The Meb Faber Show - Better Investing

The Idea Farm

Ready to grow your wealth through smarter investing decisions? With The Meb Faber Show, bestselling author, entrepreneur, and investment fund manager, Meb Faber, brings you insights on today’s markets and the art of investing. Featuring some of the top investment professionals in the world as his guests, Meb will help you interpret global equity, bond, and commodity markets just like the pros. Whether it’s smart beta, trend following, value investing, or any other timely market topic, each week you’ll hear real market wisdom from the smartest minds in investing today. Better investing starts here. For more information on Meb, please visit MebFaber.com. For more on Cambria Investment Management, visit CambriaInvestments.com.

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710 episodes
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Episodes710

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Nov 16, 2016 · 41 min
Tom McClellan - "Now Everybody Knows What the Outcome Is, They Can Get Back to Focusing on Real Things That Actually Matter” | #29
In Episode 29, we welcome market veteran, Tom McClellan. Meb starts with some background on Tom – he’s been doing financial writing for 20 years, likely making him one of the longest-running financial writers in the business. The guys then provide...
Nov 9, 2016 · 1 hr
Larry Swedroe - "There is Literally No Logical Reason for Anyone to Have a Preference for Dividends" | #28
As we recorded Episode 28 on Halloween, it starts with Meb referencing his costume from the prior weekend’s festivities. Can you guess what it was? He stayed true to his financial roots, dressing as Sesame Street’s “Count von Count.” (Sorry, no photographs.) But the guys jump in quickly, beginning with the subject of Larry’s 15th and latest book – “factors.” Larry tells us that the term “factor” is confusing. He defines it as a unique source of risk and expected return. So which factors should an investor use to help him populate his portfolio? Larry believes there are 5 rules to help you evaluate factors: 1) Is the factor “persistent” across long periods of times and regimes? 2) Is it “pervasive”? For instance, does it works across industries, regions, capital structures and so on. 3) Is it “robust”? Does it hold up on its own, and not as a result of data mining? 4) Is it “intuitive”? For instance, is there an explanation? 5) Lastly, it has to be “implementable,” and able to survive trading costs. The guys then switch to beta. Larry mentions how valuations have been rising over the last century. He references how CAPE has risen over a long period, and points out how some people believe this signifies a bubble. But Larry thinks this rising valuation is reasonable, and tells us why. Meb adds that investors are willing to pay a higher multiple on stocks in low-interest rate environments such as the one we’re in. Next, Meb directs the conversation toward a sacred cow of investing – dividends. He asks about one particular quote from Larry’s book: “Dividends are not a factor.” Larry pulls no punches, saying, “there is literally no logical reason for anyone to have a preference for dividends…” He believes investors over overpaying for dividend stocks today. He thinks it’s unfortunate the Fed has pushed investors to search for yield, inadvertently taking on far more risk. Dividend stocks are not alternatives to safe income. There’s plenty more on this topic you’ll want to hear. Eventually the conversation drifts back toward market values. Larry tell us that when the PE ratio of the S&P has been around its average of 16, it has about a 7% expected return. So now that the CAPE is roughly 25, and the expected real return is around 4%, some people are shouting “Sell! Huge crash coming!” Larry disagrees and tells us why. But the guys just can’t leave dividends alone. They swing back toward the topic, with Larry telling us the whole concept of investors focusing on dividends literally makes no sense. If you want a dividend, create your own by selling the commensurate number of shares. There’s far more in this episode that you don’t want to miss: the correlation of value and momentum… trading costs… the use of CDs in your fixed income allocation… corporate bonds and an eroding risk premium… the state of the ETF industry 10 years from now… There’s even a warning – if a former Miss America is pitching you a mutual fund, beware… In what weird context does that advice apply? Find out in Episode 28. Learn more about your ad choices. Visit megaphone.fm/adchoices
Nov 2, 2016 · 55 min
Porter Stansberry - "There's Going to Be a Big Bill of Bad Debt to Pay" | #27
Episode 27 starts with a quick note from Meb. It’s a week of freebies! Why? Meb is celebrating his 10th “blogiversary.” (He’s officially been writing about finance now for a decade.) Be sure to hear what he’s giving away for free. But soon...
Oct 26, 2016 · 52 min
Jeremy Schwartz - "You Should Be Hedged a Lot More Than You Are" | #26
If you’re ready to dive straight into the deep end, Episode 26 is for you. The guys waste no time, starting off with complicated topic of currencies. Jeremy takes issue with the currency-stance belonging to some former, unnamed Meb Faber Show...
Oct 19, 2016 · 1 hr 2 min
Listener Q&A Episode | #25
We have some great guests lined up in the coming weeks, so we figured we’d squeeze in another Q&A episode. This week, Meb is back from traveling yet again, this time to The Caymans. The show starts with Meb giving us highlights from the trip, as...
Oct 12, 2016 · 22 min
Learning to Love Investment Bubbles | #24
Episode 24 brings us back to our most controversial episode format: the “solo Meb” show. Listeners seem to either love and loathe this style of show. If you fall into the “loathe” camp, it’s a short episode so the pain is limited. But...
Oct 5, 2016 · 53 min
Gregg Fisher - "Sometimes the Best Investment Strategy Isn't the Right Investment Strategy" | #23
If you’re a factor-investor, Episode 23 is for you. In fact, about 10 years ago, Gregg actually trademarked the term “multi-factor” in the use of mutual funds. Meb asks Greg which factors they use. It turns out “price-to-anything”...
Sep 28, 2016 · 1 hr
Listener Q&A Episode | #22
Episode #22 is another “Listener Q&A” episode. Meb has been traveling again, this time giving several speeches. So we start the episode with Meb giving us the highlights from his most recent talk in Vegas, in which he details four mistakes...
Sep 21, 2016 · 1 hr 4 min
Michael Covel - "We Can't Make a Prediction Worth a Damn" | #21
Episode 21 starts with a “thank you” to Michael, as it was his advice on starting a podcast that got “The Meb Faber Show” off the ground. But Michael and Meb quickly turn to Michael’s expertise, trend following. This is how Michael...
Sep 14, 2016 · 39 min
#20 - Listener Q&A Episode
Episode #20 is another “Listener Q&A” episode. Meb starts by telling us about his frustration after doing a guest panel on CNBC earlier in the morning. (Hint: questions about The Fed tend to annoy Meb…also, if you ever chat with him in...
Sep 9, 2016 · 51 min
Jonathan Clements - "If Money Can Buy Happiness, Then Why Doesn't It?" "Because People Don't Spend It Right." | #19
Episode 19 is a fun, unique episode, delving into the connection between “more money” and “more happiness.” Turns out, Jonathan has literally written the book on this complex relationship. Do you know what studies suggest is the “line in the...
Sep 7, 2016 · 1 hr 5 min
Rob Arnott - "People Need to Ratchet Down Their Return Expectations" | #18
Episode 18 is packed with value. It starts with Meb asking Rob to talk about market cap weighting and its drawbacks. Rob tells us that with market cap weighting, investors are choosing “popularity” as an investment criterion more so than...
Aug 31, 2016 · 1 hr
Michael Philbrick, Adam Butler, and Rodrigo Gordillo - It's About Risk Allocation, Not Capital Allocation | #17
Episode 17 starts with the guys from ReSolve discussing how they view asset allocation and top-down investing. They start with the global market portfolio which is the aggregate of what every investor in the world owns, yet interestingly, nearly no...
Aug 29, 2016 · 16 min
Special Announcement
Big news today! This isn't our usual podcast. Instead, Meb has an announcement for his listeners. It's only a few minutes long, so don't miss this one!
Aug 24, 2016 · 54 min
Listener Q&A Episode | #16
Episode #16 is another “Listener Q&A” episode. With Jeff asking follow-ups, here are a few of the questions Meb tackles: - Given low bond yields, what asset would you suggest holding in a...
Aug 19, 2016 · 44 min
The Trinity Portfolio | #15
Meb tries something new in Episode 15. In “audio book” style, he walks listeners through his latest research piece: The Trinity Portfolio. “Trinity” reflects the three pillars of this investing approach: globally-diversified...
Aug 17, 2016 · 56 min
Eric Crittenden - "It's Not Fear and Greed that Drives the Investment World; It's Envy" | #14
Episode 14 is easily one of our most interesting so far. While there’s great content about trend following, Eric and Meb also delve into the psychological side of investing. There’s a fascinating tension between what people say they want from...
Aug 12, 2016 · 49 min
Want Buffett’s Returns? Here’s How to Get Them | #13
Stock picking is hard—really hard. Fortunately, there’s a simple strategy you could begin following today to improve your success. It’s simple to implement, takes just minutes of your time, yet has the potential to vastly improve your investing...
Aug 10, 2016 · 38 min
Why “Shareholder Yield” Beats “Dividend Yield” | #12
If you’re a dividend investor, Episode 12 is for you. Yes, historical market data tells us that dividend stocks outperform the broad market. But that’s where too many investors stop. That same historical market data suggests we can improve our...
Aug 8, 2016 · 41 min
Sam Stovall – Sam’s Seven Rules of Wall Street: Crash-Tested Investment Strategies That Beat the Market | #11
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...

