My Worst Investment Ever Podcast
Business:Investing
BIO: Mike Philbrick is the CEO of ReSolve Asset Management. He has over 30 years of experience in investment management, serving in senior investment industry positions with several major financial services firms, and is responsible for investment decisions, coaching, and strategic leadership.
STORY: Mike learned of a mining stock at the urinal. He invested, and the stock performed well because the mining industry was on fire. And so encouraged by early success and massive ignorance, Mike wiped all of those gains in no time.
LEARNING: Don’t over-leverage. Understand what kind of investor you are. Ensure you have some protection before you go all-in in an investment.
“Just because you’re winning doesn’t mean you’re smart or you’re good at these things.”Mike Philbrick
Guest profile
Mike Philbrick is the Chief Executive Officer of ReSolve Asset Management. He has over 30 years of experience in investment management, serving in senior investment industry positions with several major financial services firms, and is responsible for investment decisions, coaching, and strategic leadership. He has co-authored the book Adaptive Asset Allocation: Dynamic Global Portfolios to Profit in Good Times – and Bad (Wiley), as well as several whitepapers and research focused on adding new insights to the quantitative global asset allocation space.
Adaptive Asset Allocation and Return Stacked Portfolio Solutions have been popularized by him and his team at ReSolve.
Preceding his investment career, Mike played professional football in the CFL, winning the Grey Cup Championship in 1999 and being inducted into the Hamilton Tiger-Cat Walk of Fame in 2015.
Worst investment everBack in the early 90s, there was a lot of mining going on in Canada, and so mining stocks were becoming popular. Mike had started noticing the stocks but had yet to invest. One day, he’s at a urinal, and a guy tells him about a particular mining stock. Mike figured it was a good idea to invest in the stock. He didn’t do any research; he just took the man’s word for it.
The stock wins, and Mike gets a couple more wins from the stock, not because he was a genius but because the mining industry was on fire. And so emboldened with early success and massive ignorance, Mike wiped all of those gains in no time.
Lessons learnedAlways remember that you don’t know as much as you think, so take different approaches such as diversifying, being less confident, managing risk with stop losses, or managing risk at the portfolio level on an ongoing basis. You don’t need to own more of what’s going well. Just do less of what’s dragging your portfolio from a momentum factor that enhances returns.
Mike’s recommendationsMike recommends his book Adaptive Asset Allocation: Dynamic Global Portfolios to Profit in Good Times – and Bad, which goes through steps that you would take to maximize diversification and how to use the factor of momentum to enhance that.
No.1 goal for the next 12 monthsMike’s number one goal for the next 12 months is to get his firm 1.5 billion dollars in assets under management.
Parting words“Stay true to yourself.”Mike Philbrick
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Connect with Mike Philbrick
Further reading mentioned
Dave Collum – What Should the US Be Doing in Ukraine?
Bill Blain – Always Sell Fast in a Difficult Market
Jeroen Blokland – Know the Actual Business Outlook Before Investing
ISMS 8: Larry Swedroe – Are You Overconfident in Your Skills?
Brian Feroldi – Be Careful When Trading Options
Matt LeBris – Prepare for the Downs During the Uptime
Pim van Vliet – Just Because It’s Cheap Doesn’t Mean You Have to Buy It
ISMS 7: Financials, Cons. Disc., and Utilities Sectors Look Most Interesting
Logan Nathan – Your Supplier Is an Extension of Your Business, Not an Outsider
Louis-Vincent Gave – Your Success Comes Down to Portfolio Sizing
Adam Rosen – Build to Sell From the Start
ISMS 6: UK Looks Most Interesting Among the Top 5 Stock Markets
Terri Spath – Always Know When to Buy and When to Fold
Brett Martin – Fix Your Partnership or Quit It
Damon Pistulka – Be Careful of Concentration Risk
ISMS 5: How Rising Rates and Oil Prices Are Contributing to 6.4% Inflation in the US
Pia Singh – Mistakes Are Inevitable, So Be Prepared
Raghav Kapoor – Be on High Alert When You’re Doing Well
ISMS 4: Bond Yields Are Showing the Fed Has Won Its Battle Against Inflation
Praveen Kumar Rajbhar – Don’t Fall in Love with Your Own Ideas
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