flu shots and cancer screenings.”
Honestly, the President’s warnings do not seem particularly alarming. Continue reading
Japan seems to be in a relentless downward spiral. For example, a report from the Finance Ministry revealed that Japanese exports rose by 6.4 percent to $51.2 billion in January compared to the same period last year. Unfortunately, imports increased even more rapidly, surging 7.3 percent to $68.6 billion.
As a result, Japan as a whole incurred a trade deficit of $17.4 billion, which was offset by accumulating various types of debt: corporate, government, and private.
This newly added debt will worsen Japan’s staggering government debt-to-GDP ratio of 230 percent— the highest among industrialized nations worldwide. This situation is further complicated by Japan’s economy contracting at an annualized rate of 0.4 percent during the last quarter of 2012, marking a third consecutive quarter of decline. If this seems dire, it’s because it is. Japan’s descent into economic oblivion is only beginning to gain significant traction.
Japan’s trade deficit for 2012 ballooned to $78 billion. Yet, that is merely the beginning. Continue reading
“Price is what you pay. Value is what you receive,” once noted billionaire investor Warren Buffett. Such words of wisdom certainly ring true.
Regrettably, many investors primarily focus on price, overlooking the crucial aspect of value—the cash flow or dividends per share that a business generates for them. This could explain why so many investors end up overpaying when buying shares of a company.
Typically, most stock market participants are more akin to speculators than true investors. They focus solely on price. If a stock’s price is rising, they perceive it as a sound investment; if it’s declining, they view it negatively.
After a stock’s price declines, speculators often believe it’s a bargain—simply because it’s less expensive than just a few months prior. Yet, sometimes a stock’s price continues to drop even further. Nevertheless, for investors who grasp the concept of value and the returns they can expect from owning stock, price always falls under that umbrella of understanding.
Embracing Buffett’s philosophy, investing is fundamentally about optimizing the price one pays for a share in a company’s ongoing wealth generation. Continue reading
In conclusion, the historical lessons from the rise and fall of empires, economic discrepancies, and investment strategies serve as a cautionary tale for contemporary society. By reflecting on the past, we can better understand our present challenges. Ultimately, fostering critical thinking and true investment based on value can lead to a more resilient future.
