The Long View

Victor Haghani: Lessons From the Missing Billionaires

Apr 2, 2024

Victor Haghani, co-author of The Missing Billionaires, delves into optimal wealth allocation, retirement spending strategies, and the impact of leverage on investment returns. He shares insights on navigating low expected returns and emphasizes the importance of making wise financial decisions for a fulfilling life.

52:09

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Victor Haghani

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Quick takeaways

Understanding the importance of investment sizing in financial decisions for better outcomes.

Recognizing the need for accessible financial literature to educate current and future generations on wealth preservation.

Deep dives

The Origin of The Missing Billionaires Book

Victor Haganee explains that the idea for the book The Missing Billionaires emerged much later after his experience at Long-Term Capital Management (LTCM). The book was inspired by a framework that he wished he had access to during his time at LTCM. Collaborating with his eventual co-author, James White, they identified a gap in personal finance literature and tailored the book to appeal to a younger audience.

Maximizing Utility with Wealth

00:54

Balancing Smooth Spending and Increased Consumption during Retirement

01:37

Value of Reflection in Learning from Historical Events

01:24

Planning for Wealth Disposal

00:31

Introduction

3min

Exploring the Mystery of Missing Billionaires

2min

Exploring Complex Financial Concepts Through Engaging Storytelling

2min

Optimal Wealth Allocation and Maximizing Expected Utility

22min

Long-term Wealth Management Implementation Strategies and Planning Exercises

2min

Navigating Low Expected Returns and Leveraged Hedge Fund Trading

18min

Evolving Perspective on Happiness and Money Through Experience and Literature

2min

Concluding Remarks and Podcast Information

3min

Our guest on the podcast today is Victor Haghani. He is the co-author of a new book called The Missing Billionaires: A Guide to Better Financial Decisions. In 2011, Victor founded Elm Wealth, an investment advisory firm for high-net-worth individuals. He started his career at Salomon Brothers in 1984, where he became a managing director in the bond arbitrage group. And in 1993, he was a co-founding partner of Long-Term Capital Management. He graduated from the London School of Economics with a bachelor’s degree in economics.

Background

Bio

Elm Wealth

The Missing Billionaires: A Guide to Better Financial Decisions, by Victor Haghani and James White

Investment Sizing and Expected Utility

“The Most Costly Investment Mistake You Can Make Is Easy to Avoid,” by Victor Haghani and James White, Bloomberg.com, Feb. 14, 2024.

“Bigger Is the Enemy of Better Investing,” by Victor Haghani and Richard Dewey, businesstimes.com, March 20, 2021.

Robert K. Merton

“Merton Model: Definition, History, Formula, What It Tells You,” by Will Kenton, Investopedia.com, Aug. 10, 2022.

“Lifetime Portfolio Selection Under Uncertainty: The Continuous-Time Case,” by Robert C. Merton, jstor.org, August 1969.

“How Much of a Good Thing Is Too Much?” by Victor Haghani, linkedin.com, Oct. 11, 2022.

“To Realize, or Not to Realize,” by Victor Haghani and James White, elmwealth.com, Oct. 22, 2020.