What shapes investor beliefs and behaviours? Steve Utkus, a leading expert in investor behaviour and former Global Head of Investor and Retirement Research at Vanguard, brings decades of groundbreaking insights to this episode. Drawing on exclusive access to Vanguard’s anonymized client data and investor surveys, Steve uncovers the intricate links between what people believe and how they invest. In the first half, he reveals surprising findings from his research into investor beliefs and portfolio decisions. The second half dives into the impact of financial advisors, both human and robotic, on improving investor outcomes. Steve’s reflections, enriched by years of collaboration with academic leaders and personal conversations with Vanguard founder Jack Bogle, offer a rare window into the world of data-driven financial research. Join us today for this fascinating conversation as we unpack fresh perspectives on investor behaviour and the evolving role of financial advice! Key Points From This Episode:   (0:00:20) The importance of understanding investor belief, Steve’s unique approach to studying it, and the benefits of using survey data. (0:08:37) Understanding the effects of individual beliefs on portfolio equity shares. (0:13:40) How equity sensitivity varies with things like trading frequency and how observed sensitivity compares with predictions of an asset pricing model. (0:17:27) The variation of beliefs across different groups and the strong effect of being a pessimist, optimist, or having a middle-of-the-road perspective. (0:21:29) Investor cash flow expectations, how it affects stock return expectations, and how it aligns with models of equilibrium. (0:24:35) The impact of stock market disaster expectations on future stock returns and the effect of COVID-19 on investor expectations. (0:33:37) ESG investing motives, portfolio impact, and the role of financial returns. (0:38:35) Unpacking the impact of robo-advisors on previously DIY investors and who benefits. (0:45:21) Pros and cons of human financial advisors: the needs they satisfy over robo-advisors. (0:53:12) How unadvised investors' needs differ from those who get financial advice. (0:54:04) What determines how much value investors place on financial advice and how they think about the trade-offs between fees and the value of advice. (01:00:00) Reasons traditionally-advised people give for not switching to robo-advising. (01:03:15) Having a relationship with a good advisor: how it impacts investor behaviour through poor market performance periods, and the importance of frequent quality communication. (01:13:07) The key attributes of a high-retention advisor and what they should be focusing on. (01:19:02) Success, retirement, timing, and knowing when to leave, according to Steve.   Links From Today’s Episode: Meet with PWL Capital: <a href= "https://calendly.com/d/3vm-t2j-h3p">https://calendly.com/d/3vm-t2j-h3p</a> Rational Reminder on iTunes — <a href= "https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582?mt=2">https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582</a>. Rational Reminder Website — <a href= "https://rationalreminder.ca/">https://rationalreminder.ca/</a>  Rational Reminder on Instagram — <a href= "https://www.instagram.com/rationalreminder/">https://www.instagram.com/rationalreminder/</a> Rational Reminder on X — <a href= "https://x.com/RationalRemind">https://x.com/RationalRemind</a>Rational Reminder on TikTok — <a href= "https://www.tiktok.com/@rationalreminder?_t=8oTz7ldhMc1&_r=1&fbclid=IwZXh0bgNhZW0CMTAAAR1Z4A-2rKqQTivvuyU1-PssL9xfJn5myyaps6kQypAwHm7aL66qSajEhI0_aem_puLPWAK_S3Gk2bEmdXjohg">www.tiktok.com/@rationalreminder</a> Rational Reminder on YouTube — <a href= "https://www.youtube.com/channel/UCOErWFfNOQzXsgE7f5S_ULw">https://www.youtube.com/channel/</a> Rational Reminder Email — <a href= "mailto:info@rationalreminder.ca">info@rationalreminder.ca</a>Benjamin Felix — <a href= "https://pwlcapital.com/our-team/">https://pwlcapital.com/our-team/</a> Benjamin on X — <a href= "https://x.com/benjaminwfelix">https://x.com/benjaminwfelix</a> Benjamin on LinkedIn — <a href= "https://www.linkedin.com/in/benjaminwfelix/">https://www.linkedin.com/in/benjaminwfelix/</a> Cameron Passmore — <a href= "https://pwlcapital.com/our-team/">https://pwlcapital.com/our-team/</a> Cameron on X — <a href= "https://x.com/CameronPassmore">https://x.com/CameronPassmore</a> Cameron on LinkedIn — <a href= "https://www.linkedin.com/in/cameronpassmore/">https://www.linkedin.com/in/cameronpassmore/</a> Mark McGrath on LinkedIn — <a href= "https://www.linkedin.com/in/markmcgrathcfp/">https://www.linkedin.com/in/markmcgrathcfp/ </a>Mark McGrath on X — <a href= "https://x.com/MarkMcGrathCFP">https://x.com/MarkMcGrathCFP</a> Steve Utkus on LinkedIn — <a href= "https://www.linkedin.com/in/steveutkus/">https://www.linkedin.com/in/steveutkus/</a> Episode 278: Juhani Linnainmaa — <a href= "https://rationalreminder.ca/podcast/278">https://rationalreminder.ca/podcast/278</a>   Books From Today’s Episode: Bogle on Mutual Funds — <a href= "https://www.amazon.com/Bogle-Mutual-Funds-Perspectives-Intelligent/dp/111908833X"> https://www.amazon.com/Bogle-Mutual-Funds-Perspectives-Intelligent/dp/111908833X</a>   Papers From Today’s Episode:  ‘Political Cycles and Stock Returns’ — <a href= "https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2920401">https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2920401 </a>Scott Cederburg Paper — ‘The Diversification and Welfare Effects of Robo-advising’ — <a href= "https://www.sciencedirect.com/science/article/abs/pii/S0304405X24000928"> https://www.sciencedirect.com/science/article/abs/pii/S0304405X24000928</a> ‘Who Benefits from Robo-advising? Evidence from Machine Learning’ — <a href= "https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3552671">https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3552671</a> ‘Human Financial Advice in the Age of Automation’ — <a href= "https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4301514">https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4301514</a> ‘The Misguided Beliefs of Financial Advisors’ — <a href= "https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3101426">https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3101426</a>

<description>&lt;p dir="ltr"&gt;What shapes investor beliefs and behaviours? Steve Utkus, a leading expert in investor behaviour and former Global Head of Investor and Retirement Research at Vanguard, brings decades of groundbreaking insights to this episode. Drawing on exclusive access to Vanguard’s anonymized client data and investor surveys, Steve uncovers the intricate links between what people believe and how they invest. In the first half, he reveals surprising findings from his research into investor beliefs and portfolio decisions. The second half dives into the impact of financial advisors, both human and robotic, on improving investor outcomes. Steve’s reflections, enriched by years of collaboration with academic leaders and personal conversations with Vanguard founder Jack Bogle, offer a rare window into the world of data-driven financial research. Join us today for this fascinating conversation as we unpack fresh perspectives on investor behaviour and the evolving role of financial advice!&lt;br /&gt; &lt;br /&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;strong&gt;Key Points From This Episode:&lt;/strong&gt;&lt;/p&gt; &lt;p&gt;&lt;strong&gt; &lt;/strong&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;(0:00:20) The importance of understanding investor belief, Steve’s unique approach to studying it, and the benefits of using survey data.