The Meb Faber Show - Better Investing
Business:Investing
In episode 138, we welcome Yariv Haim. Yariv begins with his backstory. He had been working for a family running marketing and business development. He was asked to get involved with the investment management needs of the family, and through a path of his own, had gained enough knowledge to crystallize an approach he now follows at Sparrows Capital.
Yariv discusses how he focused on evidence from impartial academic institutions and research, and refers to the strategies derived from them as evidence-based investing strategies. After doing his research, he saw an informational gap in the industry, and it still exists today.
Yariv then gets into 6 core principles 1) return is primarily a function of risk, 2) certain risks attract persistent premium, 3) Diversification works, 4) stock picking and market timing seldom add value, 5) remain invested across the full cycle, 6) costs matter (although it isn’t the only prism to evaluate investment opportunities).
Next, Meb asks about factors and smart beta. Yariv discusses his opinion that Wall Street is a marketing machine, and the term “smart beta,” while it sounds sexy, ends up becoming an umbrella for all things. When asked about factors and when it’s time to stop using them, Yariv responds by discussing resources available, and the importance of doing the homework, and not to invest until you fully understand what you are investing in. As far as favorite factors go, Yariv talked about not having one, and expanded by saying he sees factor timing as a problem. He recommends a blend of factors to clients, starting with the most diversified portfolio, and building tilts.
The conversation then shifts to a discussion of behavioral investing. Yariv talks about how investors are all human beings, human beings are filled with biases and emotions, and feelings of optimism and pessimism can affect the way we make decisions. He finishes his comment by saying he feels that for people who wish to invest on their own, that it is always helpful to have someone by your side who is potentially slightly less emotional about the way your portfolio behaves in the short term.
As the conversation winds down, Meb and Yariv get into socially responsible investing and environmental and social governance themes. Yariv believes it is a trend that nobody can ignore today. He discusses some research conclusions the efficiency of markets and how higher returns investors have earned on vice companies is compensated for the additional risk they bear for owning them. He makes the point that there is more to investing than purely outcome in the form of returns, and that if an investor’s ethical compass steers them in the SRI/ESG direction, it is sensible to invest that way.
The pair then conclude with how Yariv puts all of these ideas together to form investment portfolios.
This and more in episode 138.
Tiger Cub Rob Citrone on Milei's Argentina: A Bullish Outlook for Investors | #550
Rob Arnott on The Upside of Getting Dumped: Investing in Index Deletions | #549
Michael Mauboussin on Market Concentration, Capital Allocation & Attributes of Great Investors | #545
Inside the Mind Of A Successful Trend Follower: Doug Greenig | #548
Introducing The Best Investment Writing
Catastrophe Bond Crash Course: Man AHL's Tarek Abou Zeid & Andre Rzym | #547
Roger Mitchell on Investing in Sports Amid the Fourth Turning | #546
Steve Eisman’s Playbook for the AI & Infrastructure Boom | #544
BlackRock's Kate Moore - Don't Bet Against US Corporate Dynamism | #543
Ian Cassel on The Art of Microcap Investing: Identifying Hidden Gems | #542
Aaron Edelheit - Investing in Cannabis: The Next Great Investment Opportunity | #541
The Cambria Chesapeake Pure Trend ETF (MFUT) | Jerry Parker & Meb Faber
Financial Sleuthing: Herb Greenberg on Investigative Journalism in Finance | #539
UBS' Jason Draho - Another Roaring '20s for the US? | #538
RBC's Lori Calvasina on How to Invest in The Post-Pandemic Era | #537
Thiel Fellow Eva Shang - Litigation Finance Masterclass | #537
MEBISODE: The Bear Market in Diversification | #536
KraneShares' Brendan Ahern: Is China Investable? | #535
Michael Melissinos - Mastering the Art of Trend-Following | #534
Eric Crittenden & Jason Buck Explain Why Best Investors Follow the Trends | #533
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