Manage episode 342798015 series 1394353
William chats with Matthew McLennan about how to achieve resilient wealth creation, which is a central focus of William's book “Richer, Wiser, Happier." This interview was recorded on August 30, 2022.
IN THIS EPISODE, YOU'LL LEARN:
- 02:36 - How Matthew McLennan grew up off the grid without electricity or hot running water.
- 12:56 - What he learned as a money manager at Goldman Sachs during the dotcom bubble.
- 15:57 - Why investors should try to emulate the patient, selective mindset of gardeners.
- 27:01 - How the most resilient businesses remind Matt of great wines and enduring artworks.
- 35:01 - Why investors need to respect the phenomenon of entropy as an ironclad law of life.
- 44:18 - Why investors should be wary of hot growth stocks, which are liable to fade.
- 46:27 - Why there’s surprising beauty in mundane businesses like bicycle brakes & elevators.
- 57:14 - How to ask the right “splitting” questions as a way to rule out what you shouldn’t own.
- 1:07:07 - Why gold might be more attractive than Bitcoin as a potential hedge against chaos.
- 1:18:25 - Why it’s wise to diversify overseas, where many stocks are much cheaper than in the US.
- 1:23:33 - Why the high-flying US dollar is at risk of weakening in the years to come.
- 1:32:59 - Why Matt is wary of Chinese stocks & thinks China’s ascendancy is not inevitable.
- 1:37:17 - What history can teach us about the growing risk of war between the US & China.
- 1:38:52 - Why it’s critical to set aside time to read, reflect, & distill what you’re learning.
*Disclaimer: Slight timestamp discrepancies may occur due to podcast platform differences.
BOOKS AND RESOURCES
- Website for First Eagle Investments.
- Fred Schwed’s classic book, Where Are the Customers’ Yachts?
- History of the Peloponnesian War by Thucydides.
- Hendrik Bessembinder’s study of wealth creation in US stocks from 1926-2019.
- William Green’s book, “Richer, Wiser, Happier” – read the reviews of this book.
- Follow William Green on Twitter.
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