&lt;/p&gt; &lt;p dir="ltr"&gt;(0:08:37) Understanding the effects of individual beliefs on portfolio equity shares.&lt;/p&gt; &lt;p dir="ltr"&gt;(0:13:40) How equity sensitivity varies with things like trading frequency and how observed sensitivity compares with predictions of an asset pricing model.&lt;/p&gt; &lt;p dir="ltr"&gt;(0:17:27) The variation of beliefs across different groups and the strong effect of being a pessimist, optimist, or having a middle-of-the-road perspective.&lt;/p&gt; &lt;p dir="ltr"&gt;(0:21:29) Investor cash flow expectations, how it affects stock return expectations, and how it aligns with models of equilibrium.&lt;/p&gt; &lt;p dir="ltr"&gt;(0:24:35) The impact of stock market disaster expectations on future stock returns and the effect of COVID-19 on investor expectations.&lt;/p&gt; &lt;p dir="ltr"&gt;(0:33:37) ESG investing motives, portfolio impact, and the role of financial returns.&lt;/p&gt; &lt;p dir="ltr"&gt;(0:38:35) Unpacking the impact of robo-advisors on previously DIY investors and who benefits.&lt;/p&gt; &lt;p dir="ltr"&gt;(0:45:21) Pros and cons of human financial advisors: the needs they satisfy over robo-advisors.&lt;/p&gt; &lt;p dir="ltr"&gt;(0:53:12) How unadvised investors' needs differ from those who get financial advice.&lt;/p&gt; &lt;p dir="ltr"&gt;(0:54:04) What determines how much value investors place on financial advice and how they think about the trade-offs between fees and the value of advice.&lt;/p&gt; &lt;p dir="ltr"&gt;(01:00:00) Reasons traditionally-advised people give for not switching to robo-advising.&lt;/p&gt; &lt;p dir="ltr"&gt;(01:03:15) Having a relationship with a good advisor: how it impacts investor behaviour through poor market performance periods, and the importance of frequent quality communication.&lt;/p&gt; &lt;p dir="ltr"&gt;(01:13:07) The key attributes of a high-retention advisor and what they should be focusing on.&lt;/p&gt; &lt;p dir="ltr"&gt;(01:19:02) Success, retirement, timing, and knowing when to leave, according to Steve.&lt;/p&gt; &lt;p&gt;&lt;strong&gt; &lt;/strong&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;strong&gt;Links From Today’s Episode:&lt;/strong&gt;&lt;br /&gt; &lt;br /&gt; Meet with PWL Capital: &lt;a href= "https://calendly.com/d/3vm-t2j-h3p"&gt;https://calendly.com/d/3vm-t2j-h3p&lt;/a&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;Rational Reminder on iTunes — &lt;a href= "https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582?mt=2"&gt;https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582&lt;/a&gt;.&lt;br /&gt; Rational Reminder Website — &lt;a href= "https://rationalreminder.ca/"&gt;https://rationalreminder.ca/&lt;/a&gt; &lt;/p&gt; &lt;p dir="ltr"&gt;Rational Reminder on Instagram — &lt;a href= "https://www.instagram.com/rationalreminder/"&gt;https://www.instagram.com/rationalreminder/&lt;/a&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;Rational Reminder on X — &lt;a href= "https://x.com/RationalRemind"&gt;https://x.com/RationalRemind&lt;br /&gt;&lt;/a&gt;Rational Reminder on TikTok — &lt;a href= "https://www.tiktok.com/@rationalreminder?_t=8oTz7ldhMc1&amp;_r=1&amp;fbclid=IwZXh0bgNhZW0CMTAAAR1Z4A-2rKqQTivvuyU1-PssL9xfJn5myyaps6kQypAwHm7aL66qSajEhI0_aem_puLPWAK_S3Gk2bEmdXjohg"&gt;www.tiktok.com/@rationalreminder&lt;/a&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;Rational Reminder on YouTube — &lt;a href= "https://www.youtube.com/channel/UCOErWFfNOQzXsgE7f5S_ULw"&gt;https://www.youtube.com/channel/&lt;/a&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;Rational Reminder Email — &lt;a href= "mailto:info@rationalreminder.ca"&gt;info@rationalreminder.ca&lt;br /&gt;&lt;/a&gt;Benjamin Felix — &lt;a href= "https://pwlcapital.com/our-team/"&gt;https://pwlcapital.com/our-team/&lt;/a&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;Benjamin on X — &lt;a href= "https://x.com/benjaminwfelix"&gt;https://x.com/benjaminwfelix&lt;/a&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;Benjamin on LinkedIn — &lt;a href= "https://www.linkedin.com/in/benjaminwfelix/"&gt;https://www.linkedin.com/in/benjaminwfelix/&lt;/a&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;Cameron Passmore — &lt;a href= "https://pwlcapital.com/our-team/"&gt;https://pwlcapital.com/our-team/&lt;/a&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;Cameron on X — &lt;a href= "https://x.com/CameronPassmore"&gt;https://x.com/CameronPassmore&lt;/a&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;Cameron on LinkedIn — &lt;a href= "https://www.linkedin.com/in/cameronpassmore/"&gt;https://www.linkedin.com/in/cameronpassmore/&lt;/a&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;Mark McGrath on LinkedIn — &lt;a href= "https://www.linkedin.com/in/markmcgrathcfp/"&gt;https://www.linkedin.com/in/markmcgrathcfp/&lt;br /&gt; &lt;/a&gt;Mark McGrath on X — &lt;a href= "https://x.com/MarkMcGrathCFP"&gt;https://x.com/MarkMcGrathCFP&lt;/a&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;Steve Utkus on LinkedIn — &lt;a href= "https://www.linkedin.com/in/steveutkus/"&gt;https://www.linkedin.com/in/steveutkus/&lt;/a&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;Episode 278: Juhani Linnainmaa — &lt;a href= "https://rationalreminder.ca/podcast/278"&gt;https://rationalreminder.ca/podcast/278&lt;/a&gt;&lt;/p&gt; &lt;p&gt;&lt;strong&gt; &lt;/strong&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;strong&gt;Books From Today’s Episode:&lt;/strong&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;br /&gt; Bogle on Mutual Funds — &lt;a href= "https://www.amazon.com/Bogle-Mutual-Funds-Perspectives-Intelligent/dp/111908833X"&gt; https://www.amazon.com/Bogle-Mutual-Funds-Perspectives-Intelligent/dp/111908833X&lt;/a&gt;&lt;/p&gt; &lt;p&gt;&lt;strong&gt; &lt;/strong&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;strong&gt;Papers From Today’s Episode: &lt;/strong&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;br /&gt; ‘Political Cycles and Stock Returns’ — &lt;a href= "https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2920401"&gt;https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2920401&lt;br /&gt; &lt;/a&gt;Scott Cederburg Paper —&lt;br /&gt; ‘The Diversification and Welfare Effects of Robo-advising’ — &lt;a href= "https://www.sciencedirect.com/science/article/abs/pii/S0304405X24000928"&gt; https://www.sciencedirect.com/science/article/abs/pii/S0304405X24000928&lt;/a&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;‘Who Benefits from Robo-advising? Evidence from Machine Learning’ — &lt;a href= "https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3552671"&gt;https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3552671&lt;/a&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;‘Human Financial Advice in the Age of Automation’ — &lt;a href= "https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4301514"&gt;https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4301514&lt;/a&gt;&lt;/p&gt; &lt;p&gt;‘The Misguided Beliefs of Financial Advisors’ — &lt;a href= "https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3101426"&gt;https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3101426&lt;/a&gt;&lt;/p&gt;</description>

What shapes investor beliefs and behaviours? Steve Utkus, a leading expert in investor behaviour and former Global Head of Investor and Retirement Research at Vanguard, brings decades of groundbreaking insights to this episode. Drawing on exclusive...

