Claude Erb - “It Is Possible That We're in the Middle of a Period in Which Gold Becomes the New Frankincense" | #80
In Episode 80, we welcome commodities and gold expert, Claude Erb. As usual, we start with Claude’s back-story, but it’s not long before the guys jump into investing, with Meb asking about Claude’s general framework and view of the markets. Claude tells us there are three concepts that guide his broad investing thinking: first, framing investment opportunities in terms of price/value relationships; second, the concept that no one gives away anything of value for free; and third, the idea that there really is no difference between a successful traditional fundamental approach to investing and a successful quantitative approach to investing.
Key Points
- Investing with a focus on price-value relationships is crucial, where an opportunity is considered attractive if it can be purchased for pennies on the dollar and unattractive if the purchase price is dollars on the penny.
- The sequence of returns is a critical issue for investors, particularly affecting those saving for retirement or spending down a portfolio, as the timing of returns can significantly impact the actual returns experienced by savers and spenders.
- Investors should be wary of the "commodity dividend yield" or roll yield when investing in commodity futures, as it can vary significantly and has the potential to be negative, meaning investors could be paying rather than receiving a yield.
Follow Claude: Website
Resources: The Golden Constant Abnormal Returns The Golden Dilemma National Income and Capital Formation A Real Bubble: Billionaire Warren Buffett Doubles Down on Bitcoin Doubt Facts and Fantasies about Commodity Futures The Strategic and Tactical Value of Commodity Futures This Time Is Different: Eight Centuries of Financial Folly Putting Momentum Into Commodities (Morningstar) 7 timeless investing lessons from Vanguard founder John Bogle The Little Book of Common Sense Investing: The Only Way to Guarantee Your Fair Share of Stock Market Returns Dalbar 2017: Investors Suck At Investing & Tips For Advisors How I Invest My Money (Updated With New Trade)
Chapters
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| 22:10 | |
| 29:26 | |
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| 41:27 | |
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| 1:02:21 | |
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Transcript
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