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How to Survive Holiday Travel With the Kids
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Conclave Of Warriors Collection
Conclave Of Warriors Special Edition Collection. On December 1st & 2nd in Miami, Florida, there will be a powerful event with seven warrior minded, successful men called The Conclave Of Warriors. I was fortunate to interview all seven speakers & First Class Fathers and have put them all together in this Special Edition. You will be hearing from: Rafa Conde, Ray Cash Care, Bedros Keuilian, Brent Gleeson, Jay Dobyns, Jason Redman & Brad Lea. For information and tickets to the event please visit - https://www.conclaveofwarriors.com/webinar-registration-23506692 Become a supporter of this podcast: https://anchor.fm/alec-lace/support
First Class Fatherhood
Aired 2 months ago 24:52
Eddie Redmayne & Zoe Kravitz - 11/13/18
Welcome to the Bravo. Clubhouse for the podcast edition of watch. What happens live with me? Andy cohen. Hey, guys. It's fantastic beasts night. I have such a crush on Rodman. He's so charming his lips. Or so big and supple his eyes. He's here was oh Kravitz. I'm excited seeing there. The dumble door is closed. Its watch whatever's I would Zoe Kravitz and Eddie red main now. Andy Cohen Lebanon us on Tuesday night with two famous wizards who are going to put me under their spell while. I put them under the influence. They're good testing beasts the crimes of Grendel walled will magically operate in the theater near you this Friday as Lita l'estrange. My first guest is so incredible. It's borderline less. Strange. Wiz welcome Zoe grab. Working on ten side sand. It's nude scare. Himself. Eddie redman. I know it rolls off my tongue. Great to see you for C. You love having you both here face late. You're both. You're having whiskey. You're having vodka tonic. Okay. Good. Bye Kosova, Ivanka Tony. Okay. A lot of people. Make that mistake. Yes. It's bad mistake. If you're expecting uh, speaking of drinks over at the bar is a clubhouse regular who between her role in a star is born and her new Netflix show super drags. She might be having the best year out of all of us. And I'll remind you Eddie had a son in March. Shange? Steal all your scenes stars born. Oh, well, you know what? I'm just having to be in all the. You're so I was so proud. I was so proud and excited. Oh here. Let's get started. Eddie, Jennifer garner posted a photo earlier this year when she was filming a movie and everyone on the internet said, she looked just like you take a look. Does. Right. She does. Except she can grow facial hair. Oh, genuinely as I recently did a film. They try to make me grow facial hair. I tried for three weeks, and there was just one massive sort of. Shaved. Really dorrell. Zoe Annetta, you're here to answer your questions. Do you man scape? No. I guess you're like a smooth guy. Well, choir chess, interesting. All right. Issue questions. Although now that I know about his manscaping routinely have no. Before we get to those. Here's what three things I am of szeswith tonight. I unless you live under a rock. You are obsessed with Zoe's little HBO show. Big little lies. A real life. Here's what let's find out with never have. I ever lia- dish in. I'll listen to septic situation. So we if you've done that thing take a little sip of whiskey never ever pretended to see a friends movie when I really didn't see it at all. Okay. Never ever told a friend. Their performance was amazing. It was. Never ever faked an orgasm. Never a minute. This is whiskey. Careful. Okay. Never ever. Lied on my resume to get a job. Okay. Never ever pretended to be older than I was I'm drinking. I break. Wow. Never ever pretended that a friend. Look great when they didn't. We all need to. I should go home. Heavily face tuned to picture. I posted on social media. What do you consider heavily, right? Good question. Reasonable. Up to second even before. Starring in fence Aston beasts Eddie had already worked with some top notch co stars at the risk of sounding incredibly creepy. I trapped a slew of them in suitcases, Eddie, yo pick a suitcase and say one fed tastic thing that we might not know about each bring the suitcases out there. They pig a suitcase number six, my favorite number six is JK rolling. Is it Rowling a role? Rolling. Okay. Is. Jay fantastic of an extraordinary makeup artist. Wow. Very Halloween putty. And the she showed me a photo of herself this whole steady. Who did you get to do that? Okay. Pick another suitcase number two number two. It's guard. Joe? Extraordinary. Kariuki ex very good. Who knew okay, pick, another central number four is full. Listen Joan the greatest stunt actor. I've ever she's like. Wow. Strong human. You're giving us. Good info here. Okay. Pick another one. Hugh Jackman Hugh Jackman is when I went with him. He had to carry me literally my body weight through for about four days. So he's basically hero. Thank you very much. Here's what since two wizards here. And since the closest we've come on this show to someone whipping outta one. Does that time to white showed me as penis on the air? So it is time for you to me. Would you each take a one teach Zoe in me, a magical move with our once we stand for the we need to stand. Okay. Well, this is a new one in the the new film. Okay. Sorry mic. Freshest. Okay in which I try to find he blows his one. He do you know how to? I think. Joe? With all due particularly technique to. Okay, show us. You say the words apar- June. Okay. Pari then you have to you have to blow in spin. Okay. Show me. Okay. Okay. Joe? That's how straight guy blows. Five. I'm gonna keep this hold on. Can you guys do the sound effect? If I do a pari vicitim. Finally in their movies. So we possess a ton of magical powers. So. If I could use my powers of persuasion. Oh, the control rooms done with me. To get them to reveal details about themselves. Here's what it's time for outside the actor studio, I have some silly personal questions that I'll ask in a serious voice Zoe. What was the last text message? You sent I sent a topless picture myself to my fiance's. You. So how long ago was that like twenty minutes? Did you take it in the dressing? Yeah. Wow. Brin different countries right now. So you oh good. Okay. Well, now, I want to know the last text message use that what were you doing in your? Good question. One second pulse. Would it says it's my wife, and it says do not watch Ellen? I somehow ended up making out with a Trump. Which is true. That's so. A troll on television. Funny. Okay. The dick pic you said before. Okay. For both of you. If you had to go without world sex. We're cheese for the rest of your life. Which would you choose so cheats? Okay. Eddie tissues. Okay. That's easy. Okay. What was your first concert? So we. Probably my father. Yeah. I don't really I don't know. I've been to so many what about your city, Eric. That's good. Thank you for playing. Good. Leeann 'em said Eddie, I'm a big red main fan. Also, a big Bowie fan was wondering if you'd ever be interested in playing the late David Bowie and a bio pic you'd be Mosey. Oh, good. Yeah. What is that? Don't know enough David music. I know you know, how to pronounce. You know, how to pronounce properly which is Bali. Yeah. I mean. Freddie. Mercury. Katie f Winston Zoe since your dad introduce you to them when you were little what do you think about the Spice Girls, reuniting without posh? Oh, I didn't know that huge. Yeah. Major. Maybe you have no thoughts to like. Let's go to Mariana from Texas. Hey, mariana. What your question? We oughta news. How does the second season of big little lies compared to the first season? And how is Meryl by being with the cast behind the scenes? Okay. Well, I haven't seen it yet. But the scripts are