YouSaid · the spoken record

Laurence Siegel

lines on the record: 62
first: 2020-05-11
most recent: 2020-05-11
sittings or episodes: 1
sources: podcast

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“For example, myth number one there's so much indexing that the market must be getting more inefficient because there's not enough money managed by people who analyze securities. That's a myth.”
2020-05-11 · Capital Allocators · Laurence Siegel – Current Myths and Long-Term Optimism (Capital Allocators, EP.137) · IDENTIFIED FROM THE TRANSCRIPT · source
“In 2011, I was invited to travel to Brazil. So I went because I wanted to see Rio de Janeiro, but the conference was in San Paulo. So I got to see two cities, one beautiful and the other not. They asked me what would you like to talk about? And I said, Believe that a lot of investors are beholden to wrong thinking. It is fun to be a myth buster. It's fun to say that the emperor has no clothes. It's fun to say I'm smarter than other people. So I wrote a thing called Nine Myths of Investing, and I gave a talk there. And after five years, I updated it and I published it again. 2020 was so different from 2016 that I said, why don't I just update the myths one more time, but have a different approach and look at more macro myths.”
2020-05-11 · Capital Allocators · Laurence Siegel – Current Myths and Long-Term Optimism (Capital Allocators, EP.137) · IDENTIFIED FROM THE TRANSCRIPT · source
“Well, I thought that I should invest with some of the managers. It's just that they have high minimums. If you need a million dollars to invest with the manager, I'm not going to put a large percentage of my personal net wealth in with one manager, but one of them who has a 40-act fund, I gave him $25,000, and I have about $15,000 left. It's a frontier markets fund. US market down, the frontier markets are down more. But, you know, my philosophy is kind of by all the way down because at some point you're going to be very happy with those prices. And I'm 65, but I'm fairly immature. And if I ever become a grown-up and 75 or 85, I'll look back on today's prices and think that they were pretty good. They're not awesome in the United States, but in the rest of the world, I think the whole global...”
2020-05-11 · Capital Allocators · Laurence Siegel – Current Myths and Long-Term Optimism (Capital Allocators, EP.137) · IDENTIFIED FROM THE TRANSCRIPT · source
“Since I left, I have only managed my own portfolio, which is a very modest portfolio, but it still takes management. And when I do is I buy index funds and then forget about them. And I don't literally subscribe to the view of never stell anything because that's a tax strategy and I don't pay taxes on my IRA and 401k. But I believe that if you try to time in and out of markets that you will tend to buy high and sell low and that's the opposite of what you should be doing. My rancher friend in Oregon says his strategy is to buy sheep, sell deer. I listen carefully and I thought he was saying buy sheep sell deer and that's what I'm trying to do. But I haven't had any luck with the sell deer part only. Keep buying and hoping that it's cheap.”
2020-05-11 · Capital Allocators · Laurence Siegel – Current Myths and Long-Term Optimism (Capital Allocators, EP.137) · IDENTIFIED FROM THE TRANSCRIPT · source
“You'd mention there's this difference between you're in the thick of it, running around the world talking to all these smart managers and trying to be smart. And then it sounds like, you know, when you come out, you're paying more attention to the Meyer Statman quote on the wall. So how have you changed the way you've thought about manager selection and the value added of active management since you've left the Foreign Foundation?”
2020-05-11 · Capital Allocators · Laurence Siegel – Current Myths and Long-Term Optimism (Capital Allocators, EP.137) · IDENTIFIED FROM THE TRANSCRIPT · source
“Cloud of people that hang around the money management solar system and just found out what they were doing and tried to find little areas where I could contribute to it and I published a lot. So I wanted to get my name out there even more than I did at Edson Associates because the main job that you have when you have a job is to make sure that you can get another job. That route, no offense to the Great Ford Foundation, but you have to keep your resume sharp and the way that a research professional does it is by publishing a lot of research.”
2020-05-11 · Capital Allocators · Laurence Siegel – Current Myths and Long-Term Optimism (Capital Allocators, EP.137) · IDENTIFIED FROM THE TRANSCRIPT · source
