Meb Faber Research – Stock Market and Investing Blog

What's the best performing stock of all time?   We're talking about a total percentage gain of 265,528,901%.   $1,000 invested in this stock would be worth over $2.5 billion today.   To answer this question, we turned to Hank Bessembinder, who authored the famous academic paper "Do Stocks Outperform Treasury Bills?"   80 stocks have returns of over 500,000% in their lifetime.   Some guessed Berkshire (BRK),...

 Guests: Brendan Ahern is the Chief Investment Officer at KraneShares, which provides investors access to China, Climate, and other uncorrelated strategies. He also produces China Last Night, a daily note recapping important news out of China.  Recorded: 5/22/2024  |  Run-Time: 52:09    Summary: In today’s episode, Brendan delves into the current state of China's stock market and economy, exploring the impact...

 Guests: Michael Melissinos is the founder of Melissinos Trading, an investment firm that employs a systematic trend-following approach. Recorded: 5/15/2024  |  Run-Time: 40:04    Summary: In today’s episode, Mike shares his journey into trend following and his approach to trading. He emphasizes the importance of removing biases and opinions when observing trends and executing trades. We get into the nuances of...

 Guests: Eric Crittenden, CIO of Standpoint Asset Management, and Jason Buck, CIO of Mutiny Funds. Recorded: 5/1/2024  |  Run-Time: 01:16:52    Summary: In today’s episode, we talk about the sentiment around trend-following today. We discuss optimal diversifiers for trend-following, how the Herschel Walker trade relates to portfolio construction, and if investors are as diversified as they think they are. Sponsor: Today's episode...

 Guest: Hendrik Bessembinder, a professor at Arizona State University. Recorded: 4/24/2024  |  Run-Time: 43:38  Summary: In today’s episode, Meb and Hank discuss Hank's research on long-term stock returns and wealth generation. They explore the concept of power laws in the stock market, where a small percentage of stocks generate significant returns, while the majority underperform. They also discuss the implications...

Guest: Catherine LeGraw is a member of GMO’s Asset Allocation Team. Recorded: 4/17/2024  |  Run-Time: 45:15 Summary: In today’s episode, Catherine explains why this is “the best relative asset allocation opportunity we’ve seen in 35 years," and “we are building portfolios with some of the highest forecasted relative and absolute returns we’ve ever seen." She explains where she sees opportunity...

Guest: Kenneth French is the Roth Family Distinguished Professor of Finance at the Tuck School of Business at Dartmouth College. He is an expert on the behavior of security prices and investment strategies. Recorded: 4/10/2024  |  Run-Time: 53:45  Summary: In today’s episode, Ken shares what topic he and Professor Fama disagree on. Then we get into a number of topics:...

Wrote a fun little piece on bonds: "T-Bills and Chill....Most of the Time" It never made much sense to me to take on a bunch of risk in bonds if they yield similar amounts to T-Bills (or even less!) So what if you only invested in riskier bonds when the spread is wide enough? Sort of a rules-based value...

For the full list by country head on over to The Idea Farm...it's free! Source Global Financial Data  

Here's a crazy stat that no one will believe. The universal investment benchmark is the 60/40 portfolio of stocks and bonds. What if you replaced the bonds entirely with gold....crazy right? Turns out it makes no real difference. ¯_(ツ)_/¯   Source: GFD