awesome. Very very juicy Meryl. Streep is amazing. We have many dinners together drink lots of wine together, she drinks martinis like a boss. Yeah. I think it's going to be great. That's great. Let's go to Mark from Cincinnati. Hey, Mark what your question? Eddie love the show. Thanks, buddy. Yeah. Next time Cincinnati. You gotta hit up the marks. I got a question for Eddie since she played rugby with Prince William have you spoken with him. And were you invited the prince Harry's wedding creek to the second one? No, I wasn't. Fine. I did play rugby Prince William I'm playing Prince William I was focus orphan book. It's basically any school. You played all they wanted to tackle Prince William, and they could say, I tackle Princeton. If you're studying mixed. It was quite easy. Did you were you invited to Eugene's wedding? Oh. Amy. I know because I was in London that seem very easy to get into. I mean, I'm not throwing I mean, I guess. That's to Margo from San Diego. Hey, mario. What you think that that? Hi, andy. Liliane warned you that she was going to write about the tube. You kissing in her autobiography and how did that come about who's lily Allen? I guess generation. I guess she. I guess she didn't more new you. Don't oh. Right. Okay. So if by kissing she means like attacking then. Yeah. She gets me. Oh, she. Attacked me. So if it is that how she portrayed it in the book. No it was portrayed else. Like like, I wanted it. Oh, wow. Okay. So you weren't thrilled. Did you read the book? I don't think anybody read the book. Say. Let's go to Betsy from Arizona, man. I love so e. Yeah. What's your question? Micr microbes actually for both. I wonder what was the most intimidating or mesmerizing thing about working with BJ rallying on a project. These she seems just like one of the most fascinating people that you could meet as she's awesome. She's so kind and kill actually I think when I met her for the first time was at the table read. And I was like hi, and she's just she's going to the bathroom. She just likes. Hello. I love is. Even though he's extrordinary writer is the first time that she's written screenplays for the photography's films. She comes in, and she's written these scripts and she just kind of she kind of allows us the freedom to play with. Yeah. So it's going to be five films total in theory in theory joy. Wow. Eddie Riano wants to know what Jamie dorms Jort Dornan's most annoying habit. Is you guys were roommates for you were famous. Yes. So. His most annoying. How is the like he's just ripped despite? Despite taking any exercise like he can just no excise thing. And let's begin with you like, he pretends to hate the gym and everything. The gym. And then let's see. And in that way. That's yes. And that note it's game time every day. And dish in of empty chairs at empty tables in Les Miserables, I was so moved. And apparently so were a lot of other celebrities who are now all tripping each other tripping over each other to take a seat next to Eddie. So let's play empty chairs at any stable. Eddie take these Ramona is and head on over to the Greenspan. Face right here and his various celebrities. Take a seat at Eddie's table. You will have to describe them to get him to guess listening Desi right there if he got six right in forty five seconds you both way to describe these stars. And go. English actor Dame, Mike Smith. Yes. Queen blink Mary J Jasey Bill say. Oh, right. Oh, right. Over. Oh, come on. You got any weed. It'd be a lot cooler review did Dallas buyers club. Oh, yes. Matthew, mcconaughey? The one Spice Girl, not returning unfortunate toria. Unfortunately won't that wearing a mega hat rapper wary to Kim Kardashian. Oh, yeah. I love it. You don't know this right now. Just north west anyway. Can I just wait out that he needed to the the name of the candy? If I'm Eddie, Greg de emailed what American food or trend makes you completely baffled. Oh. What American friend makes all just words like the whole aubergine eggplant thing this Akini rights, Cory M? The what's it called? What do you call on us? So much sounds like a sort of alcohol. Yes, Wendy onset said do you need some Neo sporran? You went off for like an hour. Zoe KCPT. Did you admitted last time on watch? What happens live to hanging out with Drake on a scale of one to ten. How good is Drake. Add hanging out. Who's that? Casey p by Casey. Is really funny. Okay. It's time for my mazal today. And since today is world kindness day. I thought we could all go around and say something nice about each other. Okay. I think that's a nice way to do it. So I'm going to say something about you. You'll say something about Eddie. And then he'll say something about me. And so fun. The thing that I would like to say about you is I love how completely open and honest, you are and you're you have. But yet you're totally positive and confident and it comes down to your energy, which I absolutely love five grade. Well. Okay. Told that grovel. Many. You are one of the most genuinely caring people ever met in my life. When I to to the point where when I was dishing for this before we were even working together you came into my trailer. And he sat with me and you worked on the scene with me. And you really wanted me to do. Well. And now whenever I come to you with the problem or something you really take the time to listen and give me advice. So thank you for being such a bit. Mazing in the movie. Yes. I love. Yes. Some of like has creatures in this foam. I just love your relationship with your dog does bright, my heart. And I just wish hit today. I love as replacement by. I think it says a lot about you. Thank you. Day actually worked out really. Well, we're all leaving feeling really good. And then the spirit of world kindness. No, Jack hall that I don't wanna think so. Fantastic pizza crimes of Grendel while that's theaters on Friday buying the bar from Superdrug season. One is on Netflix. Now Andrew Paul's drag race Hala sleighs spectacular premiering, December seventh on VH one Shangila. How much of a shock hasn't been for you. The response to stars more and people recognizing you now as part of it. Well to work with lady Gaga, Bradley Cooper. I like oh honolu-. They're fantastic. And it'd be a part of a film. That's so big around the world. You know, it's part of a film when a good when you like. Oh, yes. Let's go to marry from Chicago hit Mary what your question. Andy, I love you of you back. I tell you view, default and q. But my question is for Eddie. What was the most touching moment, Stephen hawking memorial? And what was your favorite thing? You weren't from him from the theory of everything. The most touching thing from Stevens memorial was all of his these extraordinary friends from all around the world who had come who. All the most familiar minds of generation like paying home. It's to him and his family. I actually felt fifty Jones, and I felt incredibly privileged to be invited. The thing that I learned the most from him is to keep looking up. Wow. That day and age when we went into a phones down. I love that is good. Let's go to kitty from California, Kim what your question. Looking. Hi, andy. I. Hi, eddie. Hi, I'm my question. My questions though, e okay? What would your mom reaction when you recreated? Her conic nude Rolling Stone photo, she she loved it. I bet. Yeah. She loved it. I think you know, seeing it side by side. It's just beautiful to see how similar we are. And how different we are. And all of that. And it was wonderful to pay much to her very nice. Let's go to their from Louisiana. Oh my gosh. I cannot believe I'm talking to Andy Cohen. Thanks, heather. Huge fan. Hi, eddie. Hi. Hi, heather. Okay. So my question is for both Eddie end Zoe k what's the craziest experience you've had with a Potter fan. Far. Craziest