X-Message-Number: 1166
Date: Thu, 27 Aug 92 03:03:30 -0500
From:  (Steve Jackson)
Subject: Re:  cryonics: #1154 - #1157 (Part 2 of 2)

Actually re: Financial Debate
I am not competent to discuss large-scale financial maneuverings in 
detail, but one truth stands out in Eric Klen's position: Alcor's
money needs professional management, and the Board must not pro-
crastinate in following the professional's advice.

Yes, the Board has the final responsibility. But with money management
as with other kinds of management, the responsible thing to do is to
pick someone reliable and monitor their results, NOT to micromanage
in a category you don't understand. Note that I am not accusing the
Board of doing this, because I don't know! But it's a conclusion that
could be drawn from some of the posts.

There are always solutions. If Mr. Klien is so disliked by the Board
that they cannot bear to follow his advice, let them find another
advisor; I'm sure he would prefer this outcome to continued
non-professional management. If it is impossible, for whatever reason,
for the Board to act quickly, then let them warn their professional
advisor that they want recommendations that will not go stale in a
month, and that they want a quick warning if events change a 
recommendation while they are studying it. Of course, it is far harder
to make good recommendations under these strictures, but certainly
it is not impossible.

Of a certainty, Alcor should be more conservative in its investments
than most entities. But "conservative" is "careful," and few things
are more careful than getting and following the advice of a trustworthy

Should we buy gold? It should be part of the portfolio. So should
foreign securities. The more we diversify, the more we are tied
in to the world economy and insulated from local problems.

[ Since this "Money Update" thread has more to do with Alcor management
  than cryonics itself, I'll put further "Money Update" messages in
  the 0014.* thread (which probably is where they should have gone
  from the beginning). - KQB ]

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