Great discussion with investor Kyle Bass regarding investing strategy. Basically, he likes making bets on ideas where a small amount of money can fund a potentially very high payoff. His main example given is the decline in Japanese bonds – with interest rates almost zero in Japan, and with nearly 200% debt to GDP, which Bass says means that a 1% increase in interest rates in Japan would consume 25% of national tax revenue. He feels they will default in some capacity.
See his interviews on CNBC here: