The Wealth of Nations

Book 4, Chapter 4


Download Preston's Free Checklist

Download Preston's free checklist. His checklist was developed after spending countless hours studying billionaires like, Warren Buffett, Carl Icahn, and Ray Dalio. With his checklist, you can find safe picks that protect and grow your principal. Additionally, Preston reads a lot of books and writes an executive summary for each book he reads. If you download his checklist, you will be added to his monthly e-mail list where he sends his book summaries. There are never any advertisements...ever. Here's an example of one of Preston's executive summaries, based on the book written by Billionaire Charlies Koch.

Chapter 4 Summary

Merchants and manufacturers are keen to sell their goods to the most extensive foreign market possible. Since their home country has no jurisdiction in foreign markets, they do not have any monopoly there. As a result, they petition their governments to create incentives for export. Drawbacks are one such incentive and perhaps the most reasonable (rebate of taxes or duties paid on imported goods that have been re-exported).

Enabling a merchant to recuperate the excise or inland duty imposed upon his domestic industry does not direct a greater quantity of goods to be exported than would have been had no duty been imposed. Such incentives tend to preserve the natural division and distribution of labor in a society.

Before the revolt of our North American colonies, we had the monopoly of the tobacco production in Maryland and Virginia. In order to facilitate export of surplus tobacco, drawbacks were introduced, provided the export took place within three years.

We still have the monopoly over sugar production in the West Indian islands. If sugar is exported within a year, therefore, all import duties importing are drawn back.

Some goods are prohibited from importation; they may be imported and stored for export, upon payment of duties, but there will be no drawbacks for exportation once they are exported.

Next Chapter

Don't get lost in the Wall Street Fee-Factory

It's taken us a few years to finally figure out the right mix of tools that get results and save money. If you click on the toolbox, you'll see an article we wrote that lays-out the brokers and research tools we personally use.

Got Questions?

The Investor's PODcast

Get a free autographed copy of the Warren Buffett Accounting Book or Warren Buffett's Three Favorite Books. Simply submit your question to The Investor's PODcast. If your question gets answered on the air, the founders of this site, Preston Pysh and Stig Brodersen, will send you a free signed copy of their book!

The Warren Buffett Forum

Ask your question at the Buffett's Books money forum and interact with other smart investors like yourself. You won't find any day traders on this forum! Here's the link to The Warren Buffett Forum.