RWH071: Risk, Ruin, Reinvention & Resilience w/ Victor Haghani

**SPEAKER_1** (0:00)
You're listening to TIP.
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.

**William Green** (0:40)
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. 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.
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. 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, at theinvestorspodcast.com.
I should also mention, this will be the third year in a row that I've hosted a richer, wiser, happier masterclass. 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. 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.
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 2011, which manages billions of dollars in an extremely thoughtful way and at an exceptionally low cost. 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. 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 1998
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.

**Victor Haghani** (4:06)
Thank you so much. What a lovely introduction. Thank you, William.

**William Green** (4:09)
Hi, thanks. We'll see how it goes from here. But I'm really, really excited to see you.

**Victor Haghani** (4:15)
I hope that wasn't the high point.

**William Green** (4:17)
Yeah, from here on in, it's downhill.
I wanted to start by asking you about your family background and how it shaped the person you'd become. And I was struck when I read the dedication of your book to your family. You wrote to my mother and father Lucille and Musa for their love and for bringing me into the world at the best possible time. To my three children, Josh, Jess and Mark for giving meaning to everything I do. And to my wife, Celeste, for your love and boundless understanding. Can you start by telling us a little bit about your parents and also about what you mean when you said that they brought you into the world at the best possible time?