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Far From The Finishing Post
Far From The Finishing Post explores the ideas and practices of leading investors in an effort to continuously grow our collective knowledge. This podcast is intended for UK listeners only. The views and information contained within this podcast do not constitute investment advice and should not be used as the basis for investment decisions. Any reference to securities should not be construed as a recommendation to buy or sell these securities. Any opinions expressed are those of the relevant individuals and do not necessarily reflect the views of Troy Asset Management and may be subject to change without notice. Past performance is not a guide to future performance and the value of an investment may fall as well as rise.
Far From The Finishing Post
Matthew McLennan (First Eagle) - Investing for Resilience
Matthew McLennan is co-head of First Eagle’s Global Value team and one of the portfolio managers of Global Value, a strategy that has delivered strong long-term compound returns. We discuss the importance of humility and patience, why resilience is emphasised throughout the portfolio, and how Global Value has survived and thrived across a broad range of market environments.
Show notes:
[01:24] How an unusual childhood informed Matt’s approach to investing
[03:52] Succeeding Jean-Marie Eveillard
[05:46] Continuous refinement of the investment kernel
[07:04] Successful succession planning
[09:45] Sustaining success over different market cycles
[12:15] Important character traits and attributes
[17:01] Impact of passive investing
[19:20] The benefits of having a Senior Advisor Board
[22:09] What value investing means to First Eagle
[26:38] Endogenous integrity with the capacity to suffer
[28:40] Discerning between secular change and noise
[33:44] Approach to asset allocation
[35:46] Benefits of owning gold
[37:45] Role of cash in the portfolio
[40:11] High valuations and prospective returns
[42:51] Gold miners vs bullion
[44:41] Understanding the process of growth and the role of endogenous confidence cycles