How to Invest in a World of So Many Options

Why do very few of today's wealthiest families trace their fortune back to the magnates of 1900, despite the high investment returns since then?In this episode, Brian delves into wealth sustainability and financial decision-making with Victor Haghani, founder and CIO of Elm Wealth and co-author of "The Missing Billionaires: A Guide to Better Financial Decisions." He shares insights into why many fortunes don't survive across generations, highlighting the importance of smart investment strategies, risk management, and adaptable spending policies. Through an engaging conversation, listeners gain a deeper understanding of the empirical facts and strategic decisions crucial for long-term wealth preservation.[00:01 - 06:34] The Genesis of "The Missing Billionaires"How Victor identified a gap in the financial decision-making literatureThe surprising historical fade of wealth across generationsThe book's impact and relevance[06:35 - 12:16] Deciphering Wealth DissipationThe phenomenon of wealth not persisting across generationsRigid spending policies exacerbate financial vulnerability over timeThe role of risk management and spending policies in preserving wealth[12:17 - 17:59] Risk, Return, and Spending: The Critical TriadHow to diversify investments and avoid overly concentrated portfoliosThe danger of rigid spending policies and the need for adaptabilityA utility function to make informed risk-taking decisions[18:00 - 24:14] The Cultural Aspect of Financial DecisionsGenerational differences in approach to wealth can lead to its dissipationThe importance of entrepreneurial spirit in sustaining family wealthBalancing between growing and preserving wealth across generations[24:15 - 29:06] Future-Proofing Wealth: Strategies and ReflectionsThe importance of aligning investment strategies with personal and familial goalsPractical advice for those facing a liquidity event or starting a family officeThe societal implications of wealth accumulation and preservationKey Quotes:"Every author finds the motivation in feeling that there's a gap that's crying out to be filled." - Victor Haghani"The more risk that you take, the more that you're eating into your compound returns." - Victor HaghaniConnect with Victor!Website: www.elmwealth.com   LinkedIn: https://www.linkedin.com/in/victorhaghani This episode is sponsored by Mack International, a specialized executive search and human capital consulting firm serving the family office/wealth management markets. Please visit their website here for more information.Connect with me:https://www.linkedin.com/in/brian-c-adams/ (LinkedIn)LIKE, SUBSCRIBE, AND LEAVE US A REVIEW on Apple Podcasts, Spotify, Google Podcasts, or whatever platform you listen on. Thank you for tuning in and Stay Tuned for the Next Episode COMING SOON! Hosted on Acast. See acast.com/privacy for more information.