HindeSight Investment #98 March 2023 - Newsletter - Read Here
CONTENTS
OVERVIEW
INVESTMENT INSIGHTS
PORTFOLIO UPDATE
HINDESIGHT DIVIDEND UK - PORTFOLIO #1 MAR 2023
OVERVIEW
Since the beginning of time banking has made and lost fortunes for those involved in its activities. This has happened on a fairly regular basis for hundreds of years. One of the best examples was of the great Florentine banking dynasties of the middle ages. Established to assist in the new world of industry and growing cross border trading the great names of Medici, Bardi and Peruzzi to name a few, sprung up accepting deposits from wealthy nobleman and merchants which they lent to monarchs and the papacy to finance international and religious conflict. Many of these were created as family businesses with unlimited liabilities and had numerous branches across Europe. Although the loans were often made to the AAA credit monarchs of the day, the doors of the Bardi and Peruzzi banks closed between 1343 and 1346. This was mainly due to the non-repayment of gigantic loans by King Edward III of England which he had taken to finance The Hundred Years War with France. The Spinelli bank collapsed in 1456 as Pope Calixtus III reneged on his debts. Even the Medici bank, the largest and wealthiest in the 15th century credited with the financial innovation of the bill of exchange did not survive and folded in 1494. Many products created in the Middle Ages were to facilitate trade without carrying large quantities of gold specie and to avoid the receiving of interest usury still forbidden by most religions. The two belligerents of the English War of the Roses, The Lancastrians and the Yorkists who finally settled their differences at Bosworth Field nine years earlier were unable to repay their loans to the Medici bank which was the final nail in the coffin for the Citibank of the time.
As the medieval goldsmiths realised, (republished this week from HindeSight Archive-sign up free on Substack) the basis of Fractural Reserve banking is simplicity itself. You receive deposits for which you pay X %, with which you make loans at X+ %. The difference in the maturity of the deposits and loans, the spread and the number of loans you make levered off the deposit base all factor into the equation of profitability. As does the correct analysis of risk and the diversification in determining the margin for potential defaults. Every bank failure in history has resulted from the incorrect analysis of the potential changes in these factors….
To continue reading the rest of the HindeSight letter please subscribe for the price of a cup of coffee per month, only £4.99, paid subscribers please scroll down to continue reading.
WHY SUBSCRIBE TO THE HINDESIGHT LETTER?
INVESTMENT INSIGHTS
Not only do we break down the reasoning behind our monthly share choices, we explain the methodology behind investing so you will learn more about strategies and how they impact your portfolio. Investing is like anything else, the more you know, the better you'll be at it and the better your decision to invest will be.
EMAIL ALERTS
You will also receive timely email alerts detailing portfolio changes to the HindeSight Dividend Portfolio #1, that covers FTSE350 stock as suggested by our Hinde Dividend Matrix and seasoned money managers. These are for immediate changes in opening or closing a position.
HINDESIGHT PORTFOLIO SELECTION
In our monthly HindeSight portfolio selection article we cover in-depth and in plain English, our reasons why we added the previous share to our portfolio with additional insights and performance data that's usually reserved for the trading floor.
OVERVIEW
Our overview features analysis, research & opinion on the latest news and current affairs and is a window into understanding factors that shape markets.
WHY CHOOSE US?
HindeSight Letters is a unique blend of financial market professionals – investment managers, analysts and a financial editorial team of notable pedigree giving you insights that never usually make it off the trading floor.
We help our paid subscribers have 100% control to build their own portfolios with knowledge that lasts a lifetime and all for the price of a good coffee a month - just £4.99. Our history is there for all to see, measure and research.
Visit hindesightletters.com for more information