Meb Faber: Warren Buffett Didn't Follow His Own Advice | #631

Long-term wealth accumulation requires a disciplined, diversified approach that transcends home-country bias and emotional reactions to market volatility. While the S&P 500 has historically delivered strong returns, global diversification remains critical for managing risk and capturing growth across various capital markets. Investors should evaluate companies through the lens of shareholder yield, which accounts for both cash dividends and net stock buybacks, providing a more accurate measure of capital allocation than traditional dividend metrics. Bear markets function as a natural feature of creative destruction in capitalism, offering strategic opportunities for those with a long-term plan. Although the modern ETF landscape offers unprecedented access to diverse assets, investors must remain vigilant against high-fee products and the temptation of hyperactive trading, prioritizing tax efficiency and structural simplicity to ensure they remain in the game.