Monetary Matters with Jack Farley “The Humble Investor” | Dan Rasmussen on Mag7, Value, Private Equity & Credit, and More
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Feb 10, 2025 
Dan Rasmussen, founder and CIO of Verdad Advisers and author of "The Humble Investor," shares compelling insights into the complexities of value investing and private equity. He discusses navigating the turbulent waters of AI investments, emphasizing a balanced strategy amid fluctuating market sentiments. Rasmussen explores the rise of private credit and its risks, highlighting the overlooked micro and nano cap stocks as hidden gems. He also underscores the importance of humility in investment, advocating for an awareness of market dynamics and avoiding overconfidence.
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Meta-Analysis over Analysis
- Investing is not about analysis, but meta-analysis: what you think relative to the market.
- Excessive enthusiasm creates opportunities because an unpredictable future allows for contrarian bets.
Silicon Valley and Stock Quality
- Investors often overextrapolate past trends when forecasting, like assuming continued Silicon Valley success.
- Separate product quality from stock quality; the latter depends on valuation, influencing win probability.
Humble Diversification
- Diversify humbly with market-cap weighted allocations, including international stocks and bonds.
- Avoid over-concentration in US equities, considering the risk-reward profile of diverse markets.