Faber: Art of Diversifying in a High-Valuation Market
Join Ryan Nauman and special guest Meb Faber, co-founder and CIO at Cambria Investment Management, in this exciting episode of Zephyr’s Adjusted for Risk Podcast. They discuss the superb 15-year equity run, the notion of market inflection points, and strategies for future investments. Meb shares his journey from being a ski bum in Lake Tahoe to starting Cambria Investment Management in Los Angeles, which now holds over $3 billion in assets. They also dive deep into risks of lofty valuations, the importance of diversification, and practical strategies for reducing concentration risk. Furthermore, they explain the 351 exchange and how financial advisors can leverage it to help clients manage hefty capital gains taxes. Tune in for valuable insights on market cap weighted indices, equal weighted strategies, and an in-depth look at global investment opportunities.
Zephyr can help financial advisors create modern diversified portfolios. Learn more here.
Learn more about Cambria Investment Management here.
00:00 Welcome to Zephyr’s Adjusted for Risk Podcast
01:19 Introducing Meb Faber: From Ski Bum to Investment Guru
03:00 The Evolution of Cambria Investment Management
05:19 Diversification Lessons from Tahoe
06:43 The Current Market Landscape and Valuation Concerns
11:13 Strategies for Navigating Potential Market Slowdowns
14:55 The Risks and Rewards of Cap-Weighted Investments
22:00 The Secret to Outperforming the S&P 500
23:34 Equal Weighting Strategies and Their Benefits
26:35 Capital Gains Tax Strategies
27:55 The 351 Exchange Explained
36:00 How Financial Advisors Can Utilize the 351 Exchange
39:37 Resources and Final Thoughts