“Head of research at a planned sponsor or asset owner is really more like a head of risk and asset allocation. We didn't do research to help sell our product to clients We did it for our own benefit and ultimately the benefit of the people we give money to. So I structured the job as responding to. Requests by my boss, Linda, my trustees, because I was responsible for a lot of the communication with the foundation's trustees and by other employees, other senior employees, to find out what they needed done. And then on my own... Account, so to speak. I was in touch with all the Directors of research at Broker Hedge Houses, money management firms, professors at universities, consultant, this sort of.”
2020-05-11 · Capital Allocators · Laurence Siegel – Current Myths and Long-Term Optimism (Capital Allocators, EP.137) · IDENTIFIED FROM THE TRANSCRIPT · source
“You've pretty much heard all their sales pitches. You know all of them personally, you know pretty much what they know. You just don't do the detailed work that they do. So if you meet one who teaches you something that's really new and different, then you have a chance of getting exceptional returns from that manager. Otherwise, they're all moving in a herd and doing the same thing. So that would be the manager you hire.”
2020-05-11 · Capital Allocators · Laurence Siegel – Current Myths and Long-Term Optimism (Capital Allocators, EP.137) · IDENTIFIED FROM THE TRANSCRIPT · source
“The most important lesson is a Sign or a poster that hangs on me or Statman's. Walt. He's a professor. At the University of Santa Clara, who works on behavioral Which is other people are not so stupid and you are not so smart. So when you think you're going to try to beat the market by doing careful due diligence and knowing all the colorful and interesting money managers in the world. And traveling to visit their offices. Doing what clean sponsors do, you may or may not. Think we did over the very long run. But most of that was by having more equities. Then the average foundation in a period when equities went up. Tremendously. The other important thing I learned. Is that when you're evaluating a manager”
2020-05-11 · Capital Allocators · Laurence Siegel – Current Myths and Long-Term Optimism (Capital Allocators, EP.137) · IDENTIFIED FROM THE TRANSCRIPT · source
“Meanwhile, I had been recruited out of that organization in 1994 by the Ford Foundation, which made me their head of research. Worked as a plan sponsor, selecting managers, evaluating performance, kind of acting as a deputy CIO. 15 years working for Linda Strum. One of the great chief investment officers of our time. And after that, Amount of time Retired Set up a consulting practice, it's hard to call it a firm. Because it's just me and a couple of part time helpers. That's what I do. I write. Mostly white papers for money management firms to hand out to their clients, but also The head of research part time from home The CFA Institute Research Foundation. And most recently, I've become Author with a book. Called Greener, which was published by Wiley last year.”
2020-05-11 · Capital Allocators · Laurence Siegel – Current Myths and Long-Term Optimism (Capital Allocators, EP.137) · IDENTIFIED FROM THE TRANSCRIPT · source
“One point after getting an MBA from the University of Chicago needed a job. And I had worked for my professor, Roger Ibotson, as a research assistant, and he hired me as the first employee of Ibinson Associates, which didn't actually exist. He handed me a big pile of paper and he said, well, I'm testifying on a utility rate of return hearing tomorrow morning. And I'd like you to read this and tell me what it says. So he gave me an office on the floor of his office. I'm a night owl and he's an early bird, so when he left round two, I got his desk and I stayed up and I wrote a summary of the pile of paper and it was there for him when he got there in the morning. Beginning of Ibsen Associates. This eventually turned into a well known data and consulting firm, which was merged into Morningstar a little more than a decade ago.”
2020-05-11 · Capital Allocators · Laurence Siegel – Current Myths and Long-Term Optimism (Capital Allocators, EP.137) · IDENTIFIED FROM THE TRANSCRIPT · source
“I guess on today's show is Larry Siegel, the Gary Brinson Director of Research at the CFA Institute Research Foundation and an independent consultant, writer and speaker. Before his quote-unquote retirement, Larry spent fifteen years as the head of research at the Ford Foundation, and a dozen before that at Ibotson Associates. Our conversation starts with lessons Larry learned in his time as an allocator and turns to his recent paper describing the ten myths of investing, an allocator's version of Byron Ween's annual surprises. After walking through each, we touch on his recently released book, Fewer, Richer, Greener, which offers a case for long-term prosperity and growth even amidst the unexpectedly challenging times we're currently facing. Please enjoy my conversation with Larry Siegel”
2020-05-11 · Capital Allocators · Laurence Siegel – Current Myths and Long-Term Optimism (Capital Allocators, EP.137) · IDENTIFIED FROM THE TRANSCRIPT · source