Behind the Scenes of the Madoff Scandal with a Trader on the Inside | Andrew Cohen
In this episode of Excess Returns, Matt Zeigler sits down with Andrew Cohen, who shares his extraordinary journey from Goldman Sachs trader to working directly with Bernie Madoff and ultimately becoming a victim of history's largest Ponzi scheme. Now a respected finance professor, Cohen offers unique insights into Wall Street's trading culture, the shock of Madoff's fraud, and how he rebuilt his life in academia after losing almost everything.Topics Covered:Andrew's early career at Goldman Sachs and how basketball gambling on the trading floor taught him market-making skillsThe trading operations and technology at Bernard L. Madoff Investment Securities in the early 1990sWorking dynamics with Bernie Madoff's sons, Mark and Andy, and office politicsHow Andrew was invited to invest in Madoff's "exclusive" fundAndrew's decision to leave Wall Street at the height of his successThe devastating moment Andrew learned about Madoff's arrest and the Ponzi schemeThe additional ordeal of facing clawback lawsuits after losing his investmentTransitioning to academia and finding a more fulfilling career pathLessons for investors and finance students about risk, technology, and communication
--------
59:54
The Colossal Mistake | Richard Bernstein on the Risks of Tariffs and Passive Investing
Join hosts Matt Zeigler and Justin Carbonneau as they sit down with Richard Bernstein, CEO and Chief Investment Officer of Richard Bernstein Advisors. In this insightful conversation, Rich shares his expert perspective on today's market challenges, including the unprecedented narrowness of recent markets, the impact of tariffs on the US economy, and why the current environment calls for a shift toward value investing and greater diversification. Drawing on decades of experience, Bernstein offers practical wisdom for navigating today's uncertain investment landscape.Topics Covered:The difference between the 2008 financial crisis and today's economic challengesWhy 2023-2024 saw the most narrow stock market since the Great DepressionThe potential impact of tariffs as "the biggest tax on consumers in our professional careers"Why investors should err on the side of value over growth in the current marketHow US debt levels impact interest rates and economic competitivenessThe role of the Federal Reserve as a lagging rather than leading indicatorWhy gold serves as an effective hedge against uncertaintyBernstein's skeptical view on cryptocurrency and Bitcoin valuationThe limitations of index funds in today's market environmentTimeless advice for wealth building: stick to fundamentals and avoid "get rich quick" thinking
--------
55:20
The Secular Bull Market Isn't Dead: Jim Paulsen on Why Tariffs Won't Break It
In this episode of Excess Returns, we are joined by Jim Paulsen of Paulsen Perspectives. We unpack the complexities of tariffs, Federal Reserve policies, and investor psychology amidst a turbulent market environment. Jim brings his decades of experience to provide context, rational analysis, and long-term perspectives, steering clear of bold predictions and focusing instead on practical advice for navigating these uncertain times. Main Topics Covered:Jim’s perspective on market corrections and advice for investors during volatile periods, emphasizing emotional discipline and long-term thinking.The economic implications of tariffs, debunking the notion that they’re inflationary and exploring their contractionary effects.Critique of Federal Reserve policy, including their unprecedented actions and failure to ease despite market signals of deflation risk.Analysis of the U.S. dollar’s value and its impact on trade competitiveness, proposing a weaker dollar as an alternative to tariffs.The resilience of the private sector, bolstered by strong balance sheets and liquidity, as a buffer against recession fears.Thoughts on government debt, executive overreach, and Trump administration policies like deregulation and immigration.Investment strategies for the current environment.
--------
1:02:49
100 Baggers Leave Fingerprints | Chris Mayer Wrote the Book and Tells You How to Find Them
In this episode of Excess Returns, Matt Zeigler is joined by special co-host Bogumil Baranowski to sit down with Chris Mayer. As the author of the acclaimed book 100 Baggers: Stocks That Return 100-to-1 and How to Find Them, former editor of influential newsletters, and co-founder of Woodlock House Family Capital, Chris brings a wealth of experience and a unique perspective to the table. In this conversation, we dive deep into the world of long-term investing, exploring timeless principles, the impact of AI on future opportunities, and the mindset required to identify and hold onto extraordinary businesses. Whether you're a seasoned investor or just starting out, this episode is packed with wisdom to help you navigate the markets with patience and purpose.Main Topics Covered:The potential for 100-bagger stocks in emerging industries like AI and how time reveals the winners.The "twin engines" of growth and multiples, and why great businesses often trade at high valuations.The merits and challenges of concentrated investing in a market dominated by giants like the "Mag Seven."Strategies for dealing with drawdowns and maintaining conviction in great companies through volatility.The importance of aligning investment strategies with the right type of capital, especially for family wealth.How experiences as a banker, newsletter editor, and board member shape a business-owner mindset.The role of boards in capital allocation and setting incentives that drive long-term value.Insights from general semantics as a tool for critical thinking and avoiding investment pitfalls.The power of journaling to track evolving thoughts and foster humility in investing.Why patience is the ultimate lesson for investors and how to tune out market noise.
--------
1:01:50
The Fastest Market Selloff Since 2020: Rick Ferri on Tactics to Survive and Thrive
In this episode, we are joined by Rick Ferri, a renowned advocate for low-cost, evidence-based investing. With the market in the midst of a significant selloff, it was a great time to get Rick’s practical wisdom on navigating market volatility, maintaining simplicity in investing, and making informed portfolio decisions amidst economic uncertainty. With his disciplined approach and decades of experience, Rick shares actionable advice for investors looking to stay the course through today’s challenges. Whether you’re a seasoned investor or just starting out, this discussion offers valuable perspectives to help you achieve long-term financial success. Main Topics Covered:Strategies for handling market uncertainty and avoiding rash decisions during volatile times.The benefits of simplicity in investing and why the industry pushes complexity.Debunking the myth of the "dead" 60/40 portfolio and tailoring asset allocation to individual needs.Practical tips for sticking to your asset allocation through market ups and downs.How inflation impacts portfolios and why personal inflation rates matter.The case for international diversification and its long-term benefits.Thoughts on economic policies like tariffs and their potential effects on markets.Direct indexing: who it’s for, who it’s not for, and how it’s often oversold.Why active management struggles to outperform, despite persistent marketing efforts.Evaluating alternative investments like private credit and their risks.Addressing the "age in bonds" rule of thumb and its relevance for different investors.Questions to ask financial advisors to ensure you’re getting value for your fees.Rick’s evolution as an investor and the four stages to simplicity.An overview of the Core Four portfolio and its alignment with economic realities.Approaches to rebalancing and when to let asset allocations glide.Rick’s unique view on separating advisor fees for advice and asset management.
Excess Returns is dedicated to making you a better long-term investor and making complex investing topics understandable. Join Jack Forehand, Justin Carbonneau and Matt Zeigler as they sit down with some of the most interesting names in finance to discuss topics like macroeconomics, value investing, factor investing, and more. Subscribe to learn along with us.
Ireland