fan experience with with Harry Potter fans. I've had only wonderful experiences. So far. I mean, mostly it's been we went to Comecon, and we just went to Harry Potter world. The other day was so fun surprise the guys in the Puerta. Whoa. Yeah. It's so cold. And it was just so cool. We surprised people who were dressed up as the characters. I don't think you did. But I rode rides because one juicing right? Everyone was just busy chucking up. Why did it was fine? So I've I've only had great experiences. I I just I do it's the fun like, let's it cooled fund stories. Yes. So. Picture. Also, just the pictures the paintings. But generally like the most supportive troupe of humans. Let's last call the night. Also from Heather, Heather from Illinois. Hey, Heather what your question. Same heather. Hi, atty. Defense nerve-racking pert of getting your e e award from the Queen was the most nerve racking. Yes. Can I tell you? So when you go to Windsor Castle, and you cue up alongside some of these extraordinary people who've genuinely dumb pretty things, and you're an actor. Ian, say said he had a bit of a schmuck you cue up. And then you go through a door to meet the Queen. And in that room is this huge assembly room of people. It's a Royal palatial and there's a string quartet playing music and just about to go in. You know, you think it's classical music myself hut them playing co play. Done. I think it was when you rule the world. That'd be the world. That was the kind of most krinos I hear the Queen is surprisingly short. She's so cool. Yeah. Yeah. Like small. Being small small. I was pretty. Yeah. I wanna take Zoe an Eddie. More. Dot com. Thanks for listening to the podcast everybody. Hope you enjoyed the show. Remember, new episodes? Go live Monday through Friday at four PM eastern time. Make sure you're subscribed. Have a great rest of your night.
Watch What Happens Live with Andy Cohen
Aired 5 d ago 59:38
#138 - Yariv Haim - You Should Never Try To Reassess Your Risk Appetite When Markets Crash
Welcome to the med favor. Show where the focus is on helping you grow and preserve your wealth. Join us as we discussed the craft of investing and uncover new and profitable ideas. All to help you grow wealthier and wiser better investing starts here. Favors the co founder and chief investment officer at Cambria investment management. Did it industry regulations? He will not discuss any of cameras funds on this podcast. All opinions expressed by podcasts. Participants are solely their own opinions and do not reflect the opinion of Cambria investment management or its affiliates. For more information, visit Cambria investments dot com. Welcome podcast listeners. We're kicking off twenty nineteen. It is January tenth today. We have an excellent show for you. Our guest has over a decade of experience in managing strategic investments risk management asset allocation shouldn't a number of thought pieces on evidence based investing which will talk about today. Also factor in base, investing socially, responsible investing. He's the founder key, exotic investment managers sparrows capital. Welcome to the show you reap hyme. Thank you very much. And thank you for the introduction. You re joining us from London one of my favorite places, and you're eve. I think it's great. I know little bit of back about your background and origin story. But but I think it's particularly interesting because you didn't necessarily start out in asset management. So I'd love to hear a little bit. How how you got to starting sparrows capital? And what led you to it? Well, I originally came from as you specify and rightly so from very different background is due in a line of business Jerusalem-based in Israel, and I did marketing and business development positions with them. And then in two thousand six seven they actually offered me to step aside from what I was doing and tryin assist them with what can affect the cold their wealth management. So into the space where I had no prior knowledge. It was an exciting year. I had done a lot of studies. Redman. Any interesting books research this, and I essentially crystallized and approach that we have adopted and followed ever since before the global financial crisis through the crisis in ever since the outcome of that work has basically stemmed what is today sparrows capital, which is kind of wealth management teak wealth management business in London. And so the funny thing about in a learning about investing, and we always tell people, it's a it's a lifetime endeavor. But you have a lot of people that get educated from kind of university or text books, and there's a there's a traditional curriculum that is taught, and then you have other people that are sort of learned from the streets taught themselves and others that did what you did. Which is interesting almost like a sabbatical or didn't come from the field and says, you know, what I'm gonna soak up. Learn. As much about this as possible woes the process, you know, how did you even begin to find your everyone's got a personality and a in a market approach, the gravitate towards buffet famously says, you know, I I was inoculated with ValuJet early. I mean, how how how did you kinda find an settle upon your approach as you said very personal and everyone needs to find its own way. Wait is own way. I would say this. You're absolutely right in pointing out that different directions or different routes may lead to very different outcomes. I chose to focus primarily on the evidence that comes from impartial academic institutions and their full I ended up following what I referred to as evidenced based investing strategies other people into prefer to go down the route of simply practicing subject, and they may end up in very different positions in. I'm sure that their journey may be just as exciting as mine was I would say this book what I have articulated in do the family. I worked with off the doing a an extensive research is that there isn't exactly that. There is an inflammation gap in the industry. Today. And if you read the evidence that comes from academics and research, and you know, impartial betas. And you look at what's another of the practitioners telling you in their sales pitches in their marketing presentations, use said, it's immediately, and you dented by very quickly that there is a substantial gap between the promise of many practitioners in the actual evidence. That is being extensively research by economics. So talk me little bit about that. What are what are some of the key tenants and thinking about evidence base investing some of the conclusions? You know, you mentioned you mentioned it's an exciting process, particularly exciting when you started in two thousand six, you know, you got your feet to the fire pretty quickly with the financial crisis that rolled through after a year to talk a little bit about some of the ideas and concepts and your current thinking around the evidence-based investing topic. I think if you start with a bang canvas and just go and read all. All the reasons that has been written will over full five decades today. I mean, some of it is sodded stems from the officiant marketed publicist which was introduced in the mounting sixties. So you've got decades of research, and I think if you read them, and you look to crystallize that the principles that are kind of persistent throughout time you end up with or at least I ended up with about six of them. And they're quite intuitive. I would say make a lot of common sense. And I think that's a plus the first is that return is primary function of risk the to go intendant. So if you want to a seek higher if you want a higher essential returns, then you need to take higher wrists. There is no way to the fringe eight to the second thing is that certain risks