Episode 336 - Steve Utkus: Investor Beliefs and Financial Advice

What makes Warren Buffett’s investment legacy so iconic, and how has his advice shaped the world of investing? In this episode, we delve into Warren Buffet's investment philosophy and the lessons he offers everyday investors. In our conversation, we unpack the impact of his investment strategies on the financial world, debunk common misconceptions, and discuss how his strategies have changed over time. We also examine the structural barriers to replicating his success, the complexities of scale and changing market dynamics, and the parallels between his approach and modern asset pricing models. Discover Warren Buffett’s astonishing historical returns, his perspectives on diminishing returns for active managers, and the misunderstood nuances of his advice regarding index funds. Gain insight into academic research on Warren Buffett’s success, his pragmatic view on cash holdings, and his opinion on the value of dividends for investors. Tune in to learn about the world's greatest investor and how you can apply his wisdom to your own portfolio!   Key Points From This Episode:   (0:04:55) Warren Buffett’s legacy and Berkshire Hathaway's performance history. (0:13:04) The problem of diminishing returns to scale and finding skilled active managers. (0:18:37) Reasons Buffett repeatedly advises most investors to choose low-cost index funds.  (0:23:14) Why identifying skilled managers before they outperform the market is impossible. (0:30:15) Research explaining Buffett's success using multi-factor asset pricing models. (0:35:30) Insight into why Berkshire Hathaway holds large cash reserves as part of its strategy. (0:44:02) Buffett’s views on dividends and why his focus remains on reinvestment. (0:48:16) Why diversification concentration is a bad strategy and Buffett's investing superpower. (0:57:07) Aftershow: Ben’s experience of being on The Wealthy Barber podcast. (0:58:07) Reviews and feedback from the episode with Randolph Cohen and Michael Green. (1:04:58) Changes to our year-end episode format and what listeners can expect.   Links From Today’s Episode: Meet with PWL Capital: <a href= "https://calendly.com/d/3vm-t2j-h3p">https://calendly.com/d/3vm-t2j-h3p</a> Rational Reminder on iTunes — <a href= "https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582?mt=2">https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582</a>. Rational Reminder Website — <a href= "https://rationalreminder.ca/">https://rationalreminder.ca/</a>  Rational Reminder on Instagram — <a href= "https://www.instagram.com/rationalreminder/">https://www.instagram.com/rationalreminder/</a> Rational Reminder on X — <a href= "https://x.com/RationalRemind">https://x.com/RationalRemind</a>Rational Reminder on TikTok — <a href= "https://www.tiktok.com/@rationalreminder?_t=8oTz7ldhMc1&_r=1&fbclid=IwZXh0bgNhZW0CMTAAAR1Z4A-2rKqQTivvuyU1-PssL9xfJn5myyaps6kQypAwHm7aL66qSajEhI0_aem_puLPWAK_S3Gk2bEmdXjohg">www.tiktok.com/@rationalreminder</a> Rational Reminder on YouTube — <a href= "https://www.youtube.com/channel/UCOErWFfNOQzXsgE7f5S_ULw">https://www.youtube.com/channel/</a> Rational Reminder Email — <a href= "mailto:info@rationalreminder.ca">info@rationalreminder.ca</a>Benjamin Felix — <a href= "https://pwlcapital.com/our-team/">https://pwlcapital.com/our-team/</a> Benjamin on X — <a href= "https://x.com/benjaminwfelix">https://x.com/benjaminwfelix</a> Benjamin on LinkedIn — <a href= "https://www.linkedin.com/in/benjaminwfelix/">https://www.linkedin.com/in/benjaminwfelix/</a> Mark McGrath on LinkedIn — <a href= "https://www.linkedin.com/in/markmcgrathcfp/">https://www.linkedin.com/in/markmcgrathcfp/ </a>Mark McGrath on X — <a href= "https://x.com/MarkMcGrathCFP">https://x.com/MarkMcGrathCFP</a> Dan Bortolotti on LinkedIn — <a href= "https://www.linkedin.com/in/dan-bortolotti-8a482310/">https://www.linkedin.com/in/dan-bortolotti-8a482310/</a> CPP by the Fire — <a href= "https://pages.pwlcapital.com/webinar_cpp_by_the_fire">https://pages.pwlcapital.com/webinar_cpp_by_the_fire</a> Braden Warwick on LinkedIn — <a href= "https://linkedin.com/in/braden-warwick-a40b48a3/">https://linkedin.com/in/braden-warwick-a40b48a3/</a> PWL Capital CPP Tool — <a href= "https://research-tools.pwlcapital.com/research/cpp">https://research-tools.pwlcapital.com/research/cpp</a> Berkshire Hathaway — <a href= "https://berkshirehathaway.com/">https://berkshirehathaway.com/</a> Berkshire Hathaway Shareholder Letters — <a href= "https://berkshirehathaway.com/letters/letters.html">https://berkshirehathaway.com/letters/letters.html</a> Richard Ennis — <a href= "https://richardmennis.com/author/richard-m-ennis">https://richardmennis.com/author/richard-m-ennis</a> Home Trust — <a href= "https://hometrust.ca/">https://hometrust.ca/</a> Ben on The Wealthy Barber Podcast — <a href= "https://thewealthybarber.com/podcast/ben-felix-a-deep-dive-into-the-world-of-investing-twb-podcast-5/"> https://thewealthybarber.com/podcast/ben-felix-a-deep-dive-into-the-world-of-investing-twb-podcast-5/</a> Episode 61: Ted Seides — <a href= "https://rationalreminder.ca/podcast/61">https://rationalreminder.ca/podcast/61</a> Episode 220: Jonathan Berk and Jules van Binsbergen — <a href= "https://rationalreminder.ca/podcast/220">https://rationalreminder.ca/podcast/220</a> Episode 332 - Randolph Cohen & Michael Green — <a href= "https://rationalreminder.ca/podcast/332">https://rationalreminder.ca/podcast/332</a>   Books From Today’s Episode:   The Intelligent Investor — <a href= "https://amazon.com/Intelligent-Investor-Hardcover-Benjamin-Graham/dp/B0CBQ18KDB/"> https://amazon.com/dp/B0CBQ18KDB/</a>   Papers From Today’s Episode:    'Buffett’s Alpha' — <a href= "https://doi.org/10.2469/faj.v74.n4.3">https://doi.org/10.2469/faj.v74.n4.3</a> 'Mutual Fund Flows and Performance in Rational Markets'— <a href="https://journals.uchicago.edu/doi/abs/10.1086/424739">https://journals.uchicago.edu/doi/abs/10.1086/424739</a>

