IN THIS EPISODE, YOU’LL LEARN:

• How Victor Haghani’s tumultuous family history shaped him.
• What he learned as a star trader on Salomon’s famed arbitrage desk.
• How he honed his skills by playing high-stakes games of Liar’s Poker.
• How Long-Term Capital Management hit the jackpot—for a while.
• How Russia’s default in 1998 sparked a cascading disaster.
• Why he defends the fund’s enormous appetite for leverage & risk.
• What he views as the real lessons of the fund’s collapse.
• How the concept of expected utility can improve our financial decisions.
• Why he fell out of love with exotica like private equity & hedge funds.
• What troubles him about the traditional, static approach to indexing.
• Why he favors a “dynamic asset allocation” based on risks & rewards.
• How his firm’s current allocations reflect a wary view of US equities.
• What he’s learned about overcoming adversity & finding happiness. 

Disclosure: This episode and the resources on this page are for informational and educational purposes only and do not constitute financial, investment, tax, or legal advice. For full disclosures, see link.

TRANSCRIPT

Disclaimer: The transcript that follows has been generated using artificial intelligence. We strive to be as accurate as possible, but minor errors and slightly off timestamps may be present due to platform differences.

[00:00:06] Intro: You’re listening to the Richer, Wiser, Happier Podcast, where your host, William Green, interviews the world’s greatest investors and explores how to win in markets and life. This show is not investment advice; it’s intended for informational and entertainment purposes only. All opinions expressed by hosts and guests are solely their own, and they may have investments in the securities discussed. Now for your host, William Green.

[00:00:40] William Green: Hi there, this is William Green, host of the Richer, Wiser, Happier podcast. Before I welcome today’s very special guest, I wanted to share some news that I’m really excited about. Later this year, I’ll launch a new Richer, Wiser, Happier Masterclass for a small, very intimate group of 22 people who’d like to study with me over the course of a year.

[00:01:02] William Green: We’ll meet once a month over Zoom to discuss the most important themes in my book, Richer, Wiser, Happier, and I’ll also talk about how my thinking on these subjects continues to evolve, drawing on lessons from hundreds of hours of interviews that I’ve conducted with many of the world’s greatest investors.

[00:01:17] William Green: Members of the Masterclass group will also be invited to join me at two unique in-person events, starting with a two-day gathering in New York later this fall. My goal in forming the Masterclass is to create a year-long journey of exploration for people who are deeply interested in building lives that are truly richer, wiser, and happier.

[00:01:37] William Green: If this idea appeals to you, please email my friend and fellow podcast host, Kyle Grieve, who’s in charge of the waitlist, and he can share details with you about prices and dates and the like. His email address is Kyle, that’s K-Y-L-E, kyle@theinvestorspodcast.com. I should also mention this will be the third year in a row that I’ve hosted a Richer, Wiser, Happier Masterclass.

[00:02:01] William Green: The first two groups included an amazingly accomplished selection of people from many countries around the world, including some hugely successful hedge fund and mutual fund managers, various asset allocators, wealth advisors, managers of family offices, a management consultant, a doctor, several CEOs and entrepreneurs, and a renowned physicist turned quant fund manager.

[00:02:25] William Green: Part of the beauty of the Masterclass lies in the very strong relationships forged between its members, many of whom have become really good friends. If you like the idea of studying with me and this extraordinary group of keen investors and passionate learners, please email Kyle at theinvestorspodcast.com. And if the stars align, I’d love to see you later this year when the Masterclass begins. Thanks so much. And now on with the show!

[00:02:51] William Green: Hi, folks. It’s a great pleasure to welcome today’s guest, Victor Haghani. Victor is the founder and chief investment officer of a firm called Elm Wealth, which he established, I think, in two thousand and eleven, and which manages billions of dollars in an extremely thoughtful way and at an exceptionally low cost.

[00:03:08] William Green: He’s also the co-author of a very thought-provoking book that I just finished reading last night titled The Missing Billionaires, which is a guide to making better financial decisions, and he’s authored a lot of academic papers about the art of investing. But that brief introduction doesn’t really begin to convey why I’m so excited to be chatting with Victor today.

[00:03:28] William Green: He’s an unusually brilliant thinker who has also had an astonishing range of experiences in his four decades or so as a professional investor. That includes the giddy highs and devastating lows of co-founding a famous hedge fund, Long-Term Capital Management, which racked up fabulous returns and then collapsed in nineteen ninety-eight.

[00:03:48] William Green: Since then, Victor has thought very deeply about what works and doesn’t work in investing, and I think we can all learn a great deal from his unusually rich and colorful journey, which has led him to a series of very important insights about how to build long-term wealth. So welcome, Victor. It’s lovely to see you. Thanks so much for joining us.

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BOOKS AND RESOURCES

• Inquire about William Green’s ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠Richer, Wiser, Happier Masterclass⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠.
• Victor Haghani’s investment firm, Elm Wealth.
• Victor Haghani & James White’s book “The Missing Billionaires.”
• Michael Lewis’ book, “Liar’s Poker.”
• Roger Lowenstein’s book, “When Genius Failed.”
• Daniel Gilbert’s book, “Stumbling on Happiness.”
• Viktor Frankl’s book, “Man’s Search for Meaning.”
• William Green’s book, “Richer, Wiser, Happier” – read the reviews of this book.
• Related ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠books⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠ mentioned in the podcast.
• Ad-free episodes on our ⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠Premium Feed⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠⁠.

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