Thread by @MebFaber

1/ Ha, good to see I triggered so many people yesterday will how I invest my own money. The responses are funny...

https://twitter.com/MebFaber/status/1121162071935074304

For the new tweeps and followers, I've disclosed how I invest and my holdings for many years on the blog...a reminder for context...

1b/ Of course, this should really matter to nobody other than my wife and family.
But it's useful to walk through as there is so much taboo around money and how people invest.

It's probably the most personal question you could ask someone, how exactly do you invest your money?

1c/ Next time you sit down with your financial advisor or investment manager, maybe ask them "How specifically do you invest your own money. Will you show me your portfolio"?

This may make them uncomfortable. Many would probably balk. Forget on TV or publicly...

2/ The background inspiration was frustration with most public managers that have nothing invested in their own funds

via @RussKinnel

morningstar.com/products/pdf/M…

3/ I think it’s important that I have skin in the game. If I don’t believe in our funds enough to invest my own money here, why should anyone else? So for better or worse, I invest all of my public assets in funds I manage (except where I can't).

4/ However, the vast majority of my net worth, perhaps 80-99%, is concentrated in my asset management company Cambria. But let's ignore that and just focus on investable assets.

Half of portfolio is in private farmland in Kansas.

5/ Of the remaining half, nearly all is invested in our various Trinity strategies.

mebfaber.com/2018/10/01/why…

As a reminder, thats global allocations of stocks, bonds, real assets tilted to value and momentum. Half in buy and hold and half in trend.

6/ A smattering of accounts don't have access to our funds, so in those cases I just invest in what I consider to be the single best opportunity, and in the case of the 401k and 529, it's low cost index mutual funds (gasp!) focusing on emerging and foreign stocks.

6b/ (We'll probably do a longer piece and/or webinar on why I chose emerging markets, but have not penned that yet. Stay tuned)

7/ The remainder of assets are in some tail risk

cambriainvestments.com/wp-content/upl…

and some private and angel investment opportunities.

The angel investing we've talked a lot about on the podcast, and my journey there. I've invested in about 70 companies since 2014.

8/ My goals there since the beginning have been to learn the space with very small investments, and track and back kick ass founders. It's fun, it keeps me engaged and optimistic, and behaviorally fits since I'm locked in (and QSBS tax benefits)

9/ The goal is to break even with the S&P, anything above that is gravy, below that is ok as I see the cost as tuition. I still mark all the positions at cost until there is a liquidity event. There have been four so far, -100%, up 20%, up 30%, and up 200%.

10/ Due to nothing other than beginners luck, the very first investment on @AngelList is now a unicorn, but again I don't mark that until realized. But that already would return more than all the initial investments combined (jinx!).

Power laws at work.

11/ Anyways, this isn't advice, it's just documenting my plan and what is most important is you find a system and portfolio that works for you.

I plan on continuing to document the journey on the podcast, so for more in depth info you can tune in there...

12/ And thanks to @BrentBeshore I've opened my DMs, and so far y'all are behaving. But, people ask everyday so now it's not only in my bio but also now a pinned tweet, I don't (can't) talk specific funds here! Feel free to shoot me an email anytime...