Invest Like the Best with Patrick O'Shaughnessy Meb Faber - Factors, Dividends, and Angel Investing - [Invest Like the Best, EP.53]
Sep 7, 2017
Meb Faber, co-founder of Cambria Investment Management and quantitative researcher, shares his insights on innovative investment strategies that challenge traditional practices. He discusses key factors for maximizing returns using a unique draft approach. The conversation also delves into the intricacies of angel investing in fintech, emphasizing the importance of customer acquisition and emerging trends. Additionally, they explore the complexities of liquidity in investment products and the evolution of the podcasting landscape, balancing creativity with quality.
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Avoid High Dividends in Taxable Accounts
- Avoid investing in high dividend yielding companies in taxable accounts to reduce tax drag.
- Focus on pure value stocks while avoiding the top quartile of dividend yielders for better after-tax returns.
Illiquidity as an Investment Advantage
- Investing in private startups offers behavioral and tax advantages due to illiquidity.
- Illiquidity prevents behavioral mistakes and can shield gains from taxes after five years.
Angel Investing Early Experience
- Meb Faber made about 25 angel investments ranging from a few thousand dollars to late-stage startups.
- His one exit returned 20% and was in a company improving estate planning processes.
