What if the biggest edge in investing isn’t picking better assets—but structuring them better for taxes, incentives, and control? In this episode, I sit down with Michel, Founding CIO of a16z Perennial, to discuss how institutional investing frameworks translate to individual portfolios. Michel breaks down why most wealth management fails at true investment management, how misaligned incentives shape outcomes, and why scale, access, and structure matter more than traditional asset allocation. We also explore concentrated portfolios, tax alpha, and how psychology ultimately determines whether a strategy succeeds or fails.

Highlights:

Why wealth management and investment management are fundamentally different
How scale actually benefits LPs, not just GPs
What most investors misunderstand about diversification
Why a 90/10 portfolio may not be irrational for the right investor
How tax alpha can outperform investment alpha
The hidden cost of fund-of-funds and fee layering
Why access to top managers drives most institutional returns
How psychology, not strategy, determines long-term outcomes

Guest Bio:

Michel is the Chief Investment Officer at a16z Perennial, where he leads multi-asset portfolio construction for founders and large individual investors. Prior to a16z, he was CIO at Jordan Park, managing approximately $17 billion across global asset classes, and a Managing Director at Makena Capital Management. Earlier in his career, he worked at Scion Capital and McKinsey, and holds advanced degrees from Stanford and Cambridge, including a PhD in Management Science and Engineering as a DARPA fellow.

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We’d like to thank AlphaSense for sponsoring this episode!

Sponsor:

AlphaSense is the AI-powered market intelligence platform trusted by 85% of the S&P 100, helping investment professionals make faster, more confident, data-driven decisions. Built for hedge funds, asset allocators, private venture capital firms, and investment bankers, AlphaSense uses advanced AI and powerful search across premium proprietary content to surface the insights that matter most—before the market moves. Elevate your research and stay ahead of the competition. Visit https://www.alpha-sense.com/howiinvest/ to learn more.

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X/Twitter: @dweisburd LinkedIn: https://www.linkedin.com/in/dweisburd/ Weisburd Capital: https://www.weisburdcapital.com/

Stay Connected with Michel Del Buono:

LinkedIn: https://www.linkedin.com/in/mdelbuono/

Questions or topics you want us to discuss on How I Invest? Email us at david@weisburdcapital.com.

Disclaimer:

This podcast is for informational purposes only and does not constitute investment, financial, legal, or tax advice. Nothing in this episode should be interpreted as an offer to buy or sell any securities or to participate in any investment strategy. All opinions expressed by the host and guests are their own and do not represent the views of Weisburd Capital. Participants may hold positions or have financial interests in the companies, funds, or investments discussed. Any references to specific investments are for illustrative purposes only. Investing involves risk, including the potential loss of capital. Past performance is not indicative of future results, and any forward-looking statements are subject to risks and uncertainties. Any third-party data or opinions have not been independently verified. Listeners should conduct their own research and consult their own advisors before making any investment decisions.

(0:00) Why A16Z Built a Family Office (It Wasn’t for Wealth) (1:26) The Hidden Problem With Single Family Offices (4:51) Does Scale Help or Hurt Investment Returns? (6:49) The Incentive Problem That Breaks Wealth Management (9:06) Why Taxable Investors Are Suddenly So Important (11:15) The First Principles Behind Building a Modern Family Office (15:35) Why All Endowment Portfolios Look the Same (19:05) The “Crazy” Portfolio That Might Actually Be Rational (24:19) Why Investing Is More Psychology Than Strategy (36:53) The Easiest Alpha Most Investors Completely Ignore

E351: Why Most Family Offices Fail (And How a16z Fixed It)