<description>&lt;p dir="ltr"&gt;What makes Warren Buffett’s investment legacy so iconic, and how has his advice shaped the world of investing? In this episode, we delve into Warren Buffet's investment philosophy and the lessons he offers everyday investors. In our conversation, we unpack the impact of his investment strategies on the financial world, debunk common misconceptions, and discuss how his strategies have changed over time. We also examine the structural barriers to replicating his success, the complexities of scale and changing market dynamics, and the parallels between his approach and modern asset pricing models. Discover Warren Buffett’s astonishing historical returns, his perspectives on diminishing returns for active managers, and the misunderstood nuances of his advice regarding index funds. Gain insight into academic research on Warren Buffett’s success, his pragmatic view on cash holdings, and his opinion on the value of dividends for investors. Tune in to learn about the world's greatest investor and how you can apply his wisdom to your own portfolio!&lt;/p&gt; &lt;p&gt;&lt;strong&gt; &lt;/strong&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;strong&gt;Key Points From This Episode:&lt;/strong&gt;&lt;/p&gt; &lt;p&gt;&lt;strong&gt; &lt;/strong&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;(0:04:55) Warren Buffett’s legacy and Berkshire Hathaway's performance history.&lt;/p&gt; &lt;p dir="ltr"&gt;(0:13:04) The problem of diminishing returns to scale and finding skilled active managers.&lt;/p&gt; &lt;p dir="ltr"&gt;(0:18:37) Reasons Buffett repeatedly advises most investors to choose low-cost index funds. &lt;/p&gt; &lt;p dir="ltr"&gt;(0:23:14) Why identifying skilled managers before they outperform the market is impossible.&lt;/p&gt; &lt;p dir="ltr"&gt;(0:30:15) Research explaining Buffett's success using multi-factor asset pricing models.&lt;/p&gt; &lt;p dir="ltr"&gt;(0:35:30) Insight into why Berkshire Hathaway holds large cash reserves as part of its strategy.&lt;/p&gt; &lt;p dir="ltr"&gt;(0:44:02) Buffett’s views on dividends and why his focus remains on reinvestment.&lt;/p&gt; &lt;p dir="ltr"&gt;(0:48:16) Why diversification concentration is a bad strategy and Buffett's investing superpower.&lt;/p&gt; &lt;p dir="ltr"&gt;(0:57:07) Aftershow: Ben’s experience of being on The Wealthy Barber podcast.&lt;/p&gt; &lt;p dir="ltr"&gt;(0:58:07) Reviews and feedback from the episode with Randolph Cohen and Michael Green.&lt;/p&gt; &lt;p dir="ltr"&gt;(1:04:58) Changes to our year-end episode format and what listeners can expect.&lt;/p&gt; &lt;p&gt;&lt;strong&gt; &lt;/strong&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;strong&gt;Links From Today’s Episode:&lt;/strong&gt;&lt;br /&gt; &lt;br /&gt; Meet with PWL Capital: &lt;a href= "https://calendly.com/d/3vm-t2j-h3p"&gt;https://calendly.com/d/3vm-t2j-h3p&lt;/a&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;Rational Reminder on iTunes — &lt;a href= "https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582?mt=2"&gt;https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582&lt;/a&gt;.&lt;br /&gt; Rational Reminder Website — &lt;a href= "https://rationalreminder.ca/"&gt;https://rationalreminder.ca/&lt;/a&gt; &lt;/p&gt; &lt;p dir="ltr"&gt;Rational Reminder on Instagram — &lt;a href= "https://www.instagram.com/rationalreminder/"&gt;https://www.instagram.com/rationalreminder/&lt;/a&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;Rational Reminder on X — &lt;a href= "https://x.com/RationalRemind"&gt;https://x.com/RationalRemind&lt;br /&gt;&lt;/a&gt;Rational Reminder on TikTok — &lt;a href= "https://www.tiktok.com/@rationalreminder?_t=8oTz7ldhMc1&amp;_r=1&amp;fbclid=IwZXh0bgNhZW0CMTAAAR1Z4A-2rKqQTivvuyU1-PssL9xfJn5myyaps6kQypAwHm7aL66qSajEhI0_aem_puLPWAK_S3Gk2bEmdXjohg"&gt;www.tiktok.com/@rationalreminder&lt;/a&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;Rational Reminder on YouTube — &lt;a href= "https://www.youtube.com/channel/UCOErWFfNOQzXsgE7f5S_ULw"&gt;https://www.youtube.com/channel/&lt;/a&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;Rational Reminder Email — &lt;a href= "mailto:info@rationalreminder.ca"&gt;info@rationalreminder.ca&lt;br /&gt;&lt;/a&gt;Benjamin Felix — &lt;a href= "https://pwlcapital.com/our-team/"&gt;https://pwlcapital.com/our-team/&lt;/a&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;Benjamin on X — &lt;a href= "https://x.com/benjaminwfelix"&gt;https://x.com/benjaminwfelix&lt;/a&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;Benjamin on LinkedIn — &lt;a href= "https://www.linkedin.com/in/benjaminwfelix/"&gt;https://www.linkedin.com/in/benjaminwfelix/&lt;/a&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;Mark McGrath on LinkedIn — &lt;a href= "https://www.linkedin.com/in/markmcgrathcfp/"&gt;https://www.linkedin.com/in/markmcgrathcfp/&lt;br /&gt; &lt;/a&gt;Mark McGrath on X — &lt;a href= "https://x.com/MarkMcGrathCFP"&gt;https://x.com/MarkMcGrathCFP&lt;/a&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;Dan Bortolotti on LinkedIn — &lt;a href= "https://www.linkedin.com/in/dan-bortolotti-8a482310/"&gt;https://www.linkedin.com/in/dan-bortolotti-8a482310/&lt;/a&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;CPP by the Fire — &lt;a href= "https://pages.pwlcapital.com/webinar_cpp_by_the_fire"&gt;https://pages.pwlcapital.com/webinar_cpp_by_the_fire&lt;/a&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;Braden Warwick on LinkedIn — &lt;a href= "https://linkedin.com/in/braden-warwick-a40b48a3/"&gt;https://linkedin.com/in/braden-warwick-a40b48a3/&lt;/a&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;PWL Capital CPP Tool — &lt;a href= "https://research-tools.pwlcapital.com/research/cpp"&gt;https://research-tools.pwlcapital.com/research/cpp&lt;/a&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;Berkshire Hathaway — &lt;a href= "https://berkshirehathaway.com/"&gt;https://berkshirehathaway.com/&lt;/a&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;Berkshire Hathaway Shareholder Letters — &lt;a href= "https://berkshirehathaway.com/letters/letters.html"&gt;https://berkshirehathaway.com/letters/letters.html&lt;/a&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;Richard Ennis — &lt;a href= "https://richardmennis.com/author/richard-m-ennis"&gt;https://richardmennis.com/author/richard-m-ennis&lt;/a&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;Home