In my ongoing investigation of dynamic preservation, some exploration of Ashvin Chhabra's work seems to be in order ...

Rob Kaufold recently turned me on to Ashvin Chhabra's The Aspirational Investor. In part because of my recent exposure to Tony Deden, I have been starting to think about dynamic preservation as really requiring a very simple thought process or mental model: there are two types of investments in dynamic preservation. Just two. Investments designed to protect asset value, and investments designed to grow asset value. Protect and grow. That's it. Rather than thinking about a portfolio by asset class, geography, industry, or any other breakdown one can use, maybe it's as simple as breaking a portfolio into these two classes: protect and grow. As I think about it, most of us are very good at "grow." The entire investment industry is really focused on "grow."

Even assets that advisors put their clients in to "protect" are, in many ways, still really designed to grow--or, at least, one could say that they don't meet Deden's definition of what a 100-year protective asset might look like. Chhabra's three buckets Now, one might not want assets that "protect" to the degree that Deden does, but at least one should have a really carefully thought-out "protect" strategy that will actually protect and not just nominally protect. Again, many have a pretty thought-out grow strategy. But their protect strategy? Not so thoughtful. I've been asking around about where investors or advisors have their clients' "protect" assets. And lots of the answers aren't very protective. Anyway, more on that some other time when I've thought it…

What does dynamic preservation of wealth over time really require? This is a great starting point.

Jay Hughes recently referred me to a wonderful video interview of investor Anthony Deden. Deden has kept a low profile for many years, and this is the first interview he has granted. He is a deep thinker, however, on the subject of what it takes to preserve and protect financial capital over a long period of time. This is one of the best presentations on that topic that I've seen. I will be posting some thoughts on the dynamic preservation of capital soon. In the meantime, I encourage anyone interested in these topics to watch this in it entirety.…