people always say focus on your career, but I think financial literacy is even more important, I spend 6 months when i am first out of college to improve my financial literacy, its the best investment I had made
*Correction:* Please note that in the segment on FAANGs Gone Value starting around 35:50, the returns of stocks before and after becoming the largest stocks in the US market are stated as absolute returns, but they should have been stated as returns relative to the US market. Timestamps: 0:00 Intro 8:37 Expected Returns of Financial Literacy 35:47 Article: FAANGs Gone Value 40:34 Cameron's Book Recommendation
Thank you for the clarification! This makes the outperformance before joining the top 10 even more incredible. (It's too bad we can't consistently identify those companies ahead of time, but I guess if we could everyone would try to, which would defeat the point of doing this)
I was listening to you talk about the deleterious loss of boredom and solitude while on my evening walk. Made me feel guilty about not just walking in silence! In my youth that's what I'd do, these days a podcast really helps me get out the door.
What does all of this say about the financial literacy of the front runner for the leadership of the CPC given his advocacy of cryptocurrency? Or perhaps it says more about his level of cynicism.
Congratulations for the excellent work. Content of great value that are serving as inspiration to promote financial planning and investments in Brazil. Thanks! Hug from Brazil!
I think Ben’s idea of limiting his access to distractions on the phone is great. I’ve read psychology studies that basically say we have evolved to take the path of least resistance to reward, so if you simply remove the distractions you almost sort of “fall into” good habits and have far less screen time naturally, rather than relying upon strength of will to stop yourself. It’s like dieting advice: if you keep unhealthy food in your cupboards and fridge, it’s FAR easier to eat a poor diet. If you keep healthy food and fresh vegetables around you, even when you slip up and feel like snacking, at least you’re snacking on healthy foods and not a bag of chips.
I’ve heard them colloquially called “dumb phones” as opposed to smartphones, since all they can do is call and text (and maybe a few other things, calculator app etc.).
Re the older practice of putting the main topic later in the discussion, as a new sub to the channel, I found myself having to go back and check whether I actually clicked on the right video, since after some minutes the main topic still wasn't being discussed. Luckily the first few videos I had watched were of high enough (informational) quality that I persisted, otherwise I would have dismissed the channel as playing clickbait games with the video titles and never watched again. Another thing, the interview questions are good, and I'm sure the interviewees feel they are talking to knowledgeable interviewers rather than complete idiots who need to be baby-stepped through everything, however I feel there's often a poor transition from question to question. The interviewee will sometimes give an in-depth reply to a question, and then the following question is sometimes very disconnected from what was just said. That's okay for job interviews, but when sharing information is the goal, it makes the discussion feel disjointed. Also, in my sincerely humble opinion, it's not a good look to ask simpler questions later in the interview and questions involving more complex things at the beginning. I think there was one show I listened to where the question "what is money?" (with an implied stress on the IS) was asked rather late in the interview. That's a deeper question than it seems at first glance, but still, there had been a number of questions and answers already given which presumed at least a rough and ready economic (even philosophic) understanding of the money concept, so it felt rather awkward when the question was inserted later.
Given the statement about the top 10 companies having bad returns.... Wouldn't that be a reason to invest in an equal weighted index instead of market weighted?
No. Equal weights give you naive and uncontrolled exposure to smaller and lower priced companies. No good reason to do that when targeted and controlled tilts toward smaller, lower priced, higher profitability etc. companies are accessible. -Ben
@@rationalreminder gotcha... Tilt the overall exposure in a controlled manner, then you get to choose profitable small cap value instead of unprofitable as an example.
lol wow those questions.... For some reason the way you were hyping it up, I thought they were going to be extremely challenging. It's shocking to think that there's a significant portion of the population that can't answer even 3 of those.
In his book "Real Education," Charles Murray (by now of 'literally Hitler' infamy) tries to explain what 'below average' means by using an example of a multi-choice test question from the National Assessment of Education Progress (NAEP) exam. "There were 90 employees in the company last year. This year, the number of employees increased by 10 percent. How many employees are in the company this year?" 62% of 8th graders got it wrong. And when adjusting for those who got it right by guessing, the percentage rose to worse than random. I don't want to exaggerate how bad things are, since most students have a kind of 'natural' apathy towards math. As adults, however, if you promised to raise their wages by 10% and asked them to calculate how much they'd then be earning, they'd be interested enough that most of them would figure it out. (I hope!)
