RWH067: Prudent Investing In Perilous Times w/ Matthew McLennan
The Investor's Podcast (We Study Billionaires) - The Investor’s Podcast Network
Humility, uncertainty, and margin of safety
Matt argues humility prevents overconfidence, enforces margin of safety, and supports prudent investing.
In this episode, William Green talks with Matthew McLennan, who oversees about $130 billion at First Eagle Investments. Matt is head of the firm’s Global Value team & a portfolio manager of its Global Value, Global Equity, International Value, International Equity & US Value strategies. Here, he explores how to build resilient wealth by patiently holding a “non-uniform” portfolio of scarce assets that should endure & prosper even in difficult conditions. This episode provides a time-tested survival strategy for investors looking to navigate this period of extreme uncertainty.
IN THIS EPISODE YOU’LL LEARN:
00:00:00 - Intro
00:02:14 - Why Matthew McLennan thinks investors should prepare for turmoil.
00:17:43 - How to construct a resilient portfolio by thinking like a gardener.
00:19:38 - Why Matt loves businesses with scarce assets in mundane industries.
00:23:02 - Why survival is the key to investment success.
00:23:33 - How cash & gold provide a ballast in the event of unexpected storms.
00:26:28 - Why he’s wary of a highly concentrated investment strategy.
00:51:07 - How patience has become a powerful edge in a hyperactive world.
00:57:17 - How to build long-term success by focusing on process, not rewards.
01:05:28 - How to think better by harnessing our right-brain capabilities.
01:23:05 - Why “what’s hot today” is likely to produce terrible investment returns.
01:25:10 - How studying wine & playing backgammon help him as an investor.
01:29:04 - Why he favors a team-based approach, instead of being a lone wolf.
Disclaimer: Slight discrepancies in the timestamps may occur due to podcast platform differences.
BOOKS AND RESOURCES
- Join the exclusive TIP Mastermind Community.
- Learn how to join us in Omaha for the Berkshire meeting here.
- Inquire about William Green’s Richer, Wiser, Happier Masterclass.
- Thucydides’ book, History of the Peloponnesian War.
- Daniel Yergin’s book, The Prize.
- John Cochrane’s book, The Fiscal Theory of the Price Level.
- Peter Matthiessen’s book, The Snow Leopard.
- Iain McGilchrist’s book, The Matter with Things.
- David Galenson’s book, Old Masters and Young Geniuses.
- Charles de Montesquieu’s book, The Spirit of the Laws.
- Stephen Wolfram’s book, A New Kind of Science.
- Winston Churchill’s book, My Early Life.
- William Green’s book, Richer, Wiser, Happier.
- Follow William Green on X.
- Related books mentioned in the podcast.
- Ad-free episodes on our Premium Feed.
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