Thursday, December 12, 2019

"Hedge-fund manager Kyle Bass on decade-worthy investments, trade talks and that nickel collection"

From MarketWatch:
And the unstoppable bubble that’s already taking root
Your 20-year investment plan is simple, according to Kyle Bass, founder and chief investment officer of Hayman Capital Management. Bet on young Americans, he says.

“Where are you going to put your money? In Europe, in China, in South America? There is no better place to put your money than the United States. We have a rule of law, and we have the best economy as well,” says Bass, in a recent interview with MarketWatch.

The hedge-fund manager is famous for making winning bets on subprime loans back in 2007 and he offered MarketWatch his thoughts on the U.S. - China trade talks, the next bubble, who is the best U.S. President for markets, and nickels.

Investing in the future
If you want to create generational wealth, then invest in the best the U.S. has to offer — education and entrepreneurship — says Bass. Those “just trying to hang onto their wealth are the U.S. middle class retirees that have all their money invested passively in the stock market,” says Bass.

“I try to invest in some of these kids coming out of college and other VC [venture capital] firms that are investing in human innovation,” says Bass, who says he has made small investments for his family in Othram, a forensics genetics firm that offers technology that uses traces of DNA to solve cold cases. That type of technology led police to the arrest of the suspected Golden State Killer.
“Technological innovation, in biotech, health care, genomic sequencing and now even many different cancer therapies are actually showing huge promise,” he said. And even looking at public companies, biotech has delivered “massive returns” over the past decade. “I think that will continue into the next decade,” said Bass....