Long-term investing in America and the lessons history offers modern investors were the focus of this week’s ETF Prime. Host Nate Geraci welcomed Mebane Faber, founder and chief investment officer at Cambria Investment Management, to discuss his new book, “Investing in America: The Rise of a 250-Year Bull Market,” released July 4, 2026.
Key Takeaways:
- Faber’s book shows that $1 invested in America in 1800 would be worth $200 million today.
- Faber sees U.S. valuations near historic peaks and recommends rebalancing into global equities.
- Cambria has completed five Section 351 conversions, bringing in close to $1 billion in assets.
The book was born out of frustration with a generation that learned investing through meme stocks and zero-day options rather than structural ownership. Faber’s remedy is long-term compounding, illustrated by the idea that $1 invested in 1800 would be worth $200 million today. He cited Charlie Munger’s principle: “The first rule of compounding is don’t interrupt it unnecessarily.”
Faber also frames America’s origins as a venture capital story, noting that the Virginia Company and the Plymouth Colony’s Mayflower voyage were financed as joint-stock ventures by profit-seeking investors. Today, roughly 55% of American households own stock, and despite representing only 5% of the world’s population, the U.S. commands two-thirds of global stock market capitalization.
Market Valuations and the ETF Landscape
Faber was direct on valuations. The U.S. market trades at roughly 42 times its 10-year price-to-earnings ratio, near the second-highest level in history. Rather than exiting, he recommends systematically rebalancing into a global allocation. Most U.S. portfolios, he noted, sit at 80% to 100% in domestic equities.
See more: Market Valuation, Inflation and Treasury Yields: June 2026
Recent numbers make his case. Last year, while the S&P 500 returned 17%, Cambria’s foreign deep value fund gained more than 50%. This year, with the S&P up around 10%, foreign value has returned 15% to 20% and U.S. small-cap value has gained more than 20%. Faber called it “bull market diversification,” noting that most investors aren’t paying attention while domestic returns remain positive.
On the ETF side, Faber highlighted Cambria’s Section 351 conversion program, which allows investors to move concentrated stock positions into diversified ETFs without triggering capital gains. The firm has completed five conversions totaling close to $1 billion in assets, with another slated for this fall.
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