25min chapter

Compounders Podcast cover image

Power Laws and Public Markets with Meb Faber, Founder & CIO of Cambria Investment Management

Compounders Podcast

CHAPTER

Optimizing Portfolio Performance with Global Exposure and Power Law Insights

The chapter explores the benefits of a global market portfolio in asset allocation, emphasizing the challenges of outperforming this diversified approach. It delves into the concept of power law distribution in equities, highlighting the importance of owning big winners for significant returns. Insights are provided on portfolio construction, positioning new assets, and the mental aspects of investing, stressing the necessity of diversification and low fees for optimal outcomes.

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