Jay O'Keefe's Investment Letters

Letter 23 
April 4, 2008

Learning from the Masters
Today and Tomorrow

Unless you read and study, re-read and study, on a more or less continuous basis, you will never become a really successful investor. You must learn to "follow the masters." 

Every day the world changes. The masters change with it. The crowd is five years (or more) behind. I have suggested just three that should be constantly followed, Russell, Maybury and Rogers (details in Lesson 3). I listen to, study, meditate on and cling to every word they speak or write. Not only that, I work almost as diligently shutting out nearly all other voices as I do listening to these three, otherwise I get confused.

At the moment, a one year's subscription to Maybury is $159, and to Russell $250 (soon to increase to $300). In my opinion, the $459 investment will be the best investment you'll ever make.

Russell is nearly 84, so I don't know how much longer he'll be helping us, but he's never been better. You get a letter on his web site five days a week. Over a year's time you will learn much. All he does is study and write every day.

Maybury is 65 and at his prime as far as I can tell. You only have to read 80 small pages per year. (Early Warning Report). All of his back issues are on a single, searchable, CD, which sells for between $400 and $500. It is the most incredible course on how the world works (economically) that I have ever seen. Those who have followed him the past 10 or more years are swimming in profits. And every investment is documented in the CD.

Rogers is 65, also at his prime as far as I can tell. Like Maybury and Russell, he is a "loner," meaning not affiliated with any financial firm, or publishing firm. This is huge!! He is a rare person who apparently loves to share what he is doing with the "average person," or "small investor." He gives interviews (radio, TV, internet) almost every week. Search Google for them. I record them, and transcribe them, then put them in my Rogers binder, reading them over and over (along with his books). I know of no other way of transferring his investment wisdom into my brain.

If you don't want to pay the price of doing all of the above, in my opinion your best bet is to spend the $159 per year and read Maybury, then follow his advice. Put most of your money in Permanent Portfolio (PRPFX), then add a few of his speculations (Variable Portfolio) and stick with them through thick and thin. 

I would be very surprised if even one in a hundred mutual funds has out performed PPF over the last 35 years. Thousands went out of business in the late 1960s and early 1970s, their losses dropping out of the record books, never again referred to, just like dropping a poorly performing stock or stocks out of the Dow Jones averages, or S & P average. You probably wouldn't believe how many times it has occurred. Over time, these averages lose much of their meaning. They are manipulated.

Are there any younger "masters" in the making? Undoubtedly. I have suggested several candidates in Lesson 3, but I don't know which will make it. And I start with a huge prejudice against those connected with major financial institutions or publishing companies. In my mind the potential "conflict of interest" is a major negative. I may not live to see which ones become "masters." Come to think of it, I may not live much longer to answer questions and offer counsel. 

Final word for today
It is so easy to miss the real reason for becoming a successful investor. If I become financially wealthy, but see myself as an owner of that wealth rather than a manager of God's wealth, it will become a curse rather than a blessing. Jesus gave us one basic command regarding the management of financial wealth: "Store it in heaven rather than on earth" (see Matthew 6:19-34). But wait, here's the "white knuckle" aspect of that command. He gave us complete discretion to decide what that looks like, and then mentioned that He would discuss it with us at the Judgment Seat of Christ (2 Cor 5:10). To the extent that we mismanage (based on His judgment), we will lose it for all eternity. But if we manage well, we will receive 100-fold in eternity (Matt 19:29). Some in the market place would say that is a good return on investment.


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All I Have Commanded - an exhaustive list of what Jesus expects of His followers

"Well done, good and faithful servant; you were faithful over a few things,
I will make you ruler over many things.  Enter into the joy of your lord"
(Mt. 25:21 NKJV)

If you have not been faithful in the unrighteous mammon, who will commit to your trust to true riches?" (Lk. 16:11 NKJV)

The Apostle Paul wrote, "Now godliness with contentment is great gain. We brought nothing into the world and it is certain that neither can we take anything out. So having food and clothing we will be content with that. But those who want to get rich fall into temptation and a snare and into many foolish and harmful desires, that plunge people into ruin and loss; because the love of money is a root of all kinds of evil; in their greediness some have been led away from the faith and have impaled themselves on many distresses." (1 Tim. 6:6-10 NKJV)

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The information in these letters is the responsibility of Mr. E. Jay O'Keefe, but all your decisions are your own responsibility.

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