Meb Faber’: Investing In Private Businesses

Thoughts On Investing In Private Businesses by Meb Faber

Guest: Episode #10 has no guest, but is co-hosted by Meb’s co-worker, Jeff Remsburg.

Date: 8/1/16

Seth Klarman: Investors Can No Longer Rely On Mean Reversion

Volatility"For most of the last century," Seth Klarman noted in his second-quarter letter to Baupost's investors, "a reasonable approach to assessing a company's future prospects was to expect mean reversion." He went on to explain that fluctuations in business performance were largely cyclical, and investors could profit from this buying low and selling high. Also Read More


Run-Time: 45:58

Topics:  Episode #10 is our second “Listener Q&A” episode. This time, instead of spending the entire episode answering one question, Meb tackles many. Here’s a sample of a few of the topics you’ll hear him address:

  • How should young investors balance low expected returns (ZIRP, U.S. CAPE, etc) with the need to invest young/early?
  • How much should you allocate to your best idea or opportunity? You hear Charlie Munger talk about betting big on great opportunities. What is “big”?
  • I get the gist of your global asset allocation strategy, but I’m not an expert on it. Does my lack of knowledge make it dangerous for me to invest this way since I don’t fully understand it? (As opposed to Peter Lynch’s mindset of “buy what you know.”)
  • What does your (Meb’s) ideal portfolio look like right now?
  • I’ve stayed away from low volume/liquidity ETFs I would like to own because volume is basically non-existent. Is that fear unfounded?

There are many more questions and answers, which dovetail into different topics including Meb’s thoughts on investing in private businesses, as well as several new business ideas which Meb would love to see an entrepreneur tackle. What are they? Find out on Episode 10.

Episode Sponsor: TheIdeaFarm.com

Comments or suggestions? Email us [email protected]

To listen to Episode #10 on iTunes, click here

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To listen to Episode #10 on Google Play, click here

To stream Episode #10, click here

Links from the Episode:

 

Below is a list of conferences that are a good source of new ideas:

CrowdFund websites

Read the transcript here.

Meb Faber