Common Sense Investing with Rick Ferri | The Benefits of a Simple Investment Approach
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- เผยแพร่เมื่อ 25 ก.ค. 2024
- In this episode of Excess Returns, we sit down with Rick Ferri to discuss a wide range of investing topics. We explore the concept of investing with simplicity, the importance of asset allocation, and the role of passive investing in today's market. Rick shares his insights on the stages investors go through to reach the point where simplicity is best, and how advisors can help clients gain buy-in for successful long-term investing. We also discuss Rick's thoughts on factor investing, ESG, and the key components of a successful retirement plan. Throughout the conversation, Rick emphasizes the importance of discipline, sticking to a strategy, and focusing on what you can control as an investor.
Our previous interview with Rick about how he constructs his personal portfolio
• Show Us Your Portfolio...
00:00 Introduction
02:30 Why investors tend to complicate their portfolios
04:55 The four stages of investing education
09:36 How the industry contributes to complexity in portfolios
13:15 Reacting to inflationary market regimes as an investor
17:04 The 60/40 portfolio and its effectiveness
22:11 The role of passive investing and its impact on the market
27:38 International diversification in portfolios
31:08 Factor investing and how average investors should approach it
39:18 ESG investing and its limitations
43:50 The importance of investors having input in their strategy
47:37 Key factors for a successful retirement
53:30 Concerns about the federal deficit and reasons for optimism
56:51 Closing thoughts
LEARN MORE ABOUT RICK
www.rickferri.com
SEE LATEST EPISODES
www.excessreturnspod.com
FIND OUT MORE ABOUT VALIDEA
www.validea.com
FIND OUT MORE ABOUT VALIDEA CAPITAL
www.valideacapital.com
FOLLOW JACK
Twitter: / practicalquant
LinkedIn: / jack-forehand-8015094
FOLLOW JUSTIN
Twitter: / jjcarbonneau
LinkedIn: / jcarbonneau
For anyone interested in our biggest takeaways from this episode, we put together an episode with our 9 biggest lessons th-cam.com/video/6rPTiOV7H38/w-d-xo.html
Common sense is more rare than you think.
It's time to replace legacy thinking with forward thinking and the ability to think outside the box. To do so, one must first understand for themselves that fiat systems are failures that always lead to corruption, manipulation, and deceit. Embrace a future where value is transparent, decentralized, and beyond the reach of those who seek to exploit it. Let's move beyond the broken models of the past and build a more equitable and resilient financial system.
They tried to drag him into saying something silly, but he was simply thorough and sensible. I would trust him and use him.
Solid interview. Thanks.
Thank you!
Thank you for this great interview. Very important to review regularly these concepts (Simplicity, Diversification, Low Cost and Rebalancing) in order to reinforce ourself against the huge noise generated by the “fees industry”.
Thank you for listening!
You're very welcome! It's indeed crucial to regularly review and reinforce foundational investment concepts like Simplicity, Diversification, Low Cost, and Rebalancing. These principles help navigate through the noise and complexities of the financial industry, ensuring a solid and resilient investment strategy over the long term.
Validia runs investment models based on the super-investors. Have you considered taking the top recommendation from each model in a blend model, keeping track of which model the recommendation came from removing it when the rules of the model it came from would remove the pick, replacing it from the top pick from the model to see if the blend does better than the individual models ?
I enjoy Rick, and the Boglehead's You Tube content, TREMENDOUSLY..the only minor "gripe" that I have about it, is that it seems rather clumsily configured. Sort of "ad-hoc". But, then again..maybe I just need to become smarter than the channel! But, the content is PURE GOLD.
We love having Rick on. Thank you for listening!
It's great to hear that you find Rick and the Boglehead's TH-cam content to be pure gold in terms of financial advice! Ad-hoc configurations can sometimes give a channel a more casual or unscripted feel, which may have its own charm but can also make it feel less structured.
Very good video. TY.
Thank you for listening!
Thank you for watching this episode. If you enjoyed it, you might also enjoy our previous interview with Rick where he explained how he manages his personal portfolio. You can find it here. th-cam.com/video/bjGaIw8n7Do/w-d-xo.html
Man this guy is really simple.
Liked it (thumbs up!) even though he took a jab at my Schwab Intelligent Portfolio. For my Roth IRA nothing about Schwab Intelligent Portfolio is complex - sure they hold 20 ETFs, but no taxable events in a Roth, they rebalance it for me, and even have a payout feature. And it's cheap too (15bps all in.) I kid you not, my main reason for buying this was for its overall "simplicity." No question, simpler than having to manually rebalance a "3 Fund Portfolio" then someday manually having to set up a retirement payment schedule. Anyway, I consider myself a Boglehead, but for whatever reason, they're a little slow to warm up to Roboadvisors, or most other new technologies. I hope they don't get stuck in time and gradually fade away into irrelevance with newer generations!
Schwab, Fidelity, etc. create complex portfolios to baffle clients so they keep them as advisers, wrongfully believing that investing is complicated and they have some sort of "secret sauce" to construct the ideal asset allocation. It's all marketing of course.
@@PassivePortfolios Im glad to see you had nothing substantive to say regarding anything that I said.
Rick, NVIDIA - pronounced ‘Envidia’ not ‘navidia
The best investment advice is the advice one would give to their own children. This is the acid test.
The advice that I would give to my children is "Do what Rick Ferri does, all else is BS"
Is he not wrong at 19:53....? I thought products like SPY are market cap-weighted. ?
He's is saying it's market cap weighted. Probably could have explained it better though.
VHAI is Mark Cuban looking to buy this an transform it 🚀🚀🚀🚀🚀🚀
Does that mean he owns Chinese stocks?
Your guest sounds great, but you sound like you're 2X'd.
The next apple…nvidia
You need a 50 ETF portfolio if you run a very leveraged portfolio. The more leveraged you get, the more diversified you need to be, especially under a Portfolio Margin account and/or SPAN margin account.
I agree
But Can you imagine an individual investor trying to do all that though? That would be almost a full-time job.😅
Every year someone comes along, writes a book, telling people to buy index funds, and it sells like hot cakes. Really? What am I missing. This was a total waste of time and replicates, exactly, Jack Bogle's advice and that of hundreds of other "me too" experts.
💰
"Indexing is not setting prices"...what a clown...how many names can you think of when they are either added or dropped from an index there is forced selling or buying that moves the price? More money in indexes, more forced sales or buys.