As the saying goes, a book is read a hundred times to see its own righteousness, and it is reckless to say that learning without thinking, so it can be seen that the book should be read repeatedly, and it must also be actively thought. In the middle school textbook, Grantaire is defined as a negative image of a scrooge, in fact, put yourself in the shoes of serious thinking, you will find that Grande also has a lot to learn. A few days ago, combing through Grande's wealth counterattack journey, I also thought about his financial management concept, and today I will nag Mr. Grande's asset allocation.
First, the asset allocation of bachelors
Before 1789, Grande lived a bachelor life of a man who fed the whole family without hunger, and as a hard-working and frugal hoop cooper, he slowly accumulated some wealth, and the asset allocation was all concentrated on cash, which is more than 1,000 gold Louis (gold coins) mentioned in the book. In France at that time, the depreciation of paper money was too severe, and it depreciated by 20 to 30% every year at every turn, and this gold coin was a hard currency in France at that time.
Gold Louis accumulated by the Bachelor of Grande (Image from the Internet)
Second, the asset allocation of starting a family (40 to 50 years old).
In 1789, the 40-year-old Grande married Mrs. Ge, coinciding with the sale of state assets in the French Revolution, Grande All in all his wealth of 2,000 gold Louis (40,000 francs), bought the best vineyards, an old monastery and several fields in the local area, the family's asset allocation shifted from gold coins to manors and land, and realized the transition from a middle-class cooper to a landlord, which was the inflection point of his wealth.
Photos of vineyards taken while traveling to Switzerland in 2015
Third, the asset allocation of success (50 to 70 years old).
In addition to maintaining his first love for gold, the successful Grantaire was also extremely obsessed with land, and the asset allocation was reduced to two things: the first was to exchange the francs earned each year for the equivalent of gold coins or gold, and the second was to accumulate enough gold to buy land.
In 1818, the total wealth of Grantaire was about 10 million francs, and its asset allocation was mainly estates and land, and another 10% of the francs and gold coins, and its asset list was: (1) about 1,000 acres of vineyards, with an annual output of 700-800 barrels of wine; (2) the Manor of Floisfon, which was bought for 3 million francs; (3) About 13 plots of land divided into leased land; (4) 20,000 acres of forest; (5) about 1,270 acres of meadows of poplar trees; (6) About 1 million francs of gold coins.
Haystacks and lavender fields photographed while traveling to France in 2015
Fourth, the asset allocation of wealth inheritance (after the age of 70).
At the end of 1827, Grande, sitting on a wealth of 17 million francs, died, and his wealth was mainly allocated in three major areas: real estate, treasury bonds and gold. Among them, the real estate value is 9 million, accounting for 53%, including estates (vineyards), fields, grasslands and forests; The national debt is 6 million, accounting for 35%; Gold 2 million, accounting for 12%.
V. The art of asset allocation between the scrooge Grantaire and the iron-blooded chancellor Bismarck
Grantaire can be described as a master of asset allocation, and the wealth inherited from it has enough security and profitability to withstand any natural disasters and social unrest. After the death of Grande at the age of 82, Eugenie inherited all of his wealth and lived a life of generosity, charity and serenity.
Coincidentally, Bismarck, the Iron-Blooded Chancellor of Germany, was also a fan of land wealth. In Bismarck's view, securities investment was the fastest way to grow wealth, but land and forests were the best way to fix and pass on wealth. So, he used the profits from his investments to buy land and forests. He found that population growth would lead to a 2% increase in land prices per year, a 2.75% increase in prices per year, and a fight against inflation, so that the real gains from land and forests were about 4.75% per year, and even if inflation occurred, he was confident that his land and timber would appreciate with it, which was a safe way to invest in wealth. In the later World Wars I and II, Bismarck's correctness was greatly verified, and as the war continued to deepen, factories and securities were destroyed, while the land, forestry, real estate, and manors he owned appreciated significantly.