Trust — &lt;a href= "https://hometrust.ca/"&gt;https://hometrust.ca/&lt;/a&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;Ben on The Wealthy Barber Podcast — &lt;a href= "https://thewealthybarber.com/podcast/ben-felix-a-deep-dive-into-the-world-of-investing-twb-podcast-5/"&gt; https://thewealthybarber.com/podcast/ben-felix-a-deep-dive-into-the-world-of-investing-twb-podcast-5/&lt;/a&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;Episode 61: Ted Seides — &lt;a href= "https://rationalreminder.ca/podcast/61"&gt;https://rationalreminder.ca/podcast/61&lt;/a&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;Episode 220: Jonathan Berk and Jules van Binsbergen — &lt;a href= "https://rationalreminder.ca/podcast/220"&gt;https://rationalreminder.ca/podcast/220&lt;/a&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;Episode 332 - Randolph Cohen &amp; Michael Green — &lt;a href= "https://rationalreminder.ca/podcast/332"&gt;https://rationalreminder.ca/podcast/332&lt;/a&gt;&lt;/p&gt; &lt;p&gt;&lt;strong&gt; &lt;/strong&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;strong&gt;Books From Today’s Episode:&lt;/strong&gt;&lt;/p&gt; &lt;p&gt;&lt;strong&gt; &lt;/strong&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;The Intelligent Investor — &lt;a href= "https://amazon.com/Intelligent-Investor-Hardcover-Benjamin-Graham/dp/B0CBQ18KDB/"&gt; https://amazon.com/dp/B0CBQ18KDB/&lt;/a&gt;&lt;/p&gt; &lt;p&gt;&lt;strong&gt; &lt;/strong&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;strong&gt;Papers From Today’s Episode: &lt;/strong&gt;&lt;/p&gt; &lt;p&gt;&lt;strong&gt; &lt;/strong&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;'Buffett’s Alpha' — &lt;a href= "https://doi.org/10.2469/faj.v74.n4.3"&gt;https://doi.org/10.2469/faj.v74.n4.3&lt;/a&gt;&lt;/p&gt; &lt;p&gt;'Mutual Fund Flows and Performance in Rational Markets'— &lt;a href="https://journals.uchicago.edu/doi/abs/10.1086/424739"&gt;https://journals.uchicago.edu/doi/abs/10.1086/424739&lt;/a&gt;&lt;/p&gt;</description>

What makes Warren Buffett’s investment legacy so iconic, and how has his advice shaped the world of investing? In this episode, we delve into Warren Buffet's investment philosophy and the lessons he offers everyday investors. In our conversation, we...

Episode 335 - "What About Warren Buffett?"

How do you balance family values, evidence-based investing, and building long-term wealth? In this episode, we are joined by Magnus Reitan, CEO of Reitan Kapital, to discuss his evidence-based approach to wealth management. Reitan Kapital is a leading investment firm specializing in index fund strategies and innovative portfolio optimization techniques. Under his leadership, the firm has become a key player in the investment industry, known for its analytical approach and commitment to sustainable and effective financial solutions. In our conversation, we delve into the disciplined, evidence-based philosophy driving Reitan Kapital’s investment strategy, the importance of simplicity in managing wealth, and the lessons he’s learned as an investor and a leader. We also explore the nuances around managing family wealth, unpack the importance of aligning investment strategies with family and business goals, and uncover the influence of Norway’s Sovereign Wealth Fund on Reitan Kapital’s approach. Join us as we explore the intersection of finance, legacy, and innovation and learn why a low-cost, evidence-based investment strategy works with Magnus Reitan. Tune in now!   Key Points From This Episode:   (0:03:27) The Reitan family’s journey from a single grocery store to a multinational group. (0:04:20) How Reitan Kapital fits into the broader Reitan Group and how it started. (0:06:35) Discover how Reitan Kapital defines risk and the role of access liquidity.  (0:08:06) Magnus shares how he developed his personal investment philosophy. (0:09:33) Hear how his personal interest in finance led to founding Reitan Kapital. (0:11:24) Explore the differences between managing a business and a family portfolio. (0:12:26) Why the company chose to hire a CIO who was not part of the Reitan family. (0:13:59) Reitan Kapital’s values: long-term perspective, diversification, liquidity, and low costs. (0:17:37) Hear how the family decided on and agreed to the company's investment approach. (0:18:58) Asset allocation at Reitan Kapital and the reasons behind its approach. (0:21:50) Avoiding portfolio complexity and the benefits of evidence-based investing. (0:24:30) The influence of Norway’s Sovereign Wealth Fund on Reitan Kapital’s philosophy. (0:26:07) Sources of information for learning about portfolio management and financial markets. (0:27:00) Lessons and key takeaways from the recent Reitan Kapital investor conference. (0:29:38) He shares his definition of success and why passion is important.   Links From Today’s Episode: Meet with PWL Capital: <a href= "https://calendly.com/d/3vm-t2j-h3p">https://calendly.com/d/3vm-t2j-h3p</a> Rational Reminder on iTunes — <a href= "https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582?mt=2">https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582</a>. Rational Reminder Website — <a href= "https://rationalreminder.ca/">https://rationalreminder.ca/</a>  Rational Reminder on Instagram — <a href= "https://www.instagram.com/rationalreminder/">https://www.instagram.com/rationalreminder/</a> Rational Reminder on X — <a href= "https://x.com/RationalRemind">https://x.com/RationalRemind</a>Rational Reminder on TikTok — <a href= "https://www.tiktok.com/@rationalreminder?