Thank you for watching this video! If you enjoyed it, you might also like our conversation with Meb where he explained how he manages his personal portfolio. You can find it here th-cam.com/video/oY_PwABNJ7M/w-d-xo.html
Hi Eric, I couldn't agree more! Since I just recently discovered Meb Faber, I wish I came across his content way earlier! I've seen some of Lyn Alden's work and I'll definitely need to check out David Stein as well. He's seems to be an OG Financial Investment Educator. Thanks for top picks, Eric! In our world of constant noise and distractions it's so hard to find anything genuine and valuable to study and follow :( As you made such long journey and discovered these 3 gems of financial literacy, I wonder if you could name a few other names as your "honorable mentions" I also wonder what subjects and investment strategies have you been most focused on and interested learning in your journey. Currently, I'm trying to educate myself on Trend Following trading strategies. Prior I have been trying to learn on Buffett Munger's Value Investing and Ray Dalio"s All-Weather Porftolio. I'd would like to incorporate 50% Trend Following & 50% Value Investing for my small porftolio. I need to learn and master this craft as much as I can, otherwise I'll stay as a slave for life.
My favorite valuation technique from 1999: price/Eyeballs. I had some words with a sell side analyst that he should be using "pairs of eyeballs" and was therefore double counting!
St Petersburg Stock Exchange outperformed the US Dow for the 50 years leading up to 1917. Iam sure some 19th century Russian trend followers, value investors etc did exceedingly well. Then it went to zero. in 1917. The stock exchange was closed for decades. So there is that risk out there too.
The reason Americans dont love gold the way Asians and Europeans do is America is a young country. Those other countries have seen waves of currency destruction and hyperinflation - and the cultural DNA remebers that those that had some coins stashed seemed to survive tose episodes.
Stock ownership gives you a partial ownership of a company. So by receiving dividend you basically taking money from yourself, give it to yourself and pay tax on it.
Almost seems contradictory to say that investors should be allocating to trend and at the same time saying that it should take 10-20 years to evaluate an investment. Trend algorithms by definition chase performance. Perhaps reframing to set expectations about time horizons for different asset allocations to work effectively would be better than saying one needs decades to evaluate them?
I still firmly believe that multiple asset return is much safer and wiser than portfolio with 50% of stock portfolio. The volatility of stock and correlation to S&P500/Nasdaq Composite would make it vulenerable to certain period such as COVID 19 and dot-com bubble.
“An ounce of sauce covers a multitude of sins.” - Anthony Bourdain in a similar light.. "A Dividend by a Corporation covers a multitude of sins" Primarily dividend focused investors will withstand an incredible amount of low-quality performance and Corporate misbehaviour.
Companies dont live forever. Average life of a US company is under 15 years. Let us say a company goes through 3 phases - Rapid growth, mature, distress. Well, certainly no dividends paid in phase 1. In the mature phase , no dividends, share-buybacks at high stock prices, then comes the decline distress - maybe issue stock at a low price just to survive. Then the end. If no dividends are ever paid over the life of a company , what is the discounted cash flow value of that business? Zero!
In this 15 years: does this include non-quoted companies. And does it include M&A ? Cause family owned business sometimes just close when the founder dies.
Lol there was some very sloppy logic in the international investing section. He could be right on all the factual statements he made, but the way they are strung together doesn't stand up. The section starts with international vs US stocks and he immediately slips in bonds the mix. Etc. Or he ends with talking about international investing from the non-US perspective. No one would argue that the rest of the world shouldn't diversify internationally... Yeah, *into US stocks!* Hurr durr. Makes me want to reexamine everything else he says... which I don't have time for when there's so many other insightful voices. Makes me wonder if his whole shtick is being the "well aCksHuaLly" guy.
Thought that was a weird statement to. Perhaps in the distant future, but right now those kind of developments could only come out of UK, Europe, China, Taiwan, South Korea etc in the near term, though the States are miles ahead.
50% stock allocation is not very convincing and very risky as I prefer to least 25% stock allocation, which would be safer and sustainable if you would like to achieve the consistent positive return to have decent sharpe ratio with optimal beta below 0.06. and it would be extremely dangerous to have 50% exposure to stocks as only a few stocks have low correlations to S&P500.
Stock ownership gives you a partial ownership of a company. So by receiving dividend you basically taking money from yourself, give it to yourself and pay tax on it.
Thank you for watching this video! If you enjoyed it, you might also like our conversation with Meb where he explained how he manages his personal portfolio. You can find it here th-cam.com/video/oY_PwABNJ7M/w-d-xo.html
Meb is a national treasure. Have learned more from him, Lyn Alden, and David Stein than all other financial media combined.
Hi Eric,
I couldn't agree more! Since I just recently discovered Meb Faber, I wish I came across his content way earlier!
I've seen some of Lyn Alden's work and I'll definitely need to check out David Stein as well. He's seems to be an OG Financial Investment Educator.
