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Home > The Meb Faber Show > #120 - Radio Show - Our New Trinity ETF… Egregious Hedge Fund Fees… and R&D Spending is on the Rise
Podcast: The Meb Faber Show
Episode:

#120 - Radio Show - Our New Trinity ETF… Egregious Hedge Fund Fees… and R&D Spending is on the Rise
Category: Business
Duration: 00:32:09
Publish Date: 2018-09-05 12:00:00
Description:

Episode 120 has a radio show format. In this one, we cover numerous Tweets of the Week from Meb.

We start by announcing the arrival of our new Trinity ETF next week. We’re happy it will finally be available to the public. Then there’s discussion of Meb’s upcoming travel, which bleeds into a comment he made comparing crypto and airplane travel miles which, apparently, ruffled some feathers. We then touch on Amazon hitting a $1 trillion valuation.

Then, there’s a tweet from Ian Cassel, generally:

“Berkshire compounded at 20.2% from 1965-2010. If Berkshire was a 2 & 20 hedge fund it would have returned 13.5% net to investors vs 9.4% for the S&P.”

But the more interesting part was a follow-up tweet from Steve Burns:

“If you've invested $1,000 with Buffett in 1965, it would currently be worth $4.3 million.  However, if Berkshire had been a hedge fund charging 2 & 20, that $4.3 million would have accrued $300K to the investor with a stunning $4 million to the manager.”

This leads into a discussion of fees. We tie in a Tweet from Edmon Rakipi, which analyzes the average expense ratios for various mutual funds.

This dovetails into a discussion of asset allocation, fees, and tax alpha with the idea “does your allocation really matter all that much?”

We also touch on a Tweet reporting how corporate R&D expense is up (which doesn’t support the anti-buyback argument that buybacks starve R&D expenditures). Then there’s discuss of a new Wes Gray paper which highlights the conflict between longer-term returns and shorter-term performance.

Then a new "speed round" of listener questions from Twitter. 

All this and more in Episode 120.
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