NGPF Podcast: Tim Talks to Investor, Author and Student of the Markets, Meb Faber

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May 04, 2018
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Podcasts, Investing, Index Funds

Meb Faber turned his hobby into a passion and co-founded Cambria Investment Management. Listening to Meb you hear the passion not only of an investor but also an entrepreneur who created a firm based on his investing philosophy. He studies the markets and creates portfolios based on opportunities that Mr. Market provides. He uses his writing of books and white papers as a discipline to force him to elucidate his evidence-based approach. And hey, he puts his money where his mouth is—literally!—by investing 100% in Cambria's funds. 

Details:

  • 0:00–1:06 Introduction
  • 1:07–2:28 What’s up with the Wahoos?
  • 2:29–6:59 How Meb’s hobby became his career
  • 7:00–10:31 The agony & ecstasy of being an entrepreneur
  • 10:32–15:49 The challenge of the stock market game
  • 15:50–23:09 Meb’s suggestions for NGPF’s upcoming game…
  • 23:10–26:51 Cambria Investments practices what it preaches
  • 26:52–27:26 A word from NGPF
  • 27:27–34:34 The “cheeseburger index” & “mutual fund salad”
  • 34:34–37:10 Hey, Teachers! You’ll want a fiduciary for sure
  • 37:11–43:39 How Meb stays up-to-date today
  • 43:40–54:25 What’s up with Cambria Investments?
  • 54:26–57:12 Parting words of advice
  • 57:13–57:59 Conclusion

Companies mentioned in podcast:

Meb’s favorite resources

 

QUOTES:

  • “For me, it’s much more important to have a rules-based approach because you can eliminate a lot of the behavioral biases we all have as investors.”
  • “So if there are some Millennials listening in on this [podcast] and you haven’t been through a bear market yet, you may say, ‘I have a long-term time horizon; I’m going to be 100 percent in stocks.’ And then you go through a bear market and lose half of your money or worse.”
  • “A lot of people just look at investment performance. That’s almost all they look at. But how many people are looking at process, which is really what matters more?”
  • “ Personal financial decisions are important… [especially] when you don’t have a ton of money.”
  • “Investing is the only business where when things go on sale, everyone runs out of the store.”

About the Authors

Tim Ranzetta

Tim's saving habits started at seven when a neighbor with a broken hip gave him a dog walking job. Her recovery, which took almost a year, resulted in Tim getting to know the bank tellers quite well (and accumulating a savings account balance of over $300!). His recent entrepreneurial adventures have included driving a shredding truck, analyzing executive compensation packages for Fortune 500 companies and helping families make better college financing decisions. After volunteering in 2010 to create and teach a personal finance program at Eastside College Prep in East Palo Alto, Tim saw firsthand the impact of an engaging and activity-based curriculum, which inspired him to start a new non-profit, Next Gen Personal Finance.

Danielle Bautista

Danielle is a native of Southern California and a recent graduate from the University of Maine, where she braved the frigid winters—a feat in and of itself—and earned her Bachelor's degree in International Affairs. She has a passion for working with non-profit organizations and serving populations in underprivileged communities. When Danielle isn't writing NGPF blog posts, spearheading various outreach projects, or managing contests and flash surveys, you can find her doing some sort of outdoor activity, learning a new hobby, or cracking what she thinks are witty puns!