What 's a "non Social Security state"? ~2:42 mark: "if you're a Public Employee you are a participant in the Nevada retirement system we're a non-social Security State so we are the the primary source of retirement income for for all the public employees"
Certain pension benefit contracts are negotiated to be funded “in lieu of Social Security”. For example, some police unions structure deals where they do not pay into or receive Social Security. Instead, they only pay into their police pension. The pension benefit must be at least as generous as Social Security.
PE has added returns and diminished vol (as long as we don’t mark to market and discount for illiquidity🤣). This fella has obviously had an amazing run, and he has forgotten more about portfolio management than I will ever know. That said, if I were him, I would retire right now and accept whatever lump sum buyout is available to the fund he has successfully managed.
Meb Meb Meb, he gave you a big hint, telling you he made very few changes over the years, and usually 5% or more, meaningful ones. I kept waiting for you to ask him to list out all of them over the past 20 years, and why, probably just a dozen or so.
As someone that was index funds my whole life, I started to take more calculated risk ten years ago jumping into things that I knew and had conviction in (finance/tech). I put 40% in Bitcoin, apple, Amazon, Tesla Nvidia in 2013. It's paid off like crazy. Today that allocation is 99% of port because of gains. You can play it safe but take calculated risk especially if you feel strongly about it.
The hard part is that you are very much the needle in the haystack. For every one of you there’s thousands who went all-in on companies or sectors that didn’t pan out - either total return or timing. I knew an old guy that worked for GE and had all of his money there. Worked great until September of 2000 and lost 80% by 2009. GE didn’t recover the price until this year - and he didn’t live long enough to see it. The question now: could you take some money today and replicate the same success with a new crop of active selections?
U.S. Treasuries are no longer a portfolio diversifier. In fact, the 10-year now trades at a discount to investment grade bonds. In ten years, USTs will be relegated to junk bond status.
No esg / net zero lecture? How refreshing. Nevada public ee’s are lucky to have you, Steve.
Great interview, Meb.
sharp guy, people dismiss it as simple but true sme genius is simplifying complex problems, thank you!
Appreciate this look into the industry and how small to medium funds think of allocation. Thanks Meb
Awesome interview, Meb. Really great message from your guest.
What 's a "non Social Security state"?
~2:42 mark: "if you're a Public Employee you are a participant in the Nevada retirement system we're a non-social Security State so we are the the primary source of retirement income for for all the public employees"
Certain pension benefit contracts are negotiated to be funded “in lieu of Social Security”. For example, some police unions structure deals where they do not pay into or receive Social Security. Instead, they only pay into their police pension. The pension benefit must be at least as generous as Social Security.
@@libertatem_semper Thank you Libertatem!
PE has added returns and diminished vol (as long as we don’t mark to market and discount for illiquidity🤣). This fella has obviously had an amazing run, and he has forgotten more about portfolio management than I will ever know. That said, if I were him, I would retire right now and accept whatever lump sum buyout is available to the fund he has successfully managed.
Meb Meb Meb, he gave you a big hint, telling you he made very few changes over the years, and usually 5% or more, meaningful ones. I kept waiting for you to ask him to list out all of them over the past 20 years, and why, probably just a dozen or so.
As someone that was index funds my whole life, I started to take more calculated risk ten years ago jumping into things that I knew and had conviction in (finance/tech). I put 40% in Bitcoin, apple, Amazon, Tesla Nvidia in 2013. It's paid off like crazy. Today that allocation is 99% of port because of gains. You can play it safe but take calculated risk especially if you feel strongly about it.
The hard part is that you are very much the needle in the haystack. For every one of you there’s thousands who went all-in on companies or sectors that didn’t pan out - either total return or timing. I knew an old guy that worked for GE and had all of his money there. Worked great until September of 2000 and lost 80% by 2009. GE didn’t recover the price until this year - and he didn’t live long enough to see it.
The question now: could you take some money today and replicate the same success with a new crop of active selections?
He is pretty smart! He is pretty much using 80 /20 principle.
I feel like public markets are better than private if others are more informed than you are
U.S. Treasuries are no longer a portfolio diversifier. In fact, the 10-year now trades at a discount to investment grade bonds. In ten years, USTs will be relegated to junk bond status.