The Meb Faber Show - Better Investing

Tom McClellan - "Now Everybody Knows What the Outcome Is, They Can Get Back to Focusing on Real Things That Actually Matter” | #29

Larry Swedroe - "There is Literally No Logical Reason for Anyone to Have a Preference for Dividends" | #28

Porter Stansberry - "There's Going to Be a Big Bill of Bad Debt to Pay" | #27

Jeremy Schwartz - "You Should Be Hedged a Lot More Than You Are" | #26

Listener Q&A Episode | #25

Learning to Love Investment Bubbles | #24

Gregg Fisher - "Sometimes the Best Investment Strategy Isn't the Right Investment Strategy" | #23

Listener Q&A Episode | #22

Michael Covel - "We Can't Make a Prediction Worth a Damn" | #21

#20 - Listener Q&A Episode

Jonathan Clements - "If Money Can Buy Happiness, Then Why Doesn't It?" "Because People Don't Spend It Right." | #19

Rob Arnott - "People Need to Ratchet Down Their Return Expectations" | #18

Michael Philbrick, Adam Butler, and Rodrigo Gordillo - It's About Risk Allocation, Not Capital Allocation | #17

Special Announcement

Listener Q&A Episode | #16

The Trinity Portfolio | #15

Eric Crittenden - "It's Not Fear and Greed that Drives the Investment World; It's Envy" | #14

Want Buffett’s Returns? Here’s How to Get Them | #13

Why “Shareholder Yield” Beats “Dividend Yield” | #12

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