attract assistant premium hero, specifically referred to an extensive research on by French, for example, the founders of of the mental, and you can see that if you look at for example, the equity markets certain risk. Attributed and Hans pretends, and when I say returns risk adjusted Redon's, so in essence that shopper ships just was an example one that is quite well familiar value. Stocks of stocks of funds tend to be underpriced compared to their book value value. Stocks tend over time to do better than growth stocks one of the earth. Individuals investors of that you mentioned Warren Buffett. He's a well known value investors, so many many years and decades today he has been bowling this approach. Trying to select values stocks that will out before say the general market, then the third principle, again, something we all hurdle is that versa. Gatien works, essentially, it's as close. As an investment can get to a free. Hunch. So by mixing different classes that behave differently under similar market conditions, for example, mixing equity with fixing the mix will perform in a better way than simply selecting one of the two classes. So that's the then the principle, which is potentially the most controversial one. I think is that stop thinking in pocket timing seldom act now, and I think this is quite counterintuitive and again talking about that information gap. This is where I think many practitioners defer from the evidence that comes from the academic quarrel because the many asset managers it is about promoting their skills to select. Stocks it Jake between companies who will do good Opeta in the future competitors. Who were not do as good all alternatively to time markets, and it seems Cording to all the research that has been conducted that both of these promises the boss jury of them do not materialize. They simply do not in it's much better. An investor to hold broad bibles applied indexes index funds. ETF's they is to a handsomely to an asset manager who will try to pick bet stocks all will try to overweight or underweight certain markets at certain times, according to renewable view he may have over the. World oil or whatever it is. Then the next principle is that you need to remain invested across the full cycle. And this touches a lot about our behavioral biases we have. We do not like to see losses, which we just don't like it. We must prefer to see our full ios grow. Ten fifteen twenty percent. Every year to see a loss of ten percent per. That's natural. Nobody likes to see losses. However because it is impossible over improbable two-time markets one needs to be very disciplined in overcome these biases. So if you defined a court folio that meets your risk parameters, and you set it on track and said now, I'm simply gonna letting harvest whatever market returns will will be the need to be disciplined about it. You should be never trying to reassess your risk appetite win markets crush. It is probably the worst thing one can have to reassess his risk again when markets crash week old one to get out of the market. But we will never know what to put the money back into the Mark. It is that simple. Will never know when the market's Buchan. So the best outcome can be achieved by simply sticking to your guns. You can rebound sport folios in a systematic fashion. It's actually advisable, but you should not change your approach because of market conditions. Now, the last thing I would say again, it's not a controversial statement coasts meta. The higher the coasts the mole one needs to deliver to copensates for the Coastal Sharks? So in order to simply below what markets generous offer over time. One should probably be best positioned by holding low cost instruments. It does not to say that the only prison one should look through is the prison of coast. The other matters important matters you need to take care of when you select your investment instruments, just as an example tax one needs to be tax efficient. Having said that the general rule is if two instruments offer you the same exposure than principally. There is no reason to pay more for what you can get this. All right. You got a lot unpack in there. And I agree with you on a lot of these things, you know, it's funny. We talk a lot about expenses and taxes on. On the show and say, it's not the sexy part. But probably some of the most alpha people can generate is is on those two areas. But nobody wants to talk about those. They wanna talk about his Google goodbye. Is Brexit going to happen? What's Donald Trump doing? I'm gonna start at the beginning. And then kinda hit you on a few different questions. You know, you talk about kind of some concepts value in factor. Investing and one of the challenges. We all have is Wall Street is a marketing machine. So Wall Street can come up with the million different ways to come up with an idea and spin it and usually as an excuse to charge higher fees, by the way, not always. But you know, there's a topic where he wrote about a white paper few years ago talking about smart beta, and you know, you talked about it as as being somewhat little more than empty marketing. Shell news by product providers to push merchandise while it's can be argued that smart beta Simpson factor investing in the motivation of sell rule. Baseboard Foy is that go way beyond the scope of a limited number of factors expanded and evolved with the concept of smart beta what sort of your evidence. Based approach as you think about factor investing in we, you know, there's the famous French femme factors. But now Wall Street has I don't know dozens hundreds probably thousands of this point which are thinking here on kinda on how you look at factors. And also, you feel free to expand on the smart beta idea, I still feel the same way I felt when I wrote lit, and I think if appointing the lead. I mean, it is as as you rotely said it is a marketing machine and the concept of smart beta sounds much sexier than the concert of rule based or evidence based passive investing. It just sounds great. What's not to like about being smart? Nobody wants to be on the other camp. Right. But the problem with smart beta is that it can pretty much become an umbrella to just about anything. And as you pointed sometimes on certain occasions, it may just be a kind of a Rapa. The just the fall is extracting higher fees and for that. I would argue that good advice is still in high demand. And when you look at the market today. I mean, let's just take the let's assume for the time being that investor says, well, you know. I'm happy with allocating portion of my portfolio and simply hold the broad American market. And let us assume for the time being that he identified. Yes. And five hundred. As a good Representative of the American market, the stock market the equity mining into days world, if you go and you search for an investment vehicle that tracks the NBA one hundred you will find dozens of them. Different replication strategies, different costs different tracking errors and obviously different not assets on the management. So how do you pick one in? How do you know you pick the right one in to get back to your question? If I am being mo- selective in wanted. Choose factor a risk factor a genuine risk factor. How do I make sure that it is indeed a robust one? And again that there's a difference between smartly till in what I would call evidence based evidence based strategy will only follow one that has been robustly proven by the academic world. And by that I mean, it has been tested over times. And it has be tested over geographies. And the all was well, but primarily these two so it's not a phenomenon that you have identified. Somewhere in a country somewhere in the world, which cannot be proven elsewhere. And it is not something that you