Given the year 2022 has shaped up to be so far, we thought this would be a great time to catch up with one of the true luminaries of modern investing to talk about he wraps his head around successful long-term investing.
Meb Faber, illustrious co-founder and CIO at Cambria Asset Management joins Pierre and Adam to catch up on markets and investing and how he has hacked the long term investing problem.
Our conversation begins with a famous quote from another investing legend and goes from there. We get into an elemental discussion about what investors can begin to do now, where to invest, where to diversify, and how to think of setting themselves up for success going forward.
Highlights, we discuss:
• Lots of people say they are long term investors, but…
• how do you set yourself for long term investing success
• what’s the biggest problem in long-term investing – why?
• how can you set yourself up (what investments?) so that you can remain a long-term investor no matter what happens (like this year)
• How do you transition from 60/40 to something elementally more durable?
• What are the current market’s portfolio building blocks – why?
• How much time is required?
• What are the easy hurdles, the structural basic investments that should be added?
• What to invest to diverge from hope that the past bubble will recover
• Is 60:40 over?
• ‘Trinity’ portfolio construction
• Is technology providing better recipes?
• What are the ingredients of a portfolio that allows you to remain invested no matter what happens?
• Be contrarian – What is contrarian?
• What’s the way around inflation and higher rates
• What is the most contrarian investment you can make today?
• falling in ‘love’ with your investments complicates everything
• what is all that matters in investing over the long term?
• “To be a good investor, you have to be a good loser.”
• Question: Assuming no tax repercussions, if you could liquidate your entire portfolio and start over anew, what would you put in your new portfolio?
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Where to find Meb Faber:
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Where to find us:
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“You don’t have to be brilliant, just wiser than the other guys, on average, for a long time.” Charlie Munger
Welcome to Raise Your Average, our deep dive journey into learning from the people and process behind the world of investing. Through conversations with leaders in the investments game, we peel back the layers of the onion on how these holders of the keys to the kingdom allocate their time, their energy, and their dollars.
We are all students and we are all teachers. We are the average of the 5 people we spend the most time with. Come hang out with us for a while and raise your average, as we raise ours.
Music credit: In Hip Hop, Paul Velchev (8MJZA6T3LK)