I'll share the link for people to learn. My last boss is the perfect example of someone who doesn't believe in diversification, worth $50 mill and owned his own company (very crafty and Lucky), 2 houses, a handful of penny lithium stocks and biotech stocks and that's it. I'll try to convince him but he is too stubborn. I need a way to break through.
@@davieb8216 Unless you know what someone's goals are, I don't think it's a good idea to say anything. If he's worth $50 million, then he doesn't need to 'slowly and steadily' accumulate wealth through diversification - he's already rich. Maybe he wants a shot at the moon. Unless, he's got his life's savings invested in those penny stocks, even if they sink beneath the sea, he'll still be rich.
@@danieltemelkovski9828 Yeah good point, he is aiming for the moon, with most of his portolfio is in those penny stocks (he will have massive liquidity problems). I still don't know if your comment checks out though, I thought diversification was the only free lunch? Why not diversify more and add more leverage? I suspose the distrubution of returns will be less lotto like with this method. Also I didn't mention above, that he was getting a lot of his employees (including me) to invest their money into these penny stocks to.
Olayemi Olurin @msolurin: "I hate how we push “financial literacy” programs on poor people. They’re not financially illiterate, they’re broke, be for real. There’s only so much managing and saving money you can do when you don’t have much." 60.8K likes
"You would think most of the listeners are financially literate." I'm here to prove you wrong.
people always say focus on your career, but I think financial literacy is even more important, I spend 6 months when i am first out of college to improve my financial literacy, its the best investment I had made
I just took accounting courses as electives IN college, though English was my major.
I really enjoyed this new format. I have always focused on the main topic and on Cameron's books recommendations.
*Correction:* Please note that in the segment on FAANGs Gone Value starting around 35:50, the returns of stocks before and after becoming the largest stocks in the US market are stated as absolute returns, but they should have been stated as returns relative to the US market.
Timestamps:
0:00 Intro
8:37 Expected Returns of Financial Literacy
35:47 Article: FAANGs Gone Value
40:34 Cameron's Book Recommendation
Thank you for the clarification!
This makes the outperformance before joining the top 10 even more incredible. (It's too bad we can't consistently identify those companies ahead of time, but I guess if we could everyone would try to, which would defeat the point of doing this)
I was listening to you talk about the deleterious loss of boredom and solitude while on my evening walk. Made me feel guilty about not just walking in silence! In my youth that's what I'd do, these days a podcast really helps me get out the door.
TH-cam much better because you can skip and share specific start times.
People with high confidence and low financial literacy are more likely to trade crypto. Who would’ve guessed
But surprising that they are also apparently “highly educated” (if I didn’t mishear).
@@conw_y highly educated in non-finance that is
Exit liquidity 😁
Thank you as always. Really appreciate you guys! (PS. Listened to the very end, love the new format!)
One of my favourite episodes! Such an important topic! ❤️👌🏼
What does all of this say about the financial literacy of the front runner for the leadership of the CPC given his advocacy of cryptocurrency? Or perhaps it says more about his level of cynicism.
Thanks for the great episode and making me feel smart 👨🎓
Congratulations for the excellent work. Content of great value that are serving as inspiration to promote financial planning and investments in Brazil. Thanks! Hug from Brazil!
I think Ben’s idea of limiting his access to distractions on the phone is great. I’ve read psychology studies that basically say we have evolved to take the path of least resistance to reward, so if you simply remove the distractions you almost sort of “fall into” good habits and have far less screen time naturally, rather than relying upon strength of will to stop yourself. It’s like dieting advice: if you keep unhealthy food in your cupboards and fridge, it’s FAR easier to eat a poor diet. If you keep healthy food and fresh vegetables around you, even when you slip up and feel like snacking, at least you’re snacking on healthy foods and not a bag of chips.
Liking the new structure!
