Aug 27, 2024
Think Globally When Looking for Stocks to Invest In w/ Meb Faber
AZ TRT 2.0 Flashback S05 EP32 8-18-2024
Things We Learned This Week
- Investment Plan – write it down and stick to it, give yourself rules and guard rails
- Allocation – Global Stocks, Global Bonds, Global Assets (Real Estate, Commodities, etc)
- Talmud Portfolio – 2000 year old strategy – 1/3 of $ in land, business, reserves
- Invest With the House – monitor the 13F of big investors to get ideas
- Market Cycles – importance of identifying them, to know where you are at when investing to avoid Bubbles and Mania
Guest: Meb Faber at Cambria Investments https://www.cambriainvestments.com/
Website / Blog / Books: https://mebfaber.com/
Twitter: https://twitter.com/mebfaber
Book Recs / Investing Info: https://mebfaber.com/reading-list/
Meb Faber takes us on an in depth discussion on investing, doing your research, Quant investing, and looking at stocks outside the US to diversify your portfolio. Why following the big investors 13Fs, aka Invest with the House, can reap benefits and ideas. He is a historian on investing and always crunches the numbers and data.
Mr. Faber is a co-founder and the Chief Investment Officer of Cambria Investment Management. Faber is the manager of Cambria’s ETFs and separate accounts. Mr. Faber is the host of The Meb Faber Show podcast and has authored numerous white papers and leather-bound books. He is a frequent speaker and writer on investment strategies and has been featured in Barron’s, The New York Times, and The New Yorker. Mr. Faber graduated from the University of Virginia with a double major in Engineering Science and Biology.
He has written multiple Books on Investing – Global Asset Allocation, Global Value, Invest With the House, Shareholder Yield, Ivy League Portfolio, The Best Investment Writing
You can Download some for Free here: https://mebfaber.com/books/
Notes:
Written Investment Plan, and stick to that plan
Learn thru experience what your real risk tolerance is when you actually lose $
Do you have the fortitude to stick to your investing plan, when the stock has a 50% draw down
Investment Market History – over a 200 year period to give you guide posts
Expectations of returns that are more realistic, to avoid disappointment
Market Cycles – living thru cycles to identify them
Long Term Investment Horizon - 10 to 20 years, downturns in stocks, bonds, gold can last years
Example – you expect to stay in your house for 10 – 20 years
Short term leads to chasing returns and bad behaviors
Deep Research on Investments, Quant analysis and review the numbers to avoid biases
Allocation – Global Stocks, Global Bonds, Global Assets (Real Estate, Commodities, etc)
Meb book rec: Triumph of the Optimists – historical review of market returns, also Jim Rogers books
Home Country Bias – most people in US invest 80% in US stocks, look globally ( and allot 50% to US)
Diversify Worldwide – research European or Japanese stock market for ideas
Biggest Stocks hit a size that will have trouble going forward growing bigger (got from $1 tril, to $10 tril size), also have a target on your back, biggest stocks over time will underperform the index
ETFs – worldwide and foreign markets
Invest with the House – monitor the 13F of big investors for ideas, institutional investors with $100 mil in assets must do a quarterly filing of stocks they hold (45 days after)
Analysis Paralysis – Simplicity is important, have an easy strategy
Talmud Portfolio – 2000 year old strategy – let every man invest 1/3 of $ in land, business, reserves
Meb modern translation – stocks, real assets, cash & bonds
Hard to beat strategy, can buy ETFs at low cost, and re-balance
Monitor details of taxes and fees, be defensive - Diversify your net worth to business, land, etc.
Start investing at a young age, save $ and stay invested, focus on low fees
Then Advanced Strategies of Value Investing, Trend Following, Tail Risk, etc.
Investing Topic:
https://brt-show.libsyn.com/category/Investing-Stocks-Bonds-Retirement
‘Best Of’ Topic: https://brt-show.libsyn.com/category/Best+of+BRT
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