Larry Swedroe

Larry Swedroe is principal and director of research for Buckingham Asset Management, LLC, a Registered Investment Advisor firm in St. Louis, Mo. He is also principal of BAM Advisor Services, LLC, a service provider to investment advisors across the country, most of whom are affiliated with CPA firms. Swedroe's mission is to educate people on [...]


Joe Anderson
ABOUT Joseph

As CEO and President, Joe Anderson has created a unique, ambitious business model utilizing advanced service, training, sales, and marketing strategies to grow Pure Financial Advisors into the trustworthy, client-focused company it is today. Pure Financial, a Registered Investment Advisor (RIA), was ranked 15 out of 100 top ETF Power Users by RIA channel (2023), was [...]

Alan Clopine

Alan Clopine is the Executive Chairman of Pure Financial Advisors, LLC (Pure). He has been an executive leader of the Company for over a decade, including CFO, CEO, and Chairman. Alan joined the firm in 2008, about one year after it was established. In his tenure at Pure, the firm has grown from approximately $50 [...]

Published On
June 18, 2016

Financial expert Larry Swedroe joins the show to discuss active versus passive investing, comparing past performance numbers to illustrate which investment strategy has a more reliable outcome.

7:07 “The fact of the matter is, the most successful investors understand that markets will go down and they have a strategy of what they’re going to do when they go down”

8:16 Start of Interview with Larry Swedroe

9:13 “Let’s go over real quickly this active versus passive debate”

9:36 “He [Eugene Fama, Nobel Prize winner] defines ‘active’ as those who are engaged in individual stock selection and/or market timing”

12:13 “Any decision to own any asset allocation that’s different from the market is an active decision in terms of your strategy”

15:06 “You have to be prepared to accept long periods and stay the course”

16:36 “The market is getting smarter and it’s getting harder to outperform the market itself”

17:07 “Because the market and investors are getting more intelligent, do you think these risk premiums would ever go away?

22:34 “Ignore the ups and downs of the market, and if anything be a rebalancer which means you’re going to buy when everyone else is panic selling”

27:11 “People’s focus on dividends is a purely psychological one”

31:16 End of Interview with Larry Swedroe

33:18 “Another way to help with the overall volatility of the portfolio is looking at the taxation of the portfolio. You have three different pools…you want money in tax-free accounts, taxable accounts and tax-deferred accounts”

36:51 “If you can save more money in taxes then you can take less risk in the portfolio”