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”
Listen to the YMYW podcast:
Amazon Music
AntennaPod
Anytime Player
Apple Podcasts
Audible
Castbox
Castro
Curiocaster
Fountain
Goodpods
Google Podcasts
iHeartRadio
Apple iTunes
iVoox
Luminary
Overcast
Player FM
Pocket Casts
Podbean
Podcast Addict
Podcast Index
Podcast Guru
Podcast Republic
Podchaser
Podfriend
PodHero
Podknife
podStation
Podverse
Podvine
Radio Public
Rephonic
Sonnet
Spotify
Subscribe on Android
Subscribe by Email
RSS feed