Simone Wapler – La Chronique Agora (France) –
If you forget the nonsense of economists and central bankers and you focus on the productive economy, you can discover nuggets.
In his latest book Playing his Skin , Nassim Taleb develops the following point: if you want to “improve the world”, do not be a politician, do not become an economist, do not have big ideas valid for everyone. Create a business, make sure your customers are satisfied. I remember from my own experience that happy customers tell you and that it is nice. Then spend the money you honestly earn by being generous.
“Finally, when young people who want to ‘help others’ come to ask me what they need to do to reduce poverty and save the world’ and similar noble aspirations at the macro level, I suggest three things:
1 ) never display virtuous principles;
2 ) never get into the situation annuities;
3 ) you have to start a business. Take risks, create a business.
Yes, take risks, and if you become rich (which is not an obligation), spend your money generously for others. We need people who take risks (calculated).
The whole idea is to move the descendants of the homo sapiens away from the macro, from universal abstract goals, to the kind of social engineering that brings tail risks to society. Doing business will always help (because it generates economic activity without causing large-scale, risky economic change). “
Day after day I write chronicles to make fun of the big ideas of central bankers, supposed virtues of their thousands of billions thrown in food banks and financial markets, their financial and ideological pollution.
Recently, an article about the Stihl company caught my eye. This family business (unlisted) is considered an emblem of the German Mittelstand .When I need oxygen and optimism, I return to the “micro-economy”, to businesses, to real life: what is now called “the real economy”. No matter what big omniscient planners do, entrepreneurs always manage to satisfy customers, to meet a real need.
<img src=”https://cdn.publications-agora.com/elements/lca/newsletter/images/contenu/180302-lca-stihl.jpg” alt=”Stihl” width=”550″ height=”640″ border=”0″ />
For urban people, Stihl is the world’s number one chainsaw. Yes, dear reader: in front of the Canadians, in front of the Americans, before the Norwegians and their huge wooded areas.
In my stable of three thermal chainsaws, there is a Stihl, model ErgoStart because I am a weak woman and energetically soliciting the launcher of a classic model requires biceps of woodcutter which I do not have. It is without hesitation the best of the three. I also have a Stihl thermal brushcutter that has been highly stressed and not particularly spared. I have never had a problem with spare parts, the after-sales service is impeccable. Judging from my experience, this leadership position is not undeserved.
I quote Les Echos on this mysterious Mittelstand :
“Even in Germany, the reality of this notion – which literally means ‘middle class’ – has largely remained a terra incognita . In political rhetoric and everyday language, this term commonly refers to the SME nebula ( kleine und mittlere Unternehmen , KMU), that is to say of all those companies that are not listed on the stock exchange and whose share is estimated in the corporate fabric to some 99.9%. But in the language of statisticians, this concept is totally unknown … “
Yes, there is an off-exchange economic life outside the financial markets. Yes, this life escapes the statisticians, it is less polluted by the central banks. Who owns these companies, who runs them? Here we have a statistic: more than 95% of these companies belong to the founding family.
The pro-Piketty will certainly cringe … but if the leaders were bad, their businesses would collapse and go bankrupt in the indifference of the central bankers.
However, not all of these businesses are closed. When some people need money, they open their capital to investors by allowing them to become shareholders.
Recently, crowdfunding – or crowdfunding – has greatly facilitated the rapprochement between entrepreneurs and investors. We have created our Real Profits service to provide our subscribers with what we consider to be the best deals, according to our own criteria: companies operating in a competitive and non-subsidized sector, already having a turnover and margins.
The last file that we have selected and will be offered to our subscribers is breathtaking.
We fear that the vogue of private equity will completely pollute our hunting ground. Money created by central bankers floods the financial industry. As stocks and bonds have become overpriced, many institutional investors are turning to private equity funds . The big funds raised $ 700 billion in 2017. The managers are barely able to invest the sums entrusted.
“The winning deals on which the investor can hope to recover more than three times the invested capital have become extremely rare,” said L’Opinion February 27 in an article entitled Private Equity, the other financial bubble in the making .
<img src=”https://cdn.publications-agora.com/elements/lca/newsletter/images/contenu/180302-lca-private-equity.jpg” alt=”private equity” width=”550″ height=”269″ border=”0″ />
But the file selected this quarter by Etienne Henri escapes these vices; You can thus become a shareholder of a European company (yes, it is not French) in strong growth by paying less than two thirds of its turnover 2017, knowing that its gross margin is around 40% and that she has no debt! At this price, the potential for added value at the exit is exceptional. [Editor’s note: If you want to invest in this company, accompany it in its growth … and reap the gains that go with it is now : we will send the complete file to the readers of Real Profits March 6 – click here to be part of the time.]
No, not everything is rotten yet in the realm of finance despite the adulterated liquidity of central bankers …