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The Quest for Resilient Wealth Creation

The Quest for Resilient Wealth Creation

The Resilient Investor w/ Matthew McLennan

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Matthew McLennan was recently featured on William Green's podcast: We Study Billionaires - The Investor’s Podcast Network. In their discussion we learn about Matt's long-spanning career from Goldman Sachs to becoming co-head of First Eagle's Global Value Team and explore how to achieve what Matt calls "resilient wealth creation."

This interview was recorded on August 30, 2022.

Unless otherwise stated, all information contained in this material is as of 30 August 2022.

The opinions expressed are not necessarily those of the firm. These materials are provided for informational purposes only. These opinions are not intended to be a forecast of future events, a guarantee of future results, or investment advice. Any statistics contained herein have been obtained from sources believed to be reliable, but the accuracy of this information cannot be guaranteed. The views expressed herein may change at any time subsequent to the date of issue hereof. The information provided is not to be construed as a recommendation to buy, hold or sell or the solicitation or an offer to buy or sell any fund or security.

Past performance is not indicative of future results.

Risk Disclosures

All investments involve the risk of loss of principal.

There are risks associated with investing in securities of foreign countries, such as erratic market conditions, economic and political instability and fluctuations in currency exchange rates.

A principal risk of investing in value stocks is that the price of the security may not approach its anticipated value or may decline in value. “Value” investments, as a category, or entire industries or sectors associated with such investments, may lose favor with investors as compared to those that are more “growth” oriented.

Indexes are unmanaged and one cannot invest directly in an index.

The MSCI World Index is a widely followed, unmanaged group of stocks from 23 international markets and is not available for purchase. The index provides total returns in US dollars with net dividends reinvested.

The MSCI EAFE Index is an unmanaged total return index, reported in U.S. dollars, based on share prices and reinvested net dividends of companies from 21 countries and is not available for purchase.

Diversification does not guarantee investment returns and does not eliminate the risk of loss.

Data sources:

“Over the last century, we've grown productivity close to 2% a year.” Haver/Bureau of Labor and Statistics

“… If you look at our portfolios we have roughly 20%, a combination of cash and gold, and diversified short term foreign sovereign bonds”. FactSet and First Eagle Investments Analysis in both the Global Value and International Value Strategy.

“I was looking at your portfolios, I think it's 7.2% turnover. One is 10%.” FactSet and First Eagle Investments Analysis in both the Global Value and International Value Strategy.

“… Shimano has over 50% of the market for high end bicycle brakes and gears” Company Reports

“… What's great about Shimano is the bicycle brakes and gears is the key part of the business, they're also big … the bicycle breaks and gears are 80% of their market, but the business has really compounded out at a high single digit clip over decades, because they've added more value to the bicycle brakes and gears.” Bloomberg

“…Over the last 20 years, they [Shimano] bought back about 40% of the stock they don't have any debt, they have net cash.” Bloomberg

“…T bills have compounded at about a 5% money supply in the US has grown at 6% and gold has compounded out at around 8%.” Haver/Federal Reserve Board and Treasury

“When we look at the world of equity markets, US equities, nearly 70% of the world equity index, but with 5% of the world's population.” MSCI Fact Sheet (, World Bank, Bloomberg, US Census Bureau

“The US Dollar makes up nearly 60% of world's currency reserves.” International Monetary Fund (IMF)

“…The US for all of its advantages runs a trade deficit in excess of 4% of GDP, which is expanding.” Bureau of Economic Analysis

“…The S&P trades just under 20 times the trailing 12 months of earnings whereas the stocks in the EAFE are more in the 12 to 13 range.” FactSet and First Eagle Investments Analysis

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