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 President of Pure Financial Advisors, Joe Anderson has led the company to achieve over $2 billion in assets under management and has grown their client base to over 2,160 in just ten years of the firm opening. When Joe began working with Pure Financial in 2008, they had almost no clients, negative revenue and no [...]

Alan Clopine

Alan Clopine is the CEO & CFO of Pure Financial Advisors. As CEO he currently leads Pure Financial Advisors along with our executive team. As CFO he is responsible for the financial operations of the company. Alan joined the firm about one year after it was established. At that time the company had less than [...]

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”