Meb Faber
The Disruptor
Contrarian and drawn to the edge; challenges the settled answer.
Meb Faber fits The Disruptor because his instinct is to excavate neglected mechanisms and put them in the hands of ordinary investors. His revival of the century-old 351 exchange structure captures the pattern: rather than refining existing ETF products, he asked why institutional-grade tax efficiency was closed to retail allocators, then built the answer himself.
“You remember a coming right out of college? I was doing biotech and it was long only, so it didn't matter if you pick the four or ten best biotech stocks out of the sector. They all went down 60, 70, 80 percent, right?”
“Very cheap. So even just buying emerging or developed markets, you're getting a valuation ratio of around 15. U.S. is at 27, right? So in half the world by market cap is foreign, 80% of the world by GDP is foreign. So at a minimum, you should have 50% in foreign.”
“Well, that'll probably be the turning tipping point, right? And there's that classic chart where the periodic table and investing returns, right? Where each year you show how everything bounces around. But right there in the middle is the asset allocation portfolio. Never the best, never the worst, but kind of right there in the middle.”
“In China. And so historically, but it's just creative destruction, right? It's capitalism, and that's about it. But it's funny because if you look at Apple right now, it's the exact flip side of when you saw it. So, right? There's no reasons almost not to invest in Apple, right? They're coming out with the world changing products I own.”
Masters in Business: “At the Money: Deferring Capital Gains on Appreciated Equity”
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