RWH014: The Resilient Investor w/ Matthew McLennan

The Investor's Podcast (We Study Billionaires) - The Investor’s Podcast Network

Stig Brodersen

Education, Investing, Business

4.6 • 3.6K Ratings

🗓️ 2 October 2022

⏱️ 118 minutes

🔗️ Recording | iTunes | RSS

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Summary

William chats with Matthew McLennan about how to achieve resilient wealth creation, which is a central focus of William's book “Richer, Wiser, Happier." This interview was recorded on August 30, 2022. IN THIS EPISODE, YOU'LL LEARN: 02:36 - How Matthew McLennan grew up off the grid without electricity or hot running water. 12:56 - What he learned as a money manager at Goldman Sachs during the dotcom bubble. 15:57 - Why investors should try to emulate the patient, selective mindset of gardeners. 27:01 - How the most resilient businesses remind Matt of great wines and enduring artworks. 35:01 - Why investors need to respect the phenomenon of entropy as an ironclad law of life. 44:18 - Why investors should be wary of hot growth stocks, which are liable to fade. 46:27 - Why there’s surprising beauty in mundane businesses like bicycle brakes & elevators. 57:14 - How to ask the right “splitting” questions as a way to rule out what you shouldn’t own. 1:07:07 - Why gold might be more attractive than Bitcoin as a potential hedge against chaos. 1:18:25 - Why it’s wise to diversify overseas, where many stocks are much cheaper than in the US. 1:23:33 - Why the high-flying US dollar is at risk of weakening in the years to come. 1:32:59 - Why Matt is wary of Chinese stocks & thinks China’s ascendancy is not inevitable. 1:37:17 - What history can teach us about the growing risk of war between the US & China. 1:38:52 - Why it’s critical to set aside time to read, reflect, & distill what you’re learning. *Disclaimer: Slight timestamp discrepancies may occur due to podcast platform differences. BOOKS AND RESOURCES Join the exclusive TIP Mastermind Community to engage in meaningful stock investing discussions with Stig, Clay, and the other community members. Website for First Eagle Investments. Fred Schwed’s classic book, Where Are the Customers’ Yachts? History of the Peloponnesian War by Thucydides. Hendrik Bessembinder’s study of wealth creation in US stocks from 1926-2019. William Green’s book, “Richer, Wiser, Happier” – read the reviews of this book. Follow William Green on Twitter. NEW TO THE SHOW? Check out our We Study Billionaires Starter Packs. Browse through all our episodes (complete with transcripts) here. Try our tool for picking stock winners and managing our portfolios: TIP Finance Tool. Enjoy exclusive perks from our favorite Apps and Services. Stay up-to-date on financial markets and investing strategies through our daily newsletter, We Study Markets. Learn how to better start, manage, and grow your business with the best business podcasts. SPONSORS Support our free podcast by supporting our sponsors: Bluehost Fintool PrizePicks Vanta Onramp SimpleMining Fundrise TurboTax Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Learn more about your ad choices. Visit megaphone.fm/adchoices Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm

Transcript

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0:00.0	You're listening to TIP.
0:02.9	Hi there, my guest today is Matthew McClellan, who is co-head of the global value team at
0:08.0	First Eagle Investments.
0:09.7	Mad overseas an enormous amount of money, about $90 billion on the half of millions of
0:14.9	investors.
0:15.9	After 14 years at Goldman Sachs, Matt joined First Eagle back in 2008 when he was handpicked
0:21.6	to be the successor to a legendary investor named Jean-Marie Eveyard.
0:26.4	In my book, Richard Weisser-Happier, I wrote a whole chapter about Jean-Marie and Matt,
0:31.2	describing their distinctive approach to a challenge that all investors face.
0:35.6	Namely, how can we build wealth in a durable way over many decades in such an uncertain
0:41.4	and wildly unpredictable world?
0:44.3	This question of how to become a truly resilient investor seems particularly relevant right
0:49.4	now.
0:50.4	As we've seen very dramatically this year, everything can turn upside down in an instant,
0:55.6	with a long and glorious bull market, suddenly giving way to a vicious bear market, a brutal
1:01.2	war in Ukraine, and run away inflation.
1:03.9	Over the last few years, I've spent a great deal of time with Matt discussing this question
1:08.9	of how to invest prudently for the long term in a world that's full of these unpleasant
1:14.1	risks and surprises.
1:16.2	We first spoke about this for my book, and have continued since I became a senior advisor
1:20.6	to his investment firm last year.
1:23.2	One lesson that I've drawn from all of these discussions is that really the first priority
	...

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