New Capital Management

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Greece 2021

I write to you toward the end of a splendid “trip of a lifetime” with my closest old friends…


Dear Clients:

I write to you toward the end of a splendid “trip of a lifetime” with my closest old friends, a group which constitutes a major component of my own personal capital.  May everyone be blessed to either have or find such extraordinary wealth in their lives.

I had never before been to Greece (our primary destination, I will spend a few days in Istanbul afterwards).  Greece is the birthplace of democracy, an egalitarian system where mature adult citizens share both rights and responsibilities.  This system of mutualism developed precisely where it did because of the geographic profile of the region.  Legend has it that a scout sent by ship to explore the Aegean Sea reported back an extraordinary sight: a “sea of cities.”  Inhabitants of cities perched on small rocky mountainous islands found that they were highly dependent upon more than just themselves if they were to live comfortable, productive, and safe lives.  Beneficial communication and cooperation both within and between islands resulted in systems of laws and governance wherein decision making and power was shared by agreement.  That system eventually became the bedrock system of modern Western societies and economies, including our own.

It is no coincidence that this advanced form of government - which requires its infants, youths, and young adults to grow up, put aside purely selfish impulses, and accept obligations and realities - coincided with the creation of other human realms including theater, philosophy, medicine, science, mathematics, and commerce.  Just as Greek society grew wealthy in these realms, so too do the world’s modern democracies generally experience higher standards of living than societies without functioning democracies.  As I have written about several times in my letters, the market values of companies in democratic countries far, far outweigh those in countries with other systems of government.

Modern Greece, which is part of the European Union, deeply impresses me.  My time here has introduced me to the delightful climate, fantastic cuisine, dazzling landscapes, and most of all, the industrious, happy, healthy, well-educated, and famously hospitable Greek people.  Everywhere I have been, I have been treated with the utmost kindness and respect, with not a single negative interaction with anyone at any time in any place.  Those who have provided our transportation and accommodations, cooked and served our food, guided our tours, and met us in our daily lives, have done so with joy, civility, and pride.  The Greek countryside teems with abundant groves, orchards, fields, and vineyards.  Greece is extraordinarily mountainous, offering year round outdoor activities.  And the Greek Islands are, of course, internationally known destinations to go and drop your cares in the gleaming Aegean Sea.  Greek cities are safe, their roads are very well maintained, their transportation systems are clean and on time - I could go on and on.

The United States itself has learned, and could learn, many things from Greece.  The founders of the U.S. government looked to Classical Greece, the historic “height” of ancient Greece, for guidance in government, architecture, art, and more.  In our present period, where so many in our country have either forgotten or never been taught that with great rights granted to the individual come great responsibilities to the commonwealth, Greece can serve as a beacon.  Its people, right now, exude a civility towards each other that is often unfortunately lacking in my own country.  Greece, a crossroads for world cultures for thousands of years, knows that “we are all connected”, especially in our modern times.

Life, however, has not always been easy for Greeks, and Greeks are often the first to criticize themselves and their perceived shortcomings.  Situated at the point where three massive continents - Europe, Asia, and Africa - meet on both water and land, Greece has been invaded and occupied more often in the past two thousand years than it has been independent.  The Roman, Byzantine, and Ottoman empires all dominated Greece in their own times.  Greece and Turkey have engaged in hostilities and ethno/religious civil warfare at several historical junctures, especially in the early 1920’s after the fall of the Ottomans.  Nazi Germany and its ally Fascist Italy failed to permanently conquer Greece, and in the process tragically sent over 50,000 Greek Jews, most from the historic city of Thessaloniki, to their deaths at Auschwitz.  In the late 1960’s, the Greek military took control of Greece’s government, before democracy was re-established after seven years.

Most recently, after joining the European Union, Greece has experienced a wrenching fiscal economic crisis and questions about its very place in Europe.  Greece faces many of the same problems and issues that the rest of the world does.  A few weeks before my arrival, the island of Evia, one of Greece’s largest, experienced massive climate-related fires that destroyed ancient forests and towns, and rained ash on Athens.  Greece’s infrastructure has been modernized in many places, but much more remains to be done, including enhancing Internet access.  Traumas from the financial crisis remain fresh.  And Greece has faced challenges from the immigration of Syrian refugees fleeing the carnage introduced into the Middle East by the U.S. Iraq War, and who seek new lives in the relative safety of the European Union.

Regardless of these and other challenges, now that I have finally come here I can say without question or hesitation: Greece is of Europe, and Europe is of Greece, and the bright peaceful futures of both are together.  Your globally diversified portfolio, assembled and managed by New Capital, includes significant investments in Europe, of which Greece is a part.  I could not be more encouraged to own these investments in my own portfolio, and in yours as well.  For our retiring and retired clients, Greece offers an enticing Golden Visa program, where purchases of real estate valued at minimum 250,000 euros can include visa access to the entire Schengen EU area (which includes France, Germany, etc.).  Greece is an ideal place for U.S. remote workers, given its time zone advance over U.S. locations and its amazing climate.  English is happily spoken all over Greece. And - Greece is not expensive.  Food, lodging, transportation - practically everything - comes at high quality for very reasonable prices.

So, please come to Greece.  And if you decide to do so, please consider going, as I have done, with my great friend, Alex Safos, the proprietor of Indigo Gazelle tours.  Alex, a travel professional, guides private family and friend tours of 5-10 people to Greece and Morocco, and the extraordinary experience of our group - from the great cities of Athens and Thessaloniki, to the island of Ikaria, to the unbelievable mountain monasteries of Meteora - has only whet my interest in seeing more of this remarkable place.

Tomorrow, most of our group will return to the United States, but Alex and I will continue on to Istanbul, Turkey for five days. Istanbul, previously known as Constantinople, the gleaming capital of the Eastern Roman, Byzantine, and Ottoman empires, sits astride the vital Bosporus Straits that connect the vast Euro-Asian interior to the Mediterranean Sea and the world’s oceans. For over a millennium, all roads and all seas truly led to Istanbul, and I could not be more excited that mine does now as well.

Leonard Golub, CFA
Fiduciary Financial Advisor


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