simply sat and data mind the debates, and you found something that has worked over five years, but has not worked for much much longer than that. And they say's, unfortunately, on certain cases, some things. Principles that are not meant when marketeers go out and market. What is referred to as Mark instruments? Let me give you a very simple example if you weren't too thick a rule. Okay. Any ru you can say I actually like. Listed companies companies will just gone through an ideal. Now, you can very easily. Screen companies who have been IPO d- on the stock market in the last x weeks, and then you can build the rule that says, let's hold them fall. Months, whatever the rulemaking this place ropes, and you can simply follow that rule and very easy. Follow that rule. But the question is does the rule make sense doing this this or shooting vest is expect better outcome by sticking to this role? Unfortunately, the academic world has found in point out that unity this company's up. Probably weren't of the not so great strategies for investors. They cheap foam relatively poorly against who have been on the stock market for many, many years and out various reasons, but if these funds who go through the machine system process, if they are height if in this one to bind to the on just like you said before, you know, can I get the Facebook. Can I get the Neo Google? Can I get the next whatever apple? When there is a d-mont from investors, even if it is an irrational Emam is always gonna be someone in the market will provide the sublime. The smart Beato, bro. Unfortunately allowed to sell it. For as an attractive proposition. I would argue that it is not. Well, there's always the challenge to of we as allocators and investors, you know, the results play out over such long horizons in it's easy on the marketing side to be able to come up with almost any back test or shorter term horizon performance that looks beautiful talk to me a little bit about the challenge there. So you mention, you know, looking at a factor that works in overtime, and in in most if not all geographies, and hopefully, it has some sort of intellectually rigorous premise or basis white works. You know, we like to say we wanna be able to explain a lot of the ideas to, you know, someone needs her nephew or child who's kind of high school college age, but talk to me a little bit about the opposite. And this is this isn't a softball question. This is a hard question that I think a lot of people. There's no real easy. Answers to me. How do you think about kind of the flip side of the inside of the evidence base which is thinking about a factor or an approach that may become less effective over time. Or how do you think about a factor that you know, is is there a process for thinking about it? When it's time to toss it where say, maybe it just doesn't work anymore for various reasons any any thoughts there. I think it is challenging one. And I think one needs to do proper work on that I already mentioned on fringe. And I think some of their faces are must read, but let me try and help pointing to the source of information, which is that the interest in Marsh database and annual era Bill they publish on annual basis. I let me just say this is closer first of all on himself is a consultant to all board at sparrows capital. But other than. That both in March. Dissolve of been doing a tremendous work in sorting out. All this information and analyzing it from judge business school in Cambridge. And they and they publish a yearbook which is sponsored by Credit Suisse, and I would strongly recommend people to read it. And they go and revisit all the the fact is that they have been discussing for many many years, and they go back, and they show the evidence across geographies across times, they make sure that all of the information is persistent and consistent, and I think they probably have the most comprehensive database that one can have today in the investment space. So there is unfortunately, no shortcut here, you need to do your homework you need to look at the and you need to read you need to educate yourself. But I will say oh, just say this to to into my point on on this matter as. All of them, I advise anyone not to start investing in anything until he understands what he's investing into. If you're still in the process of learning do not feel that you are any under kind of egency to move quickly. Because again, this is just if somebody urges you that you need to do something today rather than wait for tomorrow. Then it's it's probably more of a sales pitch than a robust strategy for longtime. Best is that's that's one of the best pieces of advice. I think out there on investing is is so many people feel this pressure or it's almost like it gets into the game of you know, like the deal and the excitement of right now have to do it right now. And, you know, the the concept of, you know, this is your life savings or you're working on this isn't a game. And if you have to make the. Now that would be any different next month. That's it's really it's really probably the wrong idea. Gundy, your head if I had to press you for it. And you don't have to answer this you don't want. But do you have a favorite, and that's not really a good question. Ask evidence base investor. But personally, do you have a favorite factor? Is there one that stands out? You're like, you know, what this is just my this is my pet factor. I like this one. Unfortunately, the problem with doctors is that sometimes people try in time. So, you know, they they will take a position that will say the next five years, I think, you know, value. Stocks who underperformed over the last five years, they're probably going out perform the next five years. And then they take a position again trying to time the market is extremely difficult in timing factors is not an easier task. So what I normally do in full are climbs the advice. Is them simply to build the end. Of factors. Do not take a single position on one factor that may or may not you know out the phone in the foreseeable future. Simply Bill the mix start with the most diversified portfolio. And then they'll tell towards factors in that way. Again, be assistant be consistent be this. That's it. This is no one secret souls one, you know, Greek ingredient that will ensure your success you need to make diversification as as we pointed up. Yeah, it's hard. You know, I think a lot of people the seduction of wanting to time factors is very attractive and people again, the challenge is think in terms of weeks months quarters, even years, we had an investor ask us about one of our funds the other day that said, hey, I see your fun. Did this today at that said today? Like man, you got a year even years can be misleading and even decades. I I joke now that I said I used to think a decade was a reasonable time to to look at evaluating strategy. I think I think now I probably say it's probably to probably twenty years at this point. So no, easy answers. All right. Why I want to touch on a few other topics because we only have you for an hour. One additional thing on that, you know, unfortunately, long term investing. So investing long-term is probably one of the most boring things wanted to. It's just exciting. You know, Warren Buffett goes out and still tells everybody, you know, if your long term investor issue just by beef hundred in hold onto it. That's it. But then again, you know, that's boring. What do I have to tell my friends at the goal? That I bought the three hundred. People. It's it's the behavioral bias again, it kicks in, you know, it's inevitable to be honest. We want to have some excitement and by the way our approach at sparrows Cup. It was always being a mix of a bit of both. You know, you need to keep your coal or folio sip