Meb Faber: Warren Buffett Didn't Follow His Own Advice | #631
While in Omaha for Berkshire week, Meb hopped on another podcast as a guest. It was a fun one, so we're releasing it here as well. In today's episode, Meb Faber makes the case against home country bias, pointing to Korea's near-triple and Japan's decades-long round trip as reminders that cycles always turn. He explains why shareholder yield tells a truer story than dividends, why there are now more ETFs than stocks, and why tax alpha matters more than chasing returns. To close, Meb reflects on multi-decade compounding — and the mistakes that quietly take investors out of the game.
Key Points
- The US stock market's long-term resilience and compounding are unmatched, but global diversification can reduce risk and capture growth opportunities from undervalued international markets.
- Shareholder yield, which includes dividends and stock buybacks, provides a more comprehensive view of a company's return of capital to shareholders compared to focusing solely on dividends.
- The importance of humility in investing is highlighted by the fact that even the best investors, like Warren Buffett, openly discuss their mistakes and the challenges they've faced.
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Transcript
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