#11 – Sam Stovall – Sam’s Seven Rules of Wall Street: Crash-Tested Investment Strategies That Beat the Market

41 minutes

Episode 11 features the always-fun Sam Stovall. Sam starts by making an unlikely connection between Clint Eastwood and investing – “A man’s got to know his limits.” Being aware of his own limits, Sam put together a list of rules to help him win at the game of investing. He and Meb dive in, starting with “Let your winners ride, cut your losers short.” Easier said than done, as most of us tend to hold onto our losers, hoping they’ll come back, while selling the winners (prematurely) to lock in gains. “As January goes, so goes the year” is Rule #2. Sam compares investors to dieters looking for a fresh start every year. Rule #3 is a tweak on “Sell in May then go away.” It turns out that’s almost right, but not quite. The better strategy is “rotate rather than retreat.” Do you know the two sectors which historically will boost your returns if you’ll rotate into them during the summer months? Sam will tell you. Rule #4 challenges the idea that there’s no free lunch on Wall Street. According to Sam, there is. If you construct your portfolio in the right way, you can increase your returns without a commensurate increase in risk. “Don’t get mad, get even” is Sam’s fifth rule. Too many investors are losing money because their portfolios are overweight in a few bad picks. So don’t get mad, “get even.” In other words, look to shift your weightings to correct the imbalance. Rule #6? “Don’t fight the Fed, at least, for too long.” For all you bears over the last few years, this seems especially appropriate. Finally, #7 is Meb’s favorite: “There’s always a bull market someplace.” It turns out Sam and Meb share a fondness for rules-based investing. Sam has his own rules which help him identify these bull markets that are always happening someplace. What are they? Find out in Episode #11.

More episodes from The Meb Faber Show

#279 – Kevin Davitt, John Hiatt, Cboe - Relative To The Overall Portfolio, Small Allocations To Tail Risk Ideas Can Have An Outsized Impact

In episode 279, we welcome our guests, Kevin Davitt and John Hiatt, both of whom work for the Cboe as the Senior Options Institute Instructor and VP of Derivatives Strategy, respectively.

#278 – Lucas White, GMO - Since Inception Of The Strategy…We’ve Been Buying Companies At A Significant Discount, Yet Our Portfolio Has Had Earnings Growth That Far Exceeded The Broad Equity Market

In episode 278, we welcome our guest, Lucas White, a portfolio manager for the Resources and Climate Change Strategies at GMO.

In today’s episode …

#277: Top Podcasts 2020 – Replay: Rick Rule, Joe Davis, Tom Basso

Episode 277 is a replay of The Meb Faber Show’s top podcasts of 2020. Guests include Rick Rule, Joe Davis, and Tom Basso

Hear Rick Rule discuss the …

The Best Investment Writing Volume 4: Selected Writing from Prominent Investors and Authors

Last year when we published The Best Investment Writing Volume 3, we offered authors the opportunity to record an audio version of their chapter to …

#276 – Craig Wichner, Farmland LP - There’s $2.7T Worth Of Farmland In The U.S…And That’s The Same Economic Value As All The Apartment Buildings In The U.S Or All The Office Buildings In The U.S.

In episode 276, we welcome our guest, Craig Wichner, Founder of Farmland LP, a leading investment fund that generates returns by converting conventional commercial farmland to sustainable …

#275 - David Lau, DPL Financial Partners - The Root Of All Evil When It Comes To Annuities Are Commissions

In episode 275, we welcome our guest, David Lau, Founder and Chief Executive Officer of DPL Financial Partners, a firm focused on the distribution of financial products geared toward the …

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