simple. High efficiency tracking the markets. But they were wrong that if one wants to build a bit of excitement he can do that he can do that to satisfy other objectives. Not just entrance. Okay. There's a lot in here on unpack as well. I just thought about this as we're talking might be kind of a fun idea said it is a way to kind of probably give investors excitement. I think in advisors that use something I guess in P I feel like you should write like a quarterly. Yearly letter and say this is what we own the SP five hundred. However, look at some of the stocks, we own the did amazing in that index this year, we had XYZ that went up two hundred percent and another one is Garrett you own these should be happy. You now go tell people at the golf or football club that you owned the stock because you're guaranteed Donut. If you on the market cap waiting to maybe maybe that'll that that'll serve that concept. I doubt it. But anyway, all right. The two other concept you talked about let's talk about behavioral a little bit. You know as someone who started right before the financial crisis who talks about. It's you know, it's easy to say we're on emotional. But as you've, you know, worked with a family, and I don't know the answer this. But, but maybe talk a little bit about some of the types clients serve if you do individuals as well institutions what what are these Inc or some of the most dangerous biases that people have in this, by the way, longtime listeners know that one of the reasons I became a Quant and rose based investor is I have all of them. I've got all I'll take as much risk as you. Give me I'm over confident everything else. What are some of the ones you think are the most challenging detriments the people have as far as the the biases. Well, I would say probably that first of all I'm learned anything in fifteen years. You know, practising practising this industry is that investors our own beings. Human beings are filled when biases emotional emotions, we all like to think that we're very logical. I have never sat across the person who told me, you know, we like to behave irrationally. Not even once they all appear believe generally believe that what they do is logical. And it is the best one can do for their own having said that when they're reality presented so in the reality is always surprising. Oh, it's I, you know, every year, you know, we sit here it's generate two thousand nineteen you go out, and you people what do you think of the year ahead and everybody are telling you it's going to be a very challenging year for the loss fifty years. I did not see that was not challenging. So there are different challenges of goals. But you know, the world is buzzing things are happening in every year is challenging here in the problem is that we have many biases that Titus into the events that occur today. So, you know, I'm sitting here in London and in less than three months, what have Brexit? For the last two and a half years people asking what is Brexit? What is the outcome over Overton? And I'm sitting here today, and I still you I do not know. People still speculate. Is gonna be a harbor is gonna be assault debris exhibit doesn't mean. A or does. It mean beat the truth. Is it? Nobody knows nobody has a crystal ball. So what can we do as this? Just saying to people relax do not change. The course this is good advice. That is one rare into. I personally believe is it advice with painful because we susceptive to biases. If I am today. Feeling worried about Brexit the fear creeps in. And if I am fearful I will make decisions oenological irrational because the subjected to the fear, but I feel. Similarly, if I have very hosited focused view on Brexit, if I think it's the best thing that will ever happen to Europe to Britain to both parties into the world. They this. Feeling of optimism also affects the way I make decisions today. So when people tell me, you know, maybe the best strategy is to simply be my own adviser. I often tell them. It's always helpful to have somebody who is sitting by your son who is potentially slightly less emotion. About you know, the way the portfolio behaves in short term will keep reminding you why it is you what you do. Because at the end of the day. Saying you are a long term investor means little. What defines you is how you act. If you act like shorten investors, even if you could Vince yourself that your long-term invested your outcome will not be as good as those actually act as on investors in many times longtime investing delivers better returns because of. Unfortunately, those who acted. In different ways on the different market conditions. You know, we talk a lot about this. Where people always say that they have long-term perspective. And then in reality they doll, and I often think and brainstorm, and I don't have any answers about this yet. We talk a lot about how I'd love to come up with a fun structure concept that essentially the locks people down for ten twenty thirty forty fifty years. And then the problem is the structure that does it here in the US, which is the probably the annuity or nudity concept is doesn't check the box of one ears in my criteria, which is usually super expensive, you know. And so maybe maybe that's a twenty nineteen project for me is try to figure out a way to to lock up some some some sort of these. So that it aligns with people's real time frame. It's tough. I think it's really hard for people so listeners have you getting good ideas, Email me love to hear because I feel like the most of my good ideas, come up in this area of I end up getting would probably get sued. But education is a big one trying to convince p. People that to stay out of their way, you know, that there's a lot of behavioral nudges that some of the software companies are developing, I know betterment the robo here in the US has a has a feature where if you try to change your allocation or do something it'll pop up box and say, that's fine. If you do this. But f y you're going to generate five thousand dollars in taxes and everyone hates taxes. So that's a particularly good one in they say that it's a it's a been a good nudge to get people from not doing stupid stuff. So the behavioral side, but but but one of the best behavioral sides as what you mentioned is having fiduciary that acts is the Chinese wall in between you and pay you and your money. We often say that the biggest benefit of a financial advisor often is not investment is reprocessed. But keeping you from doing dumb things. So I wanna talk about one or two more topics that that I know our interest. You one is in area. We haven't talked a lot. What about which is socially responsible investing? And I know a lot of our investors have pretty big interest in this area. Maybe talk a little bit about how you guys think about ES g in everything that's kind of wrapped around in how you implement it in your portfolio is if you do so. All I think it's it's a kind of a trend that no one can ignore today. And there's a lot of people arguing that because you know, the liens are stepping in and maybe other reasons as well global warming, and such, but there is no argument that the whole responsible investing theme is growing, and it has grown especially say in the last ten years now when I look at the at this relatively medium space when again needs to start with collecting data. And if I may I will out that again, what are the very first research. They about this concept of s awry, or is g was published again by Martin dessert. And they actually show something quite interesting with they look at loss hundred or so years. The industries that outperformed other industries were actually let me call the vice industries that do best industries over the lost under there. So years, we're alcohol. Very