Hidden Forces

In Episode 360 of Hidden Forces, Demetri Kofinas speaks with Victor Haghani about his book “The Missing Billionaires” and what a growing body of literature has to say about sensible wealth management and how to invest for the long term. Haghani started his career at Salomon Brothers in 1984, where he became a Managing Director in the bond-arbitrage group, and in 1993, he was a co-founding partner of Long-Term Capital Management. He founded Elm Wealth in 2011 to help clients, including his own family, manage and preserve their wealth with a thoughtful, research-based, and cost-effective approach that covers not just investment management but also broader decisions about wealth and finances. In the episode’s first hour, Haghani explains his investment philosophy and his firm’s approach to portfolio construction and management, including core financial concepts central to his framework, like expected utility, lift vs. drag, standard deviation as a measure of risk, variance, the shape of return distributions, an