August 9, 2017 9:41 am

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Charlie Morris: The late Barton Biggs was an outstanding financial writer. He was the chief investment officer at Morgan Stanley for decades before “retiring” to run a hedge fund. I highly recommend his book Wealth, War and Wisdom.

He studied the financial side of Japan in WWII, the hyperinflation in Germany in the 1920s and other Armageddon scenarios. His conclusion was that cash is trash. In Japan for example, commercial property worked well through the war. Farm land was confiscated, but the empty factories were left alone as they were worthless at the time.

After the war, they sprang back to life and regained their value. Gold, jewellery, art and so on were OK, but were often confiscated during these dark times. A globally diversified share portfolio was fine, as was a globally diversified bond portfolio.

His conclusion – and I’ve cut down an amazing read to a paragraph – was to diversify between bonds, shares, real assets and property. Assets must be at home and abroad – wherever you are. That ensured economic survival in every scenario. The end of the world happens on occasion. Biggs doesn’t harp on about it. He offers a solution.