little argument about the Bockel. On both being kind of nickel advice industry. So. First thing one meets knowledge is that actually these companies? Responsible companies say more ethical. Now, let me say the one that does not mean that this train will continue the next one hundred years again future is unknown. Future is unknown. The interesting question is wine. And I think the researches actually said something makes sense when you invest in vice companies you bear as an investor and there's no risk. Because of the underlying business tobacco companies as an example, an investor should expect mole legal wrists. Social wrists. So in a way researches concluded is that are again, quite efficient. If this in companies who have Morris then open time, you will be sated foot taking that risk. So with close outcome or the first conclusion, I draw from very little which we have so far is that one needs to be careful with of lettuce think all will be responsible because surely they will perform the irresponsible company. Again. Hitch in getting promise that eventually will be hard to deliver in if you create build their own expectations. Then again investors may end up disappointed. So once. It's an chilly vice companies who have done very well in the possibly. Is that being we need to investing in companies? Well, the answer is always. I am not. Who will argue was the Jetstar clients, but they should invest in such games. However, there is more to investing than purely outcome in the form of returns. If an invest understands that by de-selected by filtering out certain companies, he may give up on a Seddon potential return, but his ethical compass direction in that direction. Then I feel that it is very sensible. To screen films. Who meet is restrictions. Whatever restrictions one may. So for example, if you are trust that collect donations in your purpose is to fight cancer. It is very unlikely that the people who donate money would want to see you put that money invested into tobacco companies. This was a simple example. So it it's very sensible full charities in sometimes even progress funds trusts to come with certain ethical restrictions. Ten years if you admit an investor who wanted to de-select certain sectors. You would have helped to directing to actively manage. Fortunately, for investors, the industry has evolved over the last ten years. In today. You can do a follow the same principles. By still adhering to evidence based high efficiency strategies. So you can find indexes today that foam the way to school companies that are traded, according to whatever ethical scale you mate. And then on that index you can Bill an instrument be that for any of the phone that tracks index, and you can do that for a relatively low coast. These are still somewhat cost year than the plain vanilla idiots, but they are still far less expensive than an actively managed instrument says, this is a area that almost everyone believes that there's a lot of promise and potential particularly lot of the younger generation and in how. What the correct or killer app for this is is far as screening out companies or excluding the more. Whether it be index ETF's the money hasn't quite yet. Flowed as much as people think, but I but everyone seems to be an agreement. This is as huge potential, myself included. I I'm not I'm not sure what it with killer product is yet, but somebody will figure it out. Hopefully, so we talked about a lot today factors evidence. Based investing behavioral social, I wanna hear a little bit about kind of on a high level. How do you put it all together? How do you think about versus nation? How do you think about asset allocation, how do you think about in the future, including new evidence based approaches or excavating them, how's the chef combine all the ingredients? So it's always important to start the beginning. And the beginning is always was always will be the investor beat. Be that private or it doesn't matter. The first thing one needs to understand in order to try and help investor is his risk profile because risk draws everything. And once you have understood not just you in his visor, but also the client himself, which is as important. I would argue once you understood together, what are the risk parameters. Then whatever the response is all one couldn't design a strategic location that will fit the risk profile. It is the best chance that in that. The investor will have to gain or do to reach his long-term goals. So what you have that strategic location identified than it is a matter of applying restrictions that will come with the exes. You need to be Bursa fide, you need to all the rules as you designed our oil, but it all stems from Rhys, if clients are more risk of us than risks should never be up just in order to achieve their you know, the objective. They had mind. Anything unfortunately in Kate, obscene some cases where people were backwards. The objective was to generate whatever five percent Brannon, then you know, you design portfolio opening to achieve that. But without insuring that the rest is fit though. Lo and behold, the first instance of crisis or down and invested sees low says that he cannot cope with he was prepared full. He just bails out strong. And that's probably one of the worst things one can do. So make sure you understand the risk correctly, the strategic asset allocation will folk quite naturally wants you understood the risk for him in from the strategic asset allocation, you move to indices you move to investment instruments, and you can as you. Go apply. The different criterias all the different restrictions that the investor chose to present be them ethical, be them currency related whatever it is everything stems from risk, man. You just brought up currency is at at almost the end of the podcast will have to bring it back on to talk about that one because that's an area that a lot of investors particularly interested at in currencies in general, but I feel like that's an entire another hour long top. Dick. So someone who's interested in going deep here. Wanna learn as much as possible on talk a little bit resources. What are some of the best places? You look to as far as learning more to research thinking about a lot of that topics involved today. I know you mentioned my favorite investing book triumph for the optimists and the subsequent global investment return yearbook, which are always free to download from Credit Suisse. And the the crew it and Marston will add links to those on the show notes. But what we're else do you look any particular resources, you think are helpful. Well, I would say generally speaking and very much depends on the area you wish to collect data. But Jerry speaking, I find that university of Chicago is a very good source for information. Not surprisingly a lot of the research from Brenston from that university. I think that again jet business school in Cambridge. Zayd business school in Oxford. Is another good source mind, you if you wanna look for research about an area, which is less studied so far or not as extensively studying. So the space of consultants in the industry, then I can recommend that have been written designed by a professor Tim jenkinson from the business school. So the good news that I have all people interested is that into days era, there is no hurdle. Full obtaining information. Like, you know. Let you know if you remember how the world used look twenty years ago, which is not far ago. It was very different today. We simply them to the network to the web push above cold, whatever Google, whatever engine surgeon us, and you have all the information available to. You'll finger challenge today is not located the challenge today is to do proper work. You know, the to crystallize information from all that