Mebisode discusses the idea of owning no US stocks and challenges the belief that stocks are the best way to build wealth. It explores the concept and benefits of this approach, analyzing returns, statistics, and different portfolio strategies.
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insights INSIGHT
U.S. Stocks Aren't The Only Way
U.S. stocks have long been the dominant and default allocation for investors but aren't the only path to wealth creation.
A diversified non-U.S. allocation from 1972–2022 produced nearly identical annual returns and risk metrics to U.S. stocks.
question_answer ANECDOTE
Quick Backtest Produced Surprising Parity
Meb ran a quick backtest using Cambria's asset class backtester to compare U.S. and non-U.S. allocations.
He limited inputs to market-cap weighting and passive assets and found near-identical stats across columns.
volunteer_activism ADVICE
Build Simple Diversified Non-U.S. Portfolios
Try building diversified portfolios using market-cap weighted non-U.S. assets rather than relying solely on U.S. equities.
Keep allocations simple and avoid overemphasizing exact percentages; fees, taxes, and behavior matter more.
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Sponsor: Today’s episode is sponsored by The Idea Farm. The Idea Farm gives you access to over $100,000 worth of investing research, the kind usually read by only the world’s largest institutions, funds, and money managers. Subscribe for free here.
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