_t=8oTz7ldhMc1&_r=1&fbclid=IwZXh0bgNhZW0CMTAAAR1Z4A-2rKqQTivvuyU1-PssL9xfJn5myyaps6kQypAwHm7aL66qSajEhI0_aem_puLPWAK_S3Gk2bEmdXjohg">www.tiktok.com/@rationalreminder</a> Rational Reminder on YouTube — <a href= "https://www.youtube.com/channel/UCOErWFfNOQzXsgE7f5S_ULw">https://www.youtube.com/channel/</a> Rational Reminder Email — <a href= "mailto:info@rationalreminder.ca">info@rationalreminder.ca</a>Benjamin Felix — <a href= "https://pwlcapital.com/our-team/">https://pwlcapital.com/our-team/</a> Benjamin on X — <a href= "https://x.com/benjaminwfelix">https://x.com/benjaminwfelix</a> Benjamin on LinkedIn — <a href= "https://www.linkedin.com/in/benjaminwfelix/">https://www.linkedin.com/in/benjaminwfelix/</a> Cameron Passmore — <a href= "https://pwlcapital.com/our-team/">https://pwlcapital.com/our-team/</a> Cameron on X — <a href= "https://x.com/CameronPassmore">https://x.com/CameronPassmore</a> Cameron on LinkedIn — <a href= "https://www.linkedin.com/in/cameronpassmore/">https://www.linkedin.com/in/cameronpassmore/</a> Magnus Reitan on LinkedIn — <a href= "https://linkedin.com/in/magnus-reitan-3a6b90225/">https://linkedin.com/in/magnus-reitan-3a6b90225/</a> Reitan Kapital — <a href= "https://reitan.no/no/selskap/170/reitan-kapital">https://reitan.no/no/selskap/170/reitan-kapital</a> Reitan Retail — <a href= "https://reitanretail.no/en">https://reitanretail.no/en</a> Reitan Eiendom — <a href= "https://reitan.no/no/selskap/171/reitan-eiendom">https://reitan.no/no/selskap/171/reitan-eiendom</a> Episode 321: Evidence in Practice with Håkon Kavli — <a href= "https://rationalreminder.ca/podcast/321">https://rationalreminder.ca/podcast/321</a> Håkon Kavli on LinkedIn — <a href= "https://linkedin.com/in/haakonkavli/">https://linkedin.com/in/haakonkavli/</a> Sindre Drevland on LinkedIn — <a href= "https://linkedin.com/in/sindredrevland/">https://linkedin.com/in/sindredrevland/</a>

<description>&lt;p dir="ltr"&gt;How do you balance family values, evidence-based investing, and building long-term wealth? In this episode, we are joined by Magnus Reitan, CEO of Reitan Kapital, to discuss his evidence-based approach to wealth management. Reitan Kapital is a leading investment firm specializing in index fund strategies and innovative portfolio optimization techniques. Under his leadership, the firm has become a key player in the investment industry, known for its analytical approach and commitment to sustainable and effective financial solutions. In our conversation, we delve into the disciplined, evidence-based philosophy driving Reitan Kapital’s investment strategy, the importance of simplicity in managing wealth, and the lessons he’s learned as an investor and a leader. We also explore the nuances around managing family wealth, unpack the importance of aligning investment strategies with family and business goals, and uncover the influence of Norway’s Sovereign Wealth Fund on Reitan Kapital’s approach. Join us as we explore the intersection of finance, legacy, and innovation and learn why a low-cost, evidence-based investment strategy works with Magnus Reitan. Tune in now!&lt;/p&gt; &lt;p&gt;&lt;strong&gt; &lt;/strong&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;Key Points From This Episode:&lt;/p&gt; &lt;p&gt;&lt;strong&gt; &lt;/strong&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;(0:03:27) The Reitan family’s journey from a single grocery store to a multinational group.&lt;/p&gt; &lt;p dir="ltr"&gt;(0:04:20) How Reitan Kapital fits into the broader Reitan Group and how it started.&lt;/p&gt; &lt;p dir="ltr"&gt;(0:06:35) Discover how Reitan Kapital defines risk and the role of access liquidity. &lt;/p&gt; &lt;p dir="ltr"&gt;(0:08:06) Magnus shares how he developed his personal investment philosophy.&lt;/p&gt; &lt;p dir="ltr"&gt;(0:09:33) Hear how his personal interest in finance led to founding Reitan Kapital.&lt;/p&gt; &lt;p dir="ltr"&gt;(0:11:24) Explore the differences between managing a business and a family portfolio.&lt;/p&gt; &lt;p dir="ltr"&gt;(0:12:26) Why the company chose to hire a CIO who was not part of the Reitan family.&lt;/p&gt; &lt;p dir="ltr"&gt;(0:13:59) Reitan Kapital’s values: long-term perspective, diversification, liquidity, and low costs.&lt;/p&gt; &lt;p dir="ltr"&gt;(0:17:37) Hear how the family decided on and agreed to the company's investment approach.&lt;/p&gt; &lt;p dir="ltr"&gt;(0:18:58) Asset allocation at Reitan Kapital and the reasons behind its approach.&lt;/p&gt; &lt;p dir="ltr"&gt;(0:21:50) Avoiding portfolio complexity and the benefits of evidence-based investing.&lt;/p&gt; &lt;p dir="ltr"&gt;(0:24:30) The influence of Norway’s Sovereign Wealth Fund on Reitan Kapital’s philosophy.&lt;/p&gt; &lt;p dir="ltr"&gt;(0:26:07) Sources of information for learning about portfolio management and financial markets.&lt;/p&gt; &lt;p dir="ltr"&gt;(0:27:00) Lessons and key takeaways from the recent Reitan Kapital investor conference.&lt;/p&gt; &lt;p dir="ltr"&gt;(0:29:38) He shares his definition of success and why passion is important.&lt;/p&gt; &lt;p&gt;&lt;strong&gt; &lt;/strong&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;Links From Today’s Episode:&lt;br /&gt; &lt;br /&gt; Meet with PWL Capital: &lt;a href= "https://calendly.com/d/3vm-t2j-h3p"&gt;https://calendly.com/d/3vm-t2j-h3p&lt;/a&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;Rational Reminder on iTunes — &lt;a href= "https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582?mt=2"&gt;https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582&lt;/a&gt;.&lt;br /&gt; Rational Reminder Website — &lt;a href= "https://rationalreminder.ca/"&gt;https://rationalreminder.ca/&lt;/a&gt; &lt;/p&gt; &lt;p dir="ltr"&gt;Rational Reminder on Instagram — &lt;a href= "https://www.instagram.com/rationalreminder/"&gt;https://www.instagram.com/rationalreminder/&lt;/a&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;Rational Reminder on X — &lt;a href= "https://x.com/RationalRemind"&gt;https://x.com/RationalRemind&lt;br /&gt;&lt;/a&gt;Rational Reminder on TikTok — &lt;a href= "https://www.tiktok.com/@rationalreminder?