Thanks for top picks, Eric! In our world of constant noise and distractions it's so hard to find anything genuine and valuable to study and follow :(
As you made such long journey and discovered these 3 gems of financial literacy, I wonder if you could name a few other names as your "honorable mentions"
I also wonder what subjects and investment strategies have you been most focused on and interested learning in your journey.
Currently, I'm trying to educate myself on Trend Following trading strategies. Prior I have been trying to learn on Buffett Munger's Value Investing and Ray Dalio"s All-Weather Porftolio.
I'd would like to incorporate 50% Trend Following & 50% Value Investing for my small porftolio. I need to learn and master this craft as much as I can, otherwise I'll stay as a slave for life.
Great guest! 🎉🎉🎉
My favorite valuation technique from 1999: price/Eyeballs. I had some words with a sell side analyst that he should be using "pairs of eyeballs" and was therefore double counting!
That was great. We wish we could value the podcast on a price/individual eyeball basis but we likely wouldn’t have any takers.
I have no FRIGGIN' idea, what this means.
Great guest and interview !!!
Thank you!
St Petersburg Stock Exchange outperformed the US Dow for the 50 years leading up to 1917. Iam sure some 19th century Russian trend followers, value investors etc did exceedingly well. Then it went to zero. in 1917. The stock exchange was closed for decades. So there is that risk out there too.
The reason Americans dont love gold the way Asians and Europeans do is America is a young country. Those other countries have seen waves of currency destruction and hyperinflation - and the cultural DNA remebers that those that had some coins stashed seemed to survive tose episodes.
If you consider VOO vs VXUS the US wins by almost double during the past 10 years.
Also, GLD outperforms TLT massively during the past 10 years.
"The Fed is doing a good job." - I am happy to have the option of a reasonable rate in a "savings account".
Stock ownership gives you a partial ownership of a company. So by receiving dividend you basically taking money from yourself, give it to yourself and pay tax on it.
Wrong. dividends are paid out of profits.
@@sankarasubramaniambala7779 But you already got profits, and you just pay yourself the dividend from your own profit.
Almost seems contradictory to say that investors should be allocating to trend and at the same time saying that it should take 10-20 years to evaluate an investment. Trend algorithms by definition chase performance. Perhaps reframing to set expectations about time horizons for different asset allocations to work effectively would be better than saying one needs decades to evaluate them?
I still firmly believe that multiple asset return is much safer and wiser than portfolio with 50% of stock portfolio. The volatility of stock and correlation to S&P500/Nasdaq Composite would make it vulenerable to certain period such as COVID 19 and dot-com bubble.
“An ounce of sauce covers a multitude of sins.”
- Anthony Bourdain
in a similar light..
"A Dividend by a Corporation covers a multitude of sins"
Primarily dividend focused investors will withstand an incredible amount of low-quality performance and Corporate misbehaviour.
Meb has the best intro music in the game lol
Companies dont live forever. Average life of a US company is under 15 years. Let us say a company goes through 3 phases - Rapid growth, mature, distress. Well, certainly no dividends paid in phase 1. In the mature phase , no dividends, share-buybacks at high stock prices, then comes the decline distress - maybe issue stock at a low price just to survive. Then the end. If no dividends are ever paid over the life of a company , what is the discounted cash flow value of that business? Zero!
you are not taking into account cash paid to shareholders via buybacks
In this 15 years: does this include non-quoted companies. And does it include M&A ? Cause family owned business sometimes just close when the founder dies.
Lol there was some very sloppy logic in the international investing section. He could be right on all the factual statements he made, but the way they are strung together doesn't stand up. The section starts with international vs US stocks and he immediately slips in bonds the mix. Etc. Or he ends with talking about international investing from the non-US perspective. No one would argue that the rest of the world shouldn't diversify internationally... Yeah, *into US stocks!* Hurr durr. Makes me want to reexamine everything else he says... which I don't have time for when there's so many other insightful voices. Makes me wonder if his whole shtick is being the "well aCksHuaLly" guy.
Some experts said there have been studies indicating most of the return over time comes from dividends!
What if Meb is a idiot and i agree with him?
Oh please. Big ai developments may come from Brazil or Africa.
Political correctness will destroy your portfolio
Thought that was a weird statement to. Perhaps in the distant future, but right now those kind of developments could only come out of UK, Europe, China, Taiwan, South Korea etc in the near term, though the States are miles ahead.
50% stock allocation is not very convincing and very risky as I prefer to least 25% stock allocation, which would be safer and sustainable if you would like to achieve the consistent positive return to have decent sharpe ratio with optimal beta below 0.06. and it would be extremely dangerous to have 50% exposure to stocks as only a few stocks have low correlations to S&P500.
Stock ownership gives you a partial ownership of a company. So by receiving dividend you basically taking money from yourself, give it to yourself and pay tax on it.