#102: Radio Show: The "Stay Rich" Portfolio... A Senator Wants to Ban Share Repurchases... and Listener Q&A

69 minutes

Episode 102 has a radio show format. In this one, we cover Meb’s Tweets of the Week, some write-in questions, Twitter questions, and our first-ever call-in question.

We discuss the “Stay Rich” portfolio, and the unfortunate reality that even the safest portfolios can suffer ~25% drawdowns.

Next, there’s discussion of stock buybacks and a recent push from Senator Tammy Baldwin to introduce a bill that would prohibit companies from repurchasing their own shares (she claims it’s exacerbating the wealth gap).

Then, with volatility showing some life in the market, there’s discussion of volatility clustering. Next up is the investing service, Robinhood, which is now referring to calls and puts as “going up” and “going down.” Also, an ETF for companion pets filed by Gabelli.

We then dive into questions. Some that you’ll hear Meb address include:

  • How do you keep a level head when markets are imploding around you?
  • Meb and Elroy Dimson discussed the historical returns of housing and indicated that owning a house is not a high-performing investment, relative to other asset classes. However, if the alternative to buying a house is paying rent, often at a similar cost to a monthly mortgage payment, how does this factor in to the assessment of the investment?
  • I understand that any given strategy can underperform the market for long periods of time. What is a reasonable time-frame to fairly evaluate the results of any particular strategy?
  • Valuation difference in countries is often caused by sector structure. Can you explain that?
  • The AUM of Target Date Funds was at $250B in '08. Many investors were shocked at the bad performance in '08. Target Date Funds AUM is now $900B. What's the industry's level of responsibility to educate?
  • Is Russia worth the current political risk for long term investor (5-7 years)? If so, is it best to look at specific Russian equities or an index such as the RSX?

All this and more in Episode 102.

More episodes from The Meb Faber Show

#182 - Larry Hite - I Want To Be In A Position Where Something Great Can Happen…If I Don’t Get That, I Don’t Want To Play

In episode 182 we welcome our guest, Larry Hite. Larry and Meb start off the conversation with Larry’s origin as a trend follower, and the parallels …

#181 - Radio Show: Zero Trading Commissions…Valuations…And Trend Following

Episode 181 has a radio show format. We cover a variety of topics, including the new ETF rule:

  • Major brokerage firms dropping ETF trading …

#180 - Rodrigo Gordillo - “This Craftsmanship Perspective Is About Identifying The Difference Between Complex Versus Robust”

In episode 180 we welcome back our guest, Rodrigo Gordillo. Meb and Rodrigo start the conversation with a walk through Rodrigo’s background and his experience growing up in Peru. Rodrigo …

The Best Investment Writing Volume 3: Justin J. Carbonneau – 10 Reasons Why It’s Tough to be a True “Intelligent Investor”

Last year when we published The Best Investment Writing Volume 2, we offered authors the opportunity to record an audio version of their chapter to …

#179 - Dan Ferris - What We Do In The Markets, It’s An Unnatural Act…You’ve Got To Have Some Discipline

In episode 179 we welcome our guest, Dan Ferris. Meb begins with a discussion of Dan’s background as a guitarist, and his path into finance.

Dan then provides a high level view of his …

#178 - Nobody Wants To Invest In Your Sh*t

Episode 178 is a Meb Short. In this episode, you’ll hear Meb discuss the transactional nature of investing, finding an investment approach that works, and deploying an objective framework …

How you can listen to this podcast

You can listen to episodes right here on the website, or if you prefer, in a podcast app. Listening in an app makes it easier to keep track of what you’ve already heard, listen without using your data plan and many other conveniences.

Recommended apps
Start listening to #125 - Tom Barton - The Biggest Problem Investors Have is Things Change...and They Don't Change
1:24:56
Start listening to #125 - Tom Barton - The Biggest Problem Investors Have is Things Change...and They Don't Change
1:24:56