Hendrik Bessembinder - Do Stocks Outperform T-Bills? | #532

The Meb Faber Show - Better Investing

The Idea Farm

Business, Investing, Management

4.7 • 938 Ratings

🗓️ 3 May 2024

⏱️ 42 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

Today’s guest is Hendrik Bessembinder, a professor at Arizona State University. 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 of Hank's findings for investors, including the importance of diversification and the challenges of holding onto big winners. (1:06) - Welcome to our guest, Hendrik Bessembinder (1:27) - Do Stocks Outperform Treasury Bills? (6:16) - Power laws drive stock market returns (13:52) - The importance of holding on to winners in your portfolio (15:22) - Shared traits among the best stocks (23:10) - Takeaways from his global studies (28:21) - Mutual Fund Performance and Long Horizons (31:34) - Other topics Hank is interested in researching (37:52) - Hendrik’s most memorable investment Learn more about Hendrik: SSRN; Lessons from Bessembinder ----- Follow Meb on Twitter, LinkedIn and YouTube For detailed show notes, click here To learn more about our funds and follow us, subscribe to our mailing list or visit us at cambriainvestments.com ----- Sponsor: 10 East is a membership-based investment firm founded by Michael Leffell, former Deputy Executive Managing Member of Davidson Kempner, focused on providing targeted exposure to private markets. Members invest at their discretion in single-investment and niche fund vehicles across private credit, real estate, private equity, and venture capital. Follow The Idea Farm: Twitter | LinkedIn | Instagram | Tik Tok ----- Interested in sponsoring the show? Email us at [email protected] ----- Past guests include Ed Thorp, Richard Thaler, Jeremy Grantham, Joel Greenblatt, Campbell Harvey, Ivy Zelman, Kathryn Kaminski, Jason Calacanis, Whitney Baker, Aswath Damodaran, Howard Marks, Tom Barton, and many more. ----- Meb's invested in some awesome startups that have passed along discounts to our listeners. Check them out here! Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	Welcome to the Mebb Faver Show, where the focus is on helping you grow and
0:08.0	preserve your wealth. Join us as we discuss the craft of investing and
0:11.3	uncover new and profitable ideas all to help you grow
0:13.9	wealthier and wiser. Better investing starts here.
0:17.0	Meck Baber is the co-founder and chief investment officer at Cambria Investment
0:20.7	Management. Due to industry regulations he will not discuss any of Cambry's funds on this podcast.
0:25.1	All opinions expressed by podcast participants are solely their own opinions and do not
0:28.3	reflect the opinion of Cambria Investment Management or its affiliates.
0:31.2	For more information, visit Cambria Investments.com.
0:33.4	American Farmland is disappearing at an alarming rate. According to the USDA, the US has lost four acres of farmland
0:45.8	per minute since 2000.
0:47.5	That's a landmass larger than the state of Florida,
0:50.0	lost a real estate development and soil burnout.
0:53.3	All the while the demand for food, especially healthy, organic food,
0:56.7	continues to rise as much as 13% annually in recent years.
1:01.3	Farmland LP is one of the largest investment funds in the US focused on the organic market,
1:06.8	is ideally suited to take advantage of the dwindling supply of farmland and the rapidly increasing demand for food.
1:13.4	Its strategy focuses on converting conventional farmland to USDA certified organic
1:18.5	regenerative farmland.
1:19.7	They have a portfolio of more than 16,000 organic and sustainably farmed acres and a 15 year track record of success.
1:27.0	Their goal is simple to produce attractive returns for investors while benefiting the environment.
1:32.0	In today's world of high inflation,
	...

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