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If you\u2019re a factor-investor, Episode 23 is for you. In fact,\xa0about 10 years ago, Gregg actually trademarked the term \u201cmulti-factor\u201d in the use of mutual funds. Meb asks Greg which factors they use. It turns out \u201cprice-to-anything\u201d isn\u2019t bad. The conversation gravitates toward the behavioral side of investing, leading Gregg to an interesting comment: \u201cSometimes the best investment strategy isn\u2019t the right investment strategy.\u201d He goes on to illustrate by saying how if we bought nothing but small cap value stocks and held them for the next 50 years, we\u2019d look back and realize that such a strategy would have been one of the most successful ones anyone could have chosen. The problem is the volatility of that strategy is off the charts, so most investors can\u2019t see it through. In many ways, the experience of investing is as important to us as the outcome. Meb agrees, referencing a recent article detailing how Harvard\u2019s endowment has posted a small loss over the last two years and some folks at Harvard are finding this totally unacceptable. But that\u2019s to be expected with factor investing. As Gregg says, the whole concept of factor investing is to be different than the average investor. Next, Meb asks how to put together value and momentum. Turns out, there are lots of ways to slice this. Greg tells us to start with diversification, then differentiate across risk factors, tilting toward those factors that are well-rewarded for taking the risk. The guys then touch on factor investing in real estate, followed by top-down investing (Gregg doesn\u2019t really adhere to top-down), then they move on to losses. We all know this intuitively, but huge losses can scar people \u2013 even to the point they never come back. So one of the keys to avoiding this is diversification. This bleeds into the topic of written investment plans. Gregg agrees that nearly no one has a written plan (though it would be great if they did). There\u2019s far more, including currency hedging and smart beta factors. The episode winds down as Meb asks what advice Gregg might have for young investors who have only been exposed to the past 7 years of bull market. What\u2019s Greg\u2019s answer? Find out on Episode 23.\nLearn more about your ad choices. Visit megaphone.fm/adchoices