_t=8oTz7ldhMc1&amp;_r=1&amp;fbclid=IwZXh0bgNhZW0CMTAAAR1Z4A-2rKqQTivvuyU1-PssL9xfJn5myyaps6kQypAwHm7aL66qSajEhI0_aem_puLPWAK_S3Gk2bEmdXjohg"&gt;www.tiktok.com/@rationalreminder&lt;/a&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;Rational Reminder on YouTube — &lt;a href= "https://www.youtube.com/channel/UCOErWFfNOQzXsgE7f5S_ULw"&gt;https://www.youtube.com/channel/&lt;/a&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;Rational Reminder Email — &lt;a href= "mailto:info@rationalreminder.ca"&gt;info@rationalreminder.ca&lt;br /&gt;&lt;/a&gt;Benjamin Felix — &lt;a href= "https://pwlcapital.com/our-team/"&gt;https://pwlcapital.com/our-team/&lt;/a&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;Benjamin on X — &lt;a href= "https://x.com/benjaminwfelix"&gt;https://x.com/benjaminwfelix&lt;/a&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;Benjamin on LinkedIn — &lt;a href= "https://www.linkedin.com/in/benjaminwfelix/"&gt;https://www.linkedin.com/in/benjaminwfelix/&lt;/a&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;Cameron Passmore — &lt;a href= "https://pwlcapital.com/our-team/"&gt;https://pwlcapital.com/our-team/&lt;/a&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;Cameron on X — &lt;a href= "https://x.com/CameronPassmore"&gt;https://x.com/CameronPassmore&lt;/a&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;Cameron on LinkedIn — &lt;a href= "https://www.linkedin.com/in/cameronpassmore/"&gt;https://www.linkedin.com/in/cameronpassmore/&lt;/a&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;Magnus Reitan on LinkedIn — &lt;a href= "https://linkedin.com/in/magnus-reitan-3a6b90225/"&gt;https://linkedin.com/in/magnus-reitan-3a6b90225/&lt;/a&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;Reitan Kapital — &lt;a href= "https://reitan.no/no/selskap/170/reitan-kapital"&gt;https://reitan.no/no/selskap/170/reitan-kapital&lt;/a&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;Reitan Retail — &lt;a href= "https://reitanretail.no/en"&gt;https://reitanretail.no/en&lt;/a&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;Reitan Eiendom — &lt;a href= "https://reitan.no/no/selskap/171/reitan-eiendom"&gt;https://reitan.no/no/selskap/171/reitan-eiendom&lt;/a&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;Episode 321: Evidence in Practice with Håkon Kavli — &lt;a href= "https://rationalreminder.ca/podcast/321"&gt;https://rationalreminder.ca/podcast/321&lt;/a&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;Håkon Kavli on LinkedIn — &lt;a href= "https://linkedin.com/in/haakonkavli/"&gt;https://linkedin.com/in/haakonkavli/&lt;/a&gt;&lt;/p&gt; &lt;p&gt;&lt;strong id= "docs-internal-guid-c93be6b4-7fff-410c-6bbc-7d20f6695abf"&gt;Sindre Drevland on LinkedIn — &lt;a href= "https://linkedin.com/in/sindredrevland/"&gt;https://linkedin.com/in/sindredrevland/&lt;/a&gt;&lt;/strong&gt;&lt;/p&gt;</description>

How do you balance family values, evidence-based investing, and building long-term wealth? In this episode, we are joined by Magnus Reitan, CEO of Reitan Kapital, to discuss his evidence-based approach to wealth management. Reitan Kapital is a leading...

Episode 334 - Magnus Reitan: Managing (Significant) Family Wealth

What does Trump’s re-election mean for the markets? In this episode, Ben and Mark explore The Presidential Puzzle, a phenomenon revealing that equity risk premiums have historically been higher under Democratic presidencies than Republican ones. With Trump returning to office as the 47th U.S. president, they examine how voter risk aversion shapes political outcomes and market expectations, offering surprising insights into this intriguing connection between politics and investing. They also delve into market timing pitfalls, the importance of diversification, and how financial advisors can help investors navigate emotionally charged decisions. To wrap up, Ben and Mark reflect on listener perspectives and explore the intriguing future of Bitcoin in finance. Tune in to learn what Trump’s win means for expected stock returns and more! Key Points From This Episode: (0:00:18) Mark and Ben’s experiences at the Physician Financial Independence Conference. (0:06:53) Republicans vs. Democrats: What the election results mean for the stock market. (0:09:09) The Presidential Puzzle and how belief informs asset choices among voters. (0:15:12) How risk aversion and the economy impact election outcomes and expected returns. (0:20:08) What investors should and should not do with this information. (0:24:38) The dangers of making financial decisions based on emotional predictions. (0:30:02) Unpacking the relationship between global risk aversion and U.S. presidencies. (0:31:20) Our aftershow segment: digging into recent reviews, the podcast topic puzzle, Ben’s recent trip to Boston, and Bitcoin.   Links From Today’s Episode: Meet with PWL Capital — <a href= "https://calendly.com/d/3vm-t2j-h3p">https://calendly.com/d/3vm-t2j-h3p</a> Rational Reminder on iTunes — <a href= "https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582?mt=2">https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582</a> Rational Reminder Website — <a href= "https://rationalreminder.ca/">https://rationalreminder.ca/</a>  Rational Reminder on Instagram — <a href= "https://www.instagram.com/rationalreminder/">https://www.instagram.com/rationalreminder/</a> Rational Reminder on X — <a href= "https://x.com/RationalRemind">https://x.com/RationalRemind</a> Rational Reminder on TikTok — <a href= "https://www.tiktok.com/@rationalreminder?_t=8oTz7ldhMc1&_r=1&fbclid=IwZXh0bgNhZW0CMTAAAR1Z4A-2rKqQTivvuyU1-PssL9xfJn5myyaps6kQypAwHm7aL66qSajEhI0_aem_puLPWAK_S3Gk2bEmdXjohg">www.tiktok.com/@rationalreminder</a> Rational Reminder on YouTube — <a href= "https://www.youtube.com/channel/UCOErWFfNOQzXsgE7f5S_ULw">https://www.youtube.com/channel/</a> Rational Reminder Email — <a href= "mailto:info@rationalreminder.ca">info@rationalreminder.ca</a> Benjamin Felix — <a href= "https://pwlcapital.com/our-team/">https://pwlcapital.com/our-team/</a> Benjamin on X — <a href= "https://x.com/benjaminwfelix">https://x.com/benjaminwfelix</a> Benjamin on LinkedIn — <a href= "https://www.linkedin.com/in/benjaminwfelix/">https://www.linkedin.com/in/benjaminwfelix/</a> Cameron Passmore — <a href= "https://pwlcapital.com/our-team/">https://pwlcapital.com/our-team/</a> Cameron on X — <a href= "https://x.com/CameronPassmore">https://x.com/CameronPassmore</a> Cameron on LinkedIn — <a href= "https://www.linkedin.com/in/cameronpassmore/">https://www.linkedin.com/in/cameronpassmore/</a> Mark McGrath on LinkedIn — <a href= "https://www.linkedin.com/in/markmcgrathcfp/">https://www.linkedin.com/in/markmcgrathcfp/</a> Mark McGrath on X — <a href= "https://x.com/MarkMcGrathCFP">https://x.com/MarkMcGrathCFP</a> Episode 217: The Expected Returns of Financial Literacy — <a href= "https://rationalreminder.ca/podcast/217">https://rationalreminder.ca/podcast/217</a> Episode 313: When Should You Hire a Financial Advisor? — <a href="https://rationalreminder.ca/podcast/313">https://rationalreminder.ca/podcast/313</a> Episode 124: Ľuboš Pástor — <a href= "https://rationalreminder.ca/podcast/124">https://rationalreminder.ca/podcast/124</a> Papers From Today’s Episode:  ‘Belief Disagreement and Portfolio Choice’ — <a href= "https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3934061">https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3934061</a> ‘Political Cycles and Stock Returns’ — <a href= "https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2920401">https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2920401</a> ‘The Presidential Puzzle: Political Cycles and the Stock Market’ — <a href= "https://www.jstor.org/stable/3648176">https://www.jstor.org/stable/3648176</a>

