What I Have Learned About Economics from the Bloomsbury Group

The Bloomsbury group designates a group of intellectuals who met in the early twentieth century in London, among its members were: Keynes, the philosopher Bertrand Russell, the writer Virginia Woolf and her husband, Leonard Sidney Woolf, painters Duncant Grant, Vanessa Bell and Dora Carrignton, Ludwigh the philosopher Wittgenstein, and others. Among the group also was the philosopher George Edward Moore, his ideas had a great influence on Keynes and his philosophical concepts were close to Bertrand Russell have been partners in the Trinity College, Cambridge, at the time agreed with Ludwig Wittgenstein who was admitted as a student and later held the chair of Moore. Many of them belonged to the Apostles (Society for the gathering of Cambridge). The Bloomsbury group has essentially a moral purpose in seeking the good in itself as opposed to the prevailing morality in the Victorian era, this was the decisive influence of the philosopher Moore. Perhaps the English culture was not aware of such an accumulation of talent as this group.

Two who had a great relationship among them Virginia Woolf and her husband founded the Hogarth Press which published editorial work of many club members. What began as a hobby later expanded to other publications specializing in psychoanalysis including works of Sigmund Freud.

Much of the members lived in the neighborhood that gave name to the club, initially met at the home of Virginia Woolf and her husband, other meetings were held in a restaurant where they read aloud some texts written by some member of the club in recent years, these meetings were often made at home of Keynes because their health did not allowed him to go out much.

Keynes is remembered as a popular investor Buffet, Kostolany, Lynch, Wenstein, Livermore but if that was a big investor as an investment fund managed on behalf of King’s College Cambridge, from 1928 to 1945 and despite the major blow to received by the Crack of Wall Street in 1929, had an average annual return of 13.2% while at the same time the United Kingdom Stock Exchange lost 0.5% annually. I think it’s interesting to hear the thoughts of Keynes who have spoken on other occasions, the most influential economist of the twentieth century. His contributions to the economy were in parallel with concerns about the reality of the era and his idea of society and I am not clear whether it was the first philosopher or economist. His father was a Cambridge professor of Logic and Political Economy and therefore had access to the great figures of the era, including Marshall.

Galbraith said that Keynes was the only economist who followed his own theories and through them made a fortune in the stock market.

Investment Highlights

I have learned something from their ideas. Your keys to investing are:

  1. Careful selection of low investment considering its low price relative to its intrinsic value today. Its potential in a given period of years and its relation to other investments available at the time.
  2. Long-term investment, possibly several years, until they meet the expectations is evident that his purchase was a mistake. Admitting mistakes and can not maintain a permanent investment.
  3. A balanced investment position, very important and then talk of diversification, not only as a variety but there was no correlation between the assets. Even managers who are now confused with fragmentation of portfolio diversification.
  4. Investing in small companies and have good knowledge of them. Gave much more priority to the analysis of the breadth of the portfolio.
  5. As is clear from his analysis he believed in industrial companies with a low distribution of profits via dividend and reinvestment in the business very profitable in the long term. Possibly the idea of investment in industrial enterprises is not a priority in his time, but if it is valid to the reinvestment of profits is the most profitable for the company.

I dared to make this presentation of the Bloomsbury group, knowing that it is no great contribution to the economy or the stock market but it is a very interesting group that I have raised another daring that is the creation of a virtual group led by Keynes in which they will be killed and thinkers as belonging to various currents of thought that express their views on the current economic situation and stock market.

Of course, the conversation is entirely fictional, but their comments by using the way of thinking that made possible reflections on topics which I think might relate to the current situation. In principle I have decided who will be participating, but it is likely to accompany the statesman Machiavelli Keynes, writers Oscar Wilde (he died when they created the group but as they shared their struggle against Victorian morality) and Baltasar Gracian and some another look by a return to the past.

The characters do not necessarily have to be the economic world, is a heterogeneous group in terms of profession, as it was Blommsbury and from different periods and currents of thought that is a very risky, difficult and laborious but I guess it is fun and I hope understanding of the predictable errors that occur.