No it is not only 3 people left at the end ;p
I’ve heard them colloquially called “dumb phones” as opposed to smartphones, since all they can do is call and text (and maybe a few other things, calculator app etc.).
Re the older practice of putting the main topic later in the discussion, as a new sub to the channel, I found myself having to go back and check whether I actually clicked on the right video, since after some minutes the main topic still wasn't being discussed. Luckily the first few videos I had watched were of high enough (informational) quality that I persisted, otherwise I would have dismissed the channel as playing clickbait games with the video titles and never watched again.
Another thing, the interview questions are good, and I'm sure the interviewees feel they are talking to knowledgeable interviewers rather than complete idiots who need to be baby-stepped through everything, however I feel there's often a poor transition from question to question. The interviewee will sometimes give an in-depth reply to a question, and then the following question is sometimes very disconnected from what was just said. That's okay for job interviews, but when sharing information is the goal, it makes the discussion feel disjointed.
Also, in my sincerely humble opinion, it's not a good look to ask simpler questions later in the interview and questions involving more complex things at the beginning. I think there was one show I listened to where the question "what is money?" (with an implied stress on the IS) was asked rather late in the interview. That's a deeper question than it seems at first glance, but still, there had been a number of questions and answers already given which presumed at least a rough and ready economic (even philosophic) understanding of the money concept, so it felt rather awkward when the question was inserted later.
19:45 Interesting that Dunning-Kruger manifests in this space.
ty
Given the statement about the top 10 companies having bad returns.... Wouldn't that be a reason to invest in an equal weighted index instead of market weighted?
No. Equal weights give you naive and uncontrolled exposure to smaller and lower priced companies. No good reason to do that when targeted and controlled tilts toward smaller, lower priced, higher profitability etc. companies are accessible.
-Ben
@@rationalreminder gotcha... Tilt the overall exposure in a controlled manner, then you get to choose profitable small cap value instead of unprofitable as an example.
I stayed to the end!😀
lol wow those questions.... For some reason the way you were hyping it up, I thought they were going to be extremely challenging. It's shocking to think that there's a significant portion of the population that can't answer even 3 of those.
In his book "Real Education," Charles Murray (by now of 'literally Hitler' infamy) tries to explain what 'below average' means by using an example of a multi-choice test question from the National Assessment of Education Progress (NAEP) exam. "There were 90 employees in the company last year. This year, the number of employees increased by 10 percent. How many employees are in the company this year?" 62% of 8th graders got it wrong. And when adjusting for those who got it right by guessing, the percentage rose to worse than random. I don't want to exaggerate how bad things are, since most students have a kind of 'natural' apathy towards math. As adults, however, if you promised to raise their wages by 10% and asked them to calculate how much they'd then be earning, they'd be interested enough that most of them would figure it out. (I hope!)
People on TH-cam are paying closer attention. Podcasts are for zoning out.
I'll share the link for people to learn. My last boss is the perfect example of someone who doesn't believe in diversification, worth $50 mill and owned his own company (very crafty and Lucky), 2 houses, a handful of penny lithium stocks and biotech stocks and that's it. I'll try to convince him but he is too stubborn. I need a way to break through.
@@davieb8216 Unless you know what someone's goals are, I don't think it's a good idea to say anything. If he's worth $50 million, then he doesn't need to 'slowly and steadily' accumulate wealth through diversification - he's already rich. Maybe he wants a shot at the moon. Unless, he's got his life's savings invested in those penny stocks, even if they sink beneath the sea, he'll still be rich.
@@danieltemelkovski9828 Yeah good point, he is aiming for the moon, with most of his portolfio is in those penny stocks (he will have massive liquidity problems). I still don't know if your comment checks out though, I thought diversification was the only free lunch? Why not diversify more and add more leverage? I suspose the distrubution of returns will be less lotto like with this method.
Also I didn't mention above, that he was getting a lot of his employees (including me) to invest their money into these penny stocks to.
Olayemi Olurin @msolurin: "I hate how we push “financial literacy” programs on poor people. They’re not financially illiterate, they’re broke, be for real. There’s only so much managing and saving money you can do when you don’t have much." 60.8K likes