Gold at $5,000. Buy or Pass?

The shiny rock (gold) is ripping higher, blowing past $5,000 an ounce based on global currency debasement concerns.

Bitcoin owners - who nailed the currency debasement thesis - can’t feel great watching Gold “steal their girlfriend” with this spike.

I certainly appreciate wanting to own a bit of gold as a possible non-correlated hedge, but I’ve never owned it as a core / major investment.

I understand it has some industrial uses, but I’m not certain on the scarcity argument. What I do know is it produces zero cash flow. In other words, I have no idea if its over or undervalued.

However, I’ve also tried to convince my wife for decades that gold and diamonds are just shiny rocks with little actually intrinsic value….that argument has also fallen on deaf ears.

In the defense of gold, there are plenty of things that have value because people say so: Bitcoin, fine art…Pokemon cards.

You don’t have to ‘get it’ to know the market wants these things. I do like the hedge against money printing argument so I never try to talk investors / clients into selling their gold, silver or any commodity (including BTC).

I just disagree that they are investments. I prefer thinking of them as insurance.

That way you can just keep the bet on, you don’t have to panic if it drops or figure out when to sell if it’s spiking. In other words, you don’t time insurance premiums, you just have them in case shit hits the fan. This mindset makes holding through volatility much easier.

Anyways, happy to continue being gold-less, but congrats to all you owners out there on your newfound wealth!

Private equity as an asset class technically includes venture capital, which also includes angel investing.

I was recently asked by a prospect to explain the differences.

The below breaks out the differences from the perspective of the entrepreneur taking the capital and the investor writing those checks.

Even if you know this stuff cold, there are some useful details in here (if you can actually read the image). Sorry, the team had a hard time getting this all into one graphic.

Bill Ackman sold 10% of Pershing Square for $1.1 billion last year.

Most people think he's "cashing out”, taking some chips off the table. Otherwise why would he sell a chunk of the cash-printing machine?

→ Pershing's assets are permanent capital
→ Management fees locked contractually for a decade
→ Predictable cash flows that look like an annuity

Ackman converted future fee streams into $1 billion of present value. Liquidity without losing control.

But look at who bought in:

→ Arch Capital
→ ICONIQ Capital
→ Other major family offices

Sophisticated money betting on the management business, not market timing.

ICONIQ manages money for Zuckerberg, Moskovitz, Sandberg, Dorsey, and Hoffman.

In other words, ICONIQ is not making a trade here. They don't need quick bucks and they don't invest in dying businesses. They know Ackman idolizes Buffett and has huge ambitions to grown Pershing's AUM.

Family offices like investing in GP Stakes, because they're billionaire clients want to own unreal businesses (like general partnerships) for durable, long-term cash flow in a tax-efficient wrapper.

GP Stakes is one of the few corners of private markets where institutional money and high-net-worth investors are playing the same game.

Bill Ackman GP Stake sell case study video below:

_{None of this is tax, legal, or investment advice. It is for educational purposes only and is based on simplified examples and general observations. Any investments or strategies discussed may not be suitable for your situation, and outcomes can vary materially. Before acting, consult your CPA, attorney, and financial advisor to evaluate your specific facts and confirm what is appropriate for you.}