Our world view – Stoic Ataraxia

Our Strategic View

The world has unique opportunities to create unimaginable wealth, and our investments are founded on the firm belief that the world will grasp these opportunities. Every year 85 million people leave poverty as a result of this creativity. How is this possible?

We live in a shrinking world. The IT revolution and increasing trade deregulation make the world spin more smoothly. Outsourcing is made easier and less risky, boosting trade and wealth creation in the long run.

Trade is one of the most powerful growth engines in the world. Increasing trade and robust communication tools allow know-how to be spread far and wide. Fast. Emerging Markets capitalize on these developments.

Sometimes politicians tries to put a spanner in the works, but we believe that these kind of measures will fail, for the simple reason that trade always is beneficial for all parties involved.

Another reason behind continued successful global progress is the spread of capitalism and market economy. The global economy thereby enjoys better resource allocation, unleashing entrepreneurial power and creativity.

It is in this world of free trade and growth that many business opportunities emerge and it is here we have our strategic focus. We seize these opportunities by pursuing business in the following areas:

Invest in those emerging markets that are best suited to copy Western business models and promote market reforms, thus achieving faster growth at less risk. People in these regions are hungry for progress and eager to reach higher living standards. They are the greatest beneficiaries.

Invest in Asia, the centre of the biggest industrialization the world has ever witnessed. We’re of course talking about India and China. Low leverage in this region also creates opportunities for huge infrastructure investments that bring about huge productivity gains. We also invest in other parts of the world. Countries that by releasing the forces of the free market, create possibilities to generate prosperity for the people.

There are however threats to these positive developments. Factors, such as protectionism, increased taxation on the wealth creators, labor and capital, as well as stricter regulations, more red tape and an unsound environmental debate, can soon plunge people back into poverty.

Tomorrow is a Better Place

At Stoic Ataraxia, we find joy and comfort in the fact that the world is slowly but surely becoming a better place to live in, and contrary to what many people believe, the world is not getting worse. Proof of this is the fact that 85 million people each year, through market economy and globalization, have left poverty during the past 15 years.

India and China are good illustrations of this progress of poverty reduction in the world. Say what you will about the problems in India and China, but poverty has been dramatically reduced, and in our opinion, it is a result of the gradual implementation of market economy. They are now also planning to implement a new round of market reforms, which naturally would be another step towards greater prosperity.

Below, please find some facts about our world of today that hopefully will inspire you and give you a more optimistic outlook on the current state of our world, and instill more confidence in the ability of the human race to progress:

The number of people killed in wars since the Second World War when 300 people per 100 000 died, has fallen to 10 in every 100 000 during the 1970s, and is currently down to 1 person in every 100 000.
The explosive growth of the global population that has been a big concern for many people for many years also seems to be moving towards a solution, even though we are living much longer and standards of living have dramatically improved.
The average life span in the world is continuously rising.
Between 1920–1980, on average, 395 people per 100 000 died of hunger each year. Today, that same figure is fewer than 3 people per 100 000. Farming and food production – even per capita – is rising rapidly in the world, and has nearly doubled since the 1980s. (OECD-FAO)
Illiteracy in the world is falling, which is leading to better communication and better functioning societies (UNESCO)
The world is increasingly being governed by democratically elected leaders. This strengthens participation in society and reduces the risks of war.
Between 1920–1929, 241 people per one million died each year due to weather-related accidents globally, compared with 5 per one million a year over the last ten years.

The list of positive developments is much longer, and yes, the world faces many challenges and significant problems still remain in many parts of the world, particularly in Africa and the Middle East. However, the point is that humans are fantastic creatures that constantly overcome such new challenges. Take the energy issue for instance; have electricity costs ever been as low as they are today? And, soon solar energy will sometimes compete in terms of efficiency with all other forms of energy production.

Not bad, eh?