Episode Details

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

• Join the exclusive TIP Mastermind Community to engage in meaningful stock investing discussions with Stig, Clay, and the other community members.
• 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.

NEW TO THE SHOW?

• Check out our We Study Billionaires Starter Packs.
• Browse through all our episodes (complete with transcripts) here