Investing as is for governing

Heads up to the major political parties, the commentary industrial complex and other political hangers on.  This following quote is from famous investor Warren Buffett:

Wide diversification is only required when investors do not understand what they are doing.

Diversification, as in “diversity” here applies just as must to structuring your investment portfolio as it does to selecting a cabinet team or a parliamentary team.

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8 Responses to Investing as is for governing

  1. stackja

    Investing by putting all eggs together?
    MPs once were for workers and employers. Now scammers have entered into it.

  2. Leo G

    Diversification, as in “diversity” here applies just as must to structuring your investment portfolio as it does to selecting a cabinet team or a parliamentary team.

    How much diversity is possible in a group of political lawyers, particularly when selected by one their own.

  3. How much diversity is possible in a group of political lawyers, particularly when selected by one their own.

    Gender, race, age, sexual preference, religion, height, weight, skin colour, country of birth, state of birth, planet of birth, eye colour.

  4. The BigBlueCat

    Wide diversification is only required when investors do not understand what they are doing.

    That might only apply when driven by quotas, when the only understanding that is required is that the cabinet or parliamentary team is made up of the right numbers, rather than the right people with the right skills.

    But the Capital Asset Pricing Model and other investor techniques for selecting share investments are vastly different to selecting MP’s – there is much more empirical information available when it comes to selecting shares. Sure, there are risks, but those risks can be mitigated by the investor – it’s hard to mitigate the risks of selecting the wrong MP if the information about the MP isn’t available or disclosed. The recent S44 debacle is a case in point. Fortunately, we saw the back of a few Greens Senators as a result ….

  5. The BigBlueCat

    The Artist Formerly Known As Spartacus
    #3034494, posted on June 4, 2019 at 2:47 pm
    How much diversity is possible in a group of political lawyers, particularly when selected by one their own.

    Gender, race, age, sexual preference, religion, height, weight, skin colour, country of birth, state of birth, planet of birth, eye colour.

    Terri Butler wants MP’s the be all of that because men can’t represent women in a representative democracy (according to her – see her last appearance on Q&A). Terri Butler is everything that is wrong with diversity – she’s not diverse enough since she’s a straight, white, privileged, professional woman! How on earth can she represent a working class, brown-skinned, Buddhist, trans-gendered, gay(?), indigenous-identifying person (with alopecia and differing eye colour) that happens to be in her electorate? /sarc

    Of course she can, and so can anyone else if they are elected to parliament.

  6. Isn’t there a difference between ‘wide’ diversification and ‘sensible’ diversification?

  7. Squirty

    What is the political analogy of the index fund?

  8. Pyrmonter

    @ Leo G

    ‘Diversity’ in the current cabinet:

    PM – Morrison. Former political marketer / machine man (the sort who used never to be seen or heard from)
    Deputy PM – McCormack. Ex journo.
    Treasurer – Frydenberg. Legal qualifications (including extensive study abroad) then a career political staffer.
    Ag – McKenzie. Briefly a teacher, then politician.
    Finance – Cormann. Legal qualifications, then a career political staffer.
    Trade – Birmingham. Lobbyist/staffer.
    AG – Porter. Legal qualifications and short career in practice. Staffer turned state politician turned federal politician. Political family.
    Foreign Affairs – Payne. Activist/staffer.
    Defence – Reynolds. Public servant/staffer and Army Reservist. Long career on the voluntary side of party politics.
    Population, Cities (‘pork barrelling’) – Tudge. Management Consultant turned lobbyist.
    Health – Hunt. Legal qualifications, then staffer.
    Communications – Fletcher. Legal and business qualifications, management consultant, sausage meat at Mallesons then career staffer/lobbyist.
    Education – Tehan. Academic qualifications in politics/international relations, then career staffer. Political family.
    Industrial Relations – Cash. Legal qualifications, short career as an IR lawyer. Political family.
    Industry – Andrews. Engineer/Human Resources.
    Resources – Canavan. Qualifications in economics, briefly at PC, then career political staffer.
    Energy – Taylor. Law/Economics qualifications, management consultant. Political family.
    Environment – Ley. Accounting/Tax qualifications (and numerologist). Tax collector/farmer.
    Families and Social Services – Ruston. Economics course; manager. Founded own nursery business.
    Indigenous – Wyatt. Senior public servant in a spending department.
    Water Resources – Littleproud. ‘Agribusiness’ which seems to mean insurance for Suncorp. Political family.
    NDIS/Government Services – Robert. Army, part time study, then founded an HR business.

    Not one has been senior in a professional organisation. Several are carrying on the family business of ‘politics’. Three have founded small-medium businesses; all in the bottom ranks of seniority. Most common former occupation – political staffer, mostly after studying law, and, much more frequently than most lawyers, doing so abroad. Diverse? Representative? The best that parties of the Right should be able to gain?

    (Odd to note that two of the three who’ve gone through organisational processes likely to winnow out the incompetent – Wyatt, Ley and Andrew – were women)

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