Monday, October 19, 2009

Einhorn Speaks at Value Investing Congress

David Einhorn of Greenlight Capital is someone I'm always eagerly listening to. He is very intelligent and manages money for a living. As I've said many times, the people that are intelligent and have their own money on the line are the only ones I truly listen to. Believe me, there are very few of them. But Einhorn is one of them.

Here's the text of his speech today at the Value Investing Congress. I got this via Rolfe Winkler's blog at Reuters. There's a lot of great stuff in here.

Here's just one good quote, about gold:

I have seen many people debate whether gold is a bet on inflation or deflation. As I see it, it is neither. Gold does well when monetary and fiscal policies are poor and does poorly when they appear sensible. Gold did very well during the Great Depression when FDR debased the currency. It did well again in the money printing 1970s, but collapsed in response to Paul Volcker’s austerity. It ultimately made a bottom around 2001 when the excitement about our future budget surpluses peaked.

No comments: