One of the financial podcasts that I listen to occasionally is the Meb Faber Show. Meb is co-founder and Chief Investment Officer for Cambria Investment Management which offers ETFs and other investment products based on Meb's extensive research on quantitative and value investing.
He records a podcast each week where he typically interviews a prominent investor to discuss their background, investment strategy, and current viewpoint on the market. Episode #257 released on October 21, 2020 featured Marc Levine who was the former chairman of one of Illinois's pension funds and helped guide it to a passive, index approach to save fees and improve returns.
One of the key takeaways from the podcast are the four tribes that Marc views most investors are classified as.
- Permabears - these investors think the financial market is a house of cards ready to collapse so they favor things like gold and precious metals.
- Deep Value Investors - these investors look for discounts in the market and a margin of safety by buying things that are inexpensive relative to their prior valuations or other companies.
- Indexers - these are the "set it and forget it" investors. They understand that it is very difficult to pick stocks and beat the market so they favor owning the market, or portions of the market.
- Growth Investors - these are the eternal optimists that believe in the revolutionary power of technology and disruption and typically don't care what the value of the company is today. All that matters is how fast it is growing and what kind of business it will be in 3-5 years.