RWH067: Prudent Investing In Perilous Times w/ Matthew McLennan

In this three-part episode of *We Study Billionaires*, William Green sits down with Matthew McLennan, head of the global value team at First Eagle Investments and a central figure in Green’s book *Richer, Wiser, Happier*, to explore the principles of prudent investing in an era of escalating geopolitical and economic uncertainty. McLennan emphasizes that financial markets are inherently unpredictable and shaped by complex, non-linear forces—drawing parallels to historical crises like the 1970s oil shocks and Thucydides’ *History of the Peloponnesian War*. Rather than attempting to forecast crises, he advocates for proactive portfolio construction centered on resilience, safety, and margin of safety. Central to his philosophy is 'variegation'—intentional diversity across industries, geographies, and asset types—not mere statistical diversification. He positions gold as a 'positional asset' with enduring value during times of turmoil and underscores the importance of patience, humility, and long-term discipline in navigating volatile markets. The conversation also explores how adversity shapes wisdom, how non-investment pursuits like art, travel, and sports stimulate creativity and pattern recognition, and how a team culture built on shared curiosity, wonder, and intellectual diversity leads to superior decision-making. McLennan reflects on the transformative power of lifelong learning and the profound influence of mentors and books in shaping his worldview, culminating in a heartfelt appreciation for his collaboration with Green.