We Study Billionaires - The Investor’s Podcast Network TIP382: Investing Mastermind Q3 2021
Sep 26, 2021
Tobias Carlisle, founder of Acquirers Fund and deep value investing expert, Jake Taylor from Farnam Street Investments, and Dr. Wes Gray, a quantitative investing specialist, dive into the holy grail of investing. They discuss the importance of diversification across uncorrelated assets, the impact of passive investing, and the psychological discipline needed for success. The trio critiques commission-free trading platforms like Robinhood, exploring their risks and implications for novice investors, while emphasizing the role of trends and unique strategies in today’s market.
AI Snips
Chapters
Books
Transcript
Episode notes
Trend Following as a Hedge
- Trend following can act as a portfolio hedge during market downturns, but implementation is difficult.
- It has underperformed in strong bull markets due to whipsawing and requires careful evaluation.
Types of Trend Following
- Two types of trend following exist: long-term for risk management and high-frequency for crisis alpha.
- Long-term trend following is simple (stay in uptrends, avoid downtrends) but psychologically challenging.
Managed Futures Allocation
- Allocate significantly to managed futures or trend following or consider cash.
- A small allocation to trend following is likely ineffective.
