The Meb Faber Show - Better Investing · The Idea Farm

Cole Wilcox on The Power Law of Investing | #584

·1 hr 4 min·5 clips
Cole Wilcox explains how just 7% of trades account for all the profits in trend following strategies.
Meb Faber interviews Cole Wilcox about the power law in investing, focusing on trend following strategies for stocks. They discuss how a small percentage of trades drive most returns, the importance of risk management, and historical examples like Tesla and Bitcoin. The conversation highlights the behavioral challenges and tax efficiencies of systematic trend approaches.

As heard by us

A blunt look at trend following, diversification, and why good investing still loses often.

The conversation treats trend following as a discipline of survival, not heroics, and that is where it lands best. It pays attention to the parts investors often skip: losing trades, the reality that winning setups can be a minority, and the case for broad diversification when a…

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Why you'd press play

Hear how trend following survives by losing more often than it wins.

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