Parames Francisco - Investing for Long Term Success

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FRANCISCO GARCA PARAMS

This edition first published 2018

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Library of Congress Cataloging-in-Publication Data

Names: Params, Francisco Garca, 1963 author.

Title: Investing for the long term : my experience as an investor / by Francisco Garca Params.

Description: Chichester, West Sussex, United Kingdom ; Hoboken : Wiley, 2018. | Includes bibliographical references and index. |

Identifiers: LCCN 2018003956 (print) | LCCN 2018011705 (ebook) | ISBN 9781119430681 (pdf) | ISBN 9781119431206 (epub) | ISBN 9781119431190 (cloth) | ISBN 9781119430681 (ePDF) | ISBN 9781119431213 (Obook)

Subjects: LCSH: Value investing. | Stocks. | Params, Francisco Garca, 1963 | Capitalists and financiersSpainBiography.

Classification: LCC HG4521 (ebook) | LCC HG4521 .P265 2018 (print) | DDC 332.63/22dc23

LC record available at https://lccn.loc.gov/2018003956

Cover Design: Wiley

Cover Images: Image Source/Getty Images; Vladitto/Shutterstock; Phongphan/Shutterstock

For Mara ngeles, my rock and inspiration, and for my parents, reading from heaven

Countless books have been written in the United States on the subject of investment which have helped to nurture a sensible approach to going about it. It's not easy to contribute something new to English-speaking readers. This book is an attempt to offer something similar to European investors, especially readers from the Spanish-speaking world, where investment shortcomings are much more pronounced. As such, most of the examples that are provided here are European or Spanish.

Even so, English-speaking investors will come across some ideas or elements which they may find interesting.

• Investment books seldom talk about the economy and even less so about Austrian economics; this book may prove enlightening in this regard. It outlines the basic tenets of the Austrian School and how they apply to investment.
• One of the main applications is the need to invest in real assets (real estate, shares in companies, commodities, etc.) to maintain the purchasing power of savings. These real assets are the only defence against currency depreciation when the latter is not supported by a strong anchor, such as the gold standard.
• Risk is misrepresented in the financial world; something which this book addresses, unpicking some of the myths.

My career path as an asset manager from a different cultural environment is also somewhat different from the norm. I have drawn some lessons from my own life story, experiences, the different obstacles and client attitudes I have encountered and the overall environment, which might prove applicable to the reader's own circumstances.

In sum, I hope that this book proves to be as interesting to English-speaking readers as it seems to have been to a Spanish audience.

I never imagined I would write a book. Less still one on investment. But life has surprises in store for us all, and it's best not to squander them. It may sound obvious, but you have to turn problems into opportunities. Do so naturally, as a reflex and across all aspects of life whether personal, professional (as an investor making the most of market turmoil) or more generally in the world around you.

When I first read Peter Lynch's One Up On Wall Street at the start of my career, it seemed to provide such a clear and simple explanation of how to go about investing that there wasn't much more to add. The experience of various years did little to change my opinion. Other books that I encountered along the way, especially the classics, appeared to complement and reaffirm this view. It seemed that the path was already well trodden.

However, gradually almost imperceptibly things began to change. Perhaps because of experience, or a touch of vanity. Either way, in recent times it has struck me that none of these books were an exact reflection of the principles or the way of working that we bring to investing (I say we because while this book represents my ideas and experiences, I have not been alone on this journey. My approach to investment has been refined and implemented alongside a team of colleagues with whom I have had the good fortune to work over the years, first at Bestinver and now at Cobas.) For example, they seldom ever talk of the right way of viewing the economy. A people-centric approach can be especially useful at certain crucial points in time. And so, gradually, the germ of an idea began to take root in my mind.