Scarce High
Will an ammo portfolio beat a mutual fund portfolio?
There are 2 investors, Mike and Gary. They both decide to invest $500 from their paychecks every month for the next 25 years, Mike invests in ammo and Gary invests in the Vanguard 500 fund. Mike buys premium brass case ammo and Gary buys shares of the Vanguard 500 fund. They are both working and living in an economy of high dollar inflation, big government spending, scarce jobs, and tight bank lending.
Which of the 2 investors’s investment will do better when they retire? Which of the investments will be worth more?
Here is an actual example.
Forbes Magazine ran this as an article. In 1986 a fully automatic M16 was $1800. Had you purchased an M16 back then it would be worth $19,000 today. If you had invested $1800 in gold, it would be worth about $8,000 today.
Ownership of a fully automatic firearm has outperformed every stock and mineral investment possible.
In 1986 a fully auto M10 pistol was $300 and could be bought by the pallet load. Today, these are selling at $4500 each.
Hope this helps
4. When Humans Were Scarce