data that is valuable and by meaningful information, inflammation, that can actually help you with designing the way you make decisions Bill or folios, etc. Etc. So as you sit at your perching, London, anything in particular. That's got you excited or you're interested in as we look out to twenty nineteen twenty twenty in topics that you're researching or do you think are to glee fruitful for study? I'm excited about everything. But I never heard where the excitement is gonna come from. So I am not I'm not running research facility. And I'm sure that there's gonna be a lot of debates and discussions and research acres on the back of what will unfold you're in two thousand nineteen. Where are the interesting areas? I. But I'm interested in pretty much anything. So I would just say keep an open mind don't be shy to be surprised every day. Something surprises me. It's it's all fun. It's not brag on performance. Yeah. I agree with you. I I'm I'm easily distracted. So I love going down rabbit holes on on reading when one of the better sites. That's sprung up in the last few years on the academic side. And in practitioner to a lot of institutional research is called savvy investor SR end as good job of having all the academic papers on it. The biggest challenge is just so so many of them, which is which is a struggle. I it's funny. I read so many investment outlooks for twenty nineteen seemed like they all said the same thing, which is funny because so many people that the right? Some of the invest outlooks, you know, it's a rules-based process for a lot of them. And then a lot of the macro charts are just there for I think color, but anyway, all right? So as we wind down here, let's say investors said all right? You're eve I like what you're talking about. I want to implement some of these evidence based solutions in my portfolio, any advice to them as they transition. From there sort of what we call mutual fund salad where people just have a portfolio, and they want to get to somewhere else in advice to people who are now re reevaluating their investment approach, particularly after twenty teen which was a year in which almost every investment Cline, which is pretty rare any thoughts, again, let me just stress this. I don't think people need to build stressed about it. If you want to reassess take your time do a proper process, I personally think that considering adding even ingredient in one portfolio, which tracks in evidence based approach makes a lot of sense. I will to make that case anyone. However. No need to lose sleep tonight. Because you might lose them something Tamar. Well, most invested should focus in along. And when you make a change because you have concluded after thorough work that you've done that change is required a needed that make in a way that suits you in a timeframe that suits you. And. You know, you can make changes gradually one does not to change his prodigy overnight from eight to be it's not a binary choice. I don't think investors today look at actively manage mutual funds and look at evidence base than ETS and say, I need to think when as ROY Bs, right? I think that was the case of you years ago when the when the traction seem to be kind of binary, you either believe in a or you believe in me. I think we don't from that. Now knowledge there is a way to combine both of the protas for the benefit of the vista. And I think this is crucial. Then you are not taking a choice year that excuse one area or space from your portfolio. You're up chilly diversifying. If anything you at least get more of spur diversification. Certain elements will be acted. Will be less acted question. We always ask investors on the podcast, you look back into your career in this can be personal or professional, but what's been your most memorable investment as it something. It can be positive. It can be negative anything that comes to mind as you look back over the years already pointed before art timing be worse. I mean, we quickly ran into financial crisis. And I will never forget the meeting we have early two thousand. I mean with hindsight one can say that was probably the bottom of the markets, and we looked at our folios which were tracking market in. We have experienced severe losses. The portfolios dropped about twenty percent. In more so involved that is a significant decline, and we were looking at other institutions and other investors and we saw. That that was blood on the streets speak. Everybody were nobody was sitting there. Happy about the the crush. And I very much remember saying that, you know, we just need to be very disciplined, and it will probably take years to recover. But if we keep the discipline. This is the strategy that maximizes our of thin to reach our objectives loan and then eight months later. By November of two thousand nine. We were back in positive territory. We recouped all the lessons that we made during the crush by simply stick to our guns rebalancing and not running for the hills. In was prudent moon. I sit there eight months ago saying it's going to take us tier two ears Drake of, but it just shows how I know in how bad my forecasting is. So this is a very in a way kind of hunting experience. You look at the markets, and you see how drastic they can move one way any other in house swiftly. They can move from you know, from complete collapse to a very quick rebound. And you just aknowledge that it's very difficult to try. And fight them or try to outsmart. So I was I was not doing anything made us that than our next going. We civically stuck our strategy, and that is the benefit of long term investing. If you have the right strategy, you go to stick with it through thick and thin, and you will hopefully get the the outcome that you are expecting in the boats. Funny, you know, that that the challenge for a lot of people the older folks on this podcast will remember two thousand two thousand nine very vividly two thousand thousand three and even some you know, the the bears before that and the younger crowd. You know, you often Chow younger investors and say I can I can handle ton of risk. I fully accept my portfolio will go down by fifty percent at some point or whatever the number is. 'cause my high risk tolerance. And. It's easy to relate that on paper or over a coffee until someone actually goes through it, you know, and we often tell people say your risk tolerance is one thing. But until you live until you live through it is another thing in usually people overestimate in one direction, not the other people people very rarely said. Oh, yeah. I could have taken on a lot more risk. I could've been happy losing eighty percent or whatever it may be. But, but that's that's comes with seasoning aging and everything else, you're either this has been a lot of fun. We'll have to have you back on post Brexit. So we we can see what the world looks like after that. But listeners by the way, I'm gonna be over in London Dublin in Europe in March so drop me line and say Hello where can people find more? If they wanna fall, you're you're writing your updates. What's going on in your world? What you're thinking about? Where's the best places? Well, those obviously would be a website. Dot com, and they can also my Linden profile Yari you. Hi. It's as simple as it gets today. So there's no problem getting in touch with me one way or the other great will add the links to both of those on the show notes and met favorite com forward slash podcast. You're eve extra taking the time to join today. Thank you. Listeners. It's been a lot of fun can find the show notes. We'll link to these affair dot com. Ports. I fought casting final the archives as well as the show on itunes, overcast, our new favorite breaker. Thanks for listening, friends and good investing.
The Meb Faber Show