The Meb Faber Show
MEBISODE: Even Berkshire Underperformed
The Meb Faber Show
•March 3, 2026•14 min
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The Meb Faber Show•Mar 3, 2026
Why It Matters
Understanding that even legendary managers experience periods of underperformance helps investors avoid premature exits and maintain conviction in solid strategies. By applying tools like rolling returns and valuation checks, listeners can better differentiate between a temporary rough patch and a fundamental flaw, a skill increasingly vital in today’s fast‑paced, short‑term‑focused market environment.
Key Takeaways
- •Berkshire underperformed 1999, then doubled while S&P flat
- •SYLD outperformed category in eight of twelve years since 2013
- •Rolling 5‑10 year returns show SYLD consistently beats peers
- •SYLD valuation multiples cheaper than Mid‑Value category and S&P
- •Patience required; short‑term underperformance often temporary for strong strategies
Pulse Analysis
The episode opens with a stark reminder of market timing pitfalls, using Warren Buffett’s retirement and Berkshire Hathaway’s 1999 dip as a cautionary tale. Despite a 20% decline that year, Berkshire rebounded spectacularly, more than doubling while the S&P 500 stagnated for a decade. Listeners are urged to recognize how fear of missing the "magic pullback" can cause investors to abandon high‑quality assets just as they become undervalued.
The conversation then shifts to Cambria’s Shareholder Yield ETF (ticker SYLD), highlighting its solid long‑term pedigree. Since its 2013 launch, SYLD has outperformed its Morningstar Mid‑Value category in eight of twelve full years, and rolling‑return analysis shows it beats peers across every 5‑ and 10‑year window. Although the fund slipped into the bottom 11% of its category in 2025 and posted consecutive underperformance in 2024‑25, valuation metrics—price‑to‑earnings, price‑to‑book, and cash‑flow multiples—remain well below both the category and the broader S&P 500, suggesting ample upside.
Finally, the hosts stress that short‑term drawdowns are a normal feature of durable investment processes. Drawing on Vanguard research and historical Berkshire data, they argue that a decade‑plus horizon dilutes randomness and reveals true strategy edges. Investors are encouraged to evaluate assets through multiple lenses—rolling returns, valuation, and category comparison—while maintaining discipline during uncomfortable periods. The episode concludes with a call to review the SYLD fact sheet and consider a long‑term, patient approach to wealth building.
Episode Description
In today’s episode, Meb reads a recent email sent to Cambria subscribers examining how to evaluate a strategy hitting a rough patch, using the
Cambria Shareholder Yield ETF (SYLD) as a case study.
Learn more:
Cambria Shareholder Yield ETF (SYLD) https://cambriafunds.com/syld
SYLD Fact Sheet https://cambriafunds.com/assets/docs/SYLD-FactSheet.pdf
SYLD Investment Case https://cambriafunds.com/assets/docs/SYLD_Investment_Case.pdf
Contact us at info@cambriainvestments.com, 310-683-5500
TO DETERMINE IF THE FUND IS AN APPROPRIATE INVESTMENT FOR YOU, CAREFULLY CONSIDER THE FUND’S INVESTMENT OBJECTIVES, RISK FACTORS, CHARGES AND EXPENSES BEFORE INVESTING. THIS AND OTHER INFORMATION CAN BE FOUND IN THE FUND’S PROSPECTUS WHICH MAY BE OBTAINED BY CALLING 855-383-4636 (ETF INFO) OR VISITING OUR WEBSITE AT WWW.CAMBRIAFUNDS.COM. READ THE PROSPECTUS CAREFULLY BEFORE INVESTING OR SENDING MONEY.
THE CAMBRIA ETFS ARE DISTRIBUTED BY ALPS DISTRIBUTORS INC., 1290 BROADWAY, SUITE 1000, DENVER, CO 80203, WHICH IS NOT AFFILIATED WITH CAMBRIA INVESTMENT MANAGEMENT, LP, THE INVESTMENT ADVISER FOR THE FUND.
INVESTING INVOLVES RISK, INCLUDING POTENTIAL LOSS OF CAPITAL.
SYLD: There is no guarantee that a Fund will achieve its investment goal. Investing involves risk, including the possible loss of principal. High yielding stocks are often speculative, high-risk investments. The underlying holdings of the Funds may be leveraged, which will expose the holding to higher volatility and may accelerate the impact of any losses. These companies can be paying out more than they can support and may reduce their dividends or stop paying dividends at any time, which could have a material adverse effect on the stock price of these companies and the Fund’s performance. International investing may involve risk of capital loss from unfavorable fluctuations in currency values, from differences in generally accepted accounting principles, or from economic or political instability in other nations. Emerging markets involve heightened risks related to the same factors as well as increased volatility and lower trading volume. Investments in smaller companies typically exhibit higher volatility. Narrowly focused funds typically exhibit higher volatility.
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Show Notes
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