It had been a while since we riffed with our good friend Meb Faber (co-founder and the Chief Investment Officer of Cambria Investment Management), and as always, he didn’t disappoint. Our thought-provoking conversation covered topics such as:

• Meb’s big announcement – his Idea Farm, which curates investment content from a wide variety of sources, is now free
• Recent equity market dynamics and the pain that historically comes with inflation
• Why dogmatism and inflexibility are two of the worst traits for investors
• Never allowing your ideas to become part of your identity
• Diversification and ensembles are the right way forward, but most investors can’t follow because they are secretly gamblers at heart
• Marc Faber is not Meb’s dad
• Chasing the hot hand is rarely a winning investment strategy for the long run
• The irresistible allure of lottery-ticket stocks vs the Law of Large Numbers
• The incredible round-trip by ARK ETFs and a following that resembles a religion
• Every investment makes you richer or wiser, but never both
• The power of compounding and the most unbelievable investment statistic you’ll ever hear
• Most professional investors have a process for what they buy, but no process for what they sell
• The right time horizon to evaluate a strategy is MUCH longer than most investors can stick with if it doesn’t outperform from the start
• And much more

This is “ReSolve’s Riffs” – live on YouTube every Friday afternoon to debate the most relevant investment topics of the day, hosted by Adam Butler, Mike Philbrick and Rodrigo Gordillo of ReSolve Global* and Richard Laterman of ReSolve Asset Management.

 

*ReSolve Global refers to ReSolve Asset Management SEZC (Cayman) which is registered with the Commodity Futures Trading Commission as a commodity trading advisor and commodity pool operator. This registration is administered through the National Futures Association (“NFA”). Further, ReSolve Global is a registered person with the Cayman Islands Monetary Authority.