TIP558: How Ackman & Taleb Profited Billions During Market Crashes w/ Scott Patterson

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

Stig Brodersen

Business, Education, Investing

4.6 • 3.6K Ratings

🗓️ 9 June 2023

⏱️ 63 minutes

🔗️ Recording | iTunes | RSS

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Summary

On today’s episode, Clay chats with Scott Patterson about his new book - The Chaos Kings. The Chaos Kings tells the story of the hedge fund that achieved average annual returns of over 105% from 2008 through 2019, and how Bill Ackman had a $27 million dollar bet that turned into over $2.6 billion. IN THIS EPISODE YOU’LL LEARN: 00:00 - Intro. 02:35 - Who the Chaos Kings are. 05:38 - The story of Nassim Taleb and Mark Spitznagel setting up a hedge fund that delivered average returns of 105% annually. 06:12 - How these hedge funds profit tremendously during times of calamity. 16:14 - What led Nassim Taleb to get interested in the markets. 24:55 - Why we should be mindful of just how uncertain the world and our global economy is today. complexity theory - What complexity theory is. 28:51 - How investors can protect themselves from a black swan event. 45:02 - How Taleb and Spitznagel viewed the world differently than conventional wisdom. 53:12 -How predictable Black Swan events are. 57:41 - Looming Black Swans that Taleb sees in today’s world. 60:49 - What the precautionary principle is. 63:23 - Taleb and Spitznagels take on the systemic risks in the financial system today. Disclaimer: Slight discrepancies in the timestamps 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. Scott’s new book - The Chaos Kings. Scott’s website. Check out our recent episode covering the 2023 Berkshire Hathaway Shareholder Meeting or watch the video. Follow Clay 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: River Toyota Sun Life The Bitcoin Way Range Rover Sound Advisory BAM Capital Fidelity SimpleMining Briggs & Riley Public Shopify HELP US OUT! Help us reach new listeners by leaving us a rating and review on Apple Podcasts! It takes less than 30 seconds, and really helps our show grow, which allows us to bring on even better guests for you all! Thank you – we really appreciate it! 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 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.
0:03.1	On today's episode, I'm joined by Scott Patterson.
0:06.4	Scott has been a reporter for more than two decades, mostly at the Wall Street Journal.
0:10.7	He just published a new book called The Chaos Kings, which showcases a deep dive into
0:15.9	the world of hedge fund managers and traders that profit tremendously during times of calamity.
0:21.5	For example, during the COVID crisis, Bill Ackman had a $27 million bet that turned into
0:27.5	over $2.6 billion.
0:30.9	The Chaos Kings largely highlights a hedge fund run by Mark Spitz-Negel in the same teleb.
0:36.2	These two have profited tremendously from calamity for many decades.
0:40.9	Teleb saw his first big success during the 1987 Black Monday crisis, and these two joined
0:46.2	forces in the hedge fund industry in 1999.
0:49.5	In this episode we cover who the Chaos Kings are, the story of Teleb and Spitz-Negel setting
0:54.6	up a hedge fund that delivered average annual returns of over 105%.
1:00.7	Yes, you heard that right.
1:02.4	Average annual returns of over 105%.
1:06.4	How these hedge funds managed to profit tremendously during times of calamity?
1:10.6	What led Nesim to lead to get interested in the markets in the first place?
1:14.3	Why should we be mindful of just how uncertain the world is and our global economy is today?
1:19.6	How investors can protect themselves from a Black Swan event?
1:23.2	How predictable Black Swan events are for these traders?
1:26.3	Looming Black swans that teleb seize in today's world and so much more.
1:31.2	I thoroughly enjoyed this conversation with Scott, and I hope you enjoy it as well.
	...

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