RWH067: Prudent Investing In Perilous Times w/ Matthew McLennan
The Investor's Podcast (We Study Billionaires) - The Investor’s Podcast Network
Variegation vs naive diversification
Matt defines variegation: intentional non-uniform portfolio construction centered on scarce assets and global spread.
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.
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