Episode 289 is a Mebisode. In this episode, you’ll hear Meb put today's stock valuations into historical perspective. He addresses the claim that stock valuations should be high because bond yields are low and then looks at what conditions were present at the start of the best ten-year stock returns in history. Finally, he provides some thoughts on what investors could do to handle the current market environment.
All of this and more in episode 289.
In episode 288, we welcome our guest, Doug Pugliese, the Head of 1042 QRP Solutions at Alpha Architect, where he manages the firm’s qualified replacement property investment strategies practice. In today’s episode, we’re covering Doug’s best idea: employee stock ownership plans.
ESOP’s are a niche but incredibly attractive way for a business owner to sell their business for both themselves and the long-term viability of the company. The episode starts with a broad overview and then dives into the inner workings of an ESOP sale. Doug explains how the tax benefits of a 1042 election allow the owner to defer capital gains tax and even invest the proceeds into a portfolio of blue chip stocks.
As the conversation winds down, Doug shares why ESOP’s may be an ideal way for middle market private equity companies to exit investments.
Please enjoy this special “Best Ideas” episode with Alpha Architect’s Doug Pugliese.
In episode 287, we welcome our guest, Jonathan Hsu, the co-founder and General Partner at Tribe Capital, a venture capital firm focused on using product and data science to engineer N-of-1 companies and investments.
In today’s episode we're talking about using a quantitative approach to venture capital investing in a way that hasn’t been done before. Jonathan us through his background, with stops at Facebook and Social Capital. Then we hear how Tribe Capital leverages their data science capabilities to assess the product-market fit of companies to invest from the seed stage to late stage. Jonathan explains how this process led him to invest in both Slack and Carta.
As we wind down, we learn about the firm’s co-invest vehicles, which allow others to access their deal flow.
All this and more in episode 287 with Tribe Capital’s Jonathan Hsu.
This episode is sponsored by Masterworks. Masterworks is opening the doors to top-tier, blue-chip art investments to everyone. Use Promo Code “MEB” to skip their 15,000 person wait list.
In episode 286, we welcome our guest, Jeremy Grantham, co-founder and Chief Investment Strategist of GMO.
In today’s episode, Jeremy begins by talking about the current market, which he believes will be recorded as one of the great bubbles of financial history. He puts this bubble into historical perspective by comparing it to the Japanese, technology and housing bubbles. Then he addresses the commonly cited argument that low interest rates justify high stock valuations. Next, Jeremy explains why he is so bullish on venture capital and has allocated almost 60% of his foundation to the asset class, making it, as he says, one of the most aggressive portfolios in the philanthropic world.
As we wind down, Jeremy explains why he is so passionate about addressing climate change through his foundation, and why China is ahead of the U.S. to address the issue.
Please enjoy this episode with GMO’s Jeremy Grantham.
In episode 285, we welcome our guest David Marcus, the co-founder and Chief Investment Officer of Evermore Global Advisors, where he manages the Evermore Global Value Fund. In today’s episode, we’re talking about David’s best idea: special situations in Europe.
David’s been investing in Europe for almost his entire career and thinks now is the best opportunity for special situations he has ever seen. First, he explains what it was like for him to watch legendary investor Michael Price navigate the 1987 crash. Then David explains what led him to start Evermore Global and the firm’s investment philosophy. He touches on the different types of special situations he focuses on, including spinoffs, restructurings, and breakups, and why activism, catalysts, and cheaper valuations make Europe especially attractive.
As the conversation winds down, David talks about some of his current holdings and the benefits of investing in family-owned businesses.
Please enjoy this special “Best Ideas” episode with Evermore Global Advisor’s David Marcus.
In episode 284, we welcome our guest, Michael Gayed, a Portfolio Manager at Toroso Investments, where he runs two tactical, risk-on, risk-off strategies. He’s also the publisher of the Lead-Lag Report.
In today’s episode we’re talking about how to use indicators to decide when to go risk-on, risk-off. Michael explains how he came to focus on risk management early in his career and has kept that mentality since. He walks us through how he uses the utilities sector as an indicator for when volatility is going to spike, which worked well in 2020, helping him return over 70% in his ATAC fund. Then he takes us through his award winning paper on lumber and gold, two seemingly uncorrelated commodities that actually work well together to serve as a strong indicator for inflationary or deflationary conditions.
As we wind down, he explains how often he assesses these signals and what they are showing as we start 2021.
Please enjoy this episode with Toroso Investment’s Michael Gayed.