<description>&lt;p&gt;What does Trump’s re-election mean for the markets? In this episode, Ben and Mark explore The Presidential Puzzle, a phenomenon revealing that equity risk premiums have historically been higher under Democratic presidencies than Republican ones. With Trump returning to office as the 47th U.S. president, they examine how voter risk aversion shapes political outcomes and market expectations, offering surprising insights into this intriguing connection between politics and investing. They also delve into market timing pitfalls, the importance of diversification, and how financial advisors can help investors navigate emotionally charged decisions. To wrap up, Ben and Mark reflect on listener perspectives and explore the intriguing future of Bitcoin in finance. Tune in to learn what Trump’s win means for expected stock returns and more!&lt;/p&gt; &lt;p&gt;&lt;strong&gt;&lt;br /&gt; Key Points From This Episode:&lt;/strong&gt;&lt;/p&gt; &lt;p&gt;&lt;strong&gt;(0:00:18)&lt;/strong&gt; Mark and Ben’s experiences at the Physician Financial Independence Conference.&lt;/p&gt; &lt;p&gt;&lt;strong&gt;(0:06:53)&lt;/strong&gt; Republicans vs. Democrats: What the election results mean for the stock market.&lt;/p&gt; &lt;p&gt;&lt;strong&gt;(0:09:09)&lt;/strong&gt; The Presidential Puzzle and how belief informs asset choices among voters.&lt;/p&gt; &lt;p&gt;&lt;strong&gt;(0:15:12)&lt;/strong&gt; How risk aversion and the economy impact election outcomes and expected returns.&lt;/p&gt; &lt;p&gt;(&lt;strong&gt;0:20:08)&lt;/strong&gt; What investors should and should not do with this information.&lt;/p&gt; &lt;p&gt;&lt;strong&gt;(0:24:38)&lt;/strong&gt; The dangers of making financial decisions based on emotional predictions.&lt;/p&gt; &lt;p&gt;&lt;strong&gt;(0:30:02)&lt;/strong&gt; Unpacking the relationship between global risk aversion and U.S. presidencies.&lt;/p&gt; &lt;p&gt;&lt;strong&gt;(0:31:20)&lt;/strong&gt; Our aftershow segment: digging into recent reviews, the podcast topic puzzle, Ben’s recent trip to Boston, and Bitcoin.&lt;/p&gt; &lt;p&gt; &lt;/p&gt; &lt;p&gt;&lt;strong&gt;Links From Today’s Episode:&lt;/strong&gt;&lt;/p&gt; &lt;p&gt;&lt;br /&gt; Meet with PWL Capital — &lt;a href= "https://calendly.com/d/3vm-t2j-h3p"&gt;https://calendly.com/d/3vm-t2j-h3p&lt;/a&gt;&lt;/p&gt; &lt;p&gt;Rational Reminder on iTunes — &lt;a href= "https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582?mt=2"&gt;https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582&lt;/a&gt;&lt;br /&gt; Rational Reminder Website — &lt;a href= "https://rationalreminder.ca/"&gt;https://rationalreminder.ca/&lt;/a&gt;&lt;span class="Apple-converted-space"&gt; &lt;/span&gt;&lt;/p&gt; &lt;p&gt;Rational Reminder on Instagram — &lt;a href= "https://www.instagram.com/rationalreminder/"&gt;https://www.instagram.com/rationalreminder/&lt;/a&gt;&lt;/p&gt; &lt;p&gt;Rational Reminder on X — &lt;a href= "https://x.com/RationalRemind"&gt;https://x.com/RationalRemind&lt;/a&gt;&lt;br /&gt; Rational Reminder on TikTok — &lt;a href= "https://www.tiktok.com/@rationalreminder?_t=8oTz7ldhMc1&amp;_r=1&amp;fbclid=IwZXh0bgNhZW0CMTAAAR1Z4A-2rKqQTivvuyU1-PssL9xfJn5myyaps6kQypAwHm7aL66qSajEhI0_aem_puLPWAK_S3Gk2bEmdXjohg"&gt;www.tiktok.com/@rationalreminder&lt;/a&gt;&lt;/p&gt; &lt;p&gt;Rational Reminder on YouTube — &lt;a href= "https://www.youtube.com/channel/UCOErWFfNOQzXsgE7f5S_ULw"&gt;https://www.youtube.com/channel/&lt;/a&gt;&lt;/p&gt; &lt;p&gt;Rational Reminder Email — &lt;a href= "mailto:info@rationalreminder.ca"&gt;info@rationalreminder.ca&lt;/a&gt;&lt;br /&gt; Benjamin Felix — &lt;a href= "https://pwlcapital.com/our-team/"&gt;https://pwlcapital.com/our-team/&lt;/a&gt;&lt;/p&gt; &lt;p&gt;Benjamin on X — &lt;a href= "https://x.com/benjaminwfelix"&gt;https://x.com/benjaminwfelix&lt;/a&gt;&lt;/p&gt; &lt;p&gt;Benjamin on LinkedIn — &lt;a href= "https://www.linkedin.com/in/benjaminwfelix/"&gt;https://www.linkedin.com/in/benjaminwfelix/&lt;/a&gt;&lt;/p&gt; &lt;p&gt;Cameron Passmore — &lt;a href= "https://pwlcapital.com/our-team/"&gt;https://pwlcapital.com/our-team/&lt;/a&gt;&lt;/p&gt; &lt;p&gt;Cameron on X — &lt;a href= "https://x.com/CameronPassmore"&gt;https://x.com/CameronPassmore&lt;/a&gt;&lt;/p&gt; &lt;p&gt;Cameron on LinkedIn — &lt;a href= "https://www.linkedin.com/in/cameronpassmore/"&gt;https://www.linkedin.com/in/cameronpassmore/&lt;/a&gt;&lt;/p&gt; &lt;p&gt;Mark McGrath on LinkedIn — &lt;a href= "https://www.linkedin.com/in/markmcgrathcfp/"&gt;https://www.linkedin.com/in/markmcgrathcfp/&lt;/a&gt;&lt;br /&gt; Mark McGrath on X — &lt;a href= "https://x.com/MarkMcGrathCFP"&gt;https://x.com/MarkMcGrathCFP&lt;/a&gt;&lt;/p&gt; &lt;p&gt;Episode 217: The Expected Returns of Financial Literacy — &lt;a href= "https://rationalreminder.ca/podcast/217"&gt;https://rationalreminder.ca/podcast/217&lt;/a&gt;&lt;/p&gt; &lt;p&gt;Episode 313: When Should You Hire a Financial Advisor? — &lt;a href="https://rationalreminder.ca/podcast/313"&gt;https://rationalreminder.ca/podcast/313&lt;/a&gt;&lt;br /&gt; Episode 124: Ľuboš Pástor — &lt;a href= "https://rationalreminder.ca/podcast/124"&gt;https://rationalreminder.ca/podcast/124&lt;/a&gt;&lt;/p&gt; &lt;p&gt;&lt;strong&gt;&lt;br /&gt; Papers From Today’s Episode:&lt;span class= "Apple-converted-space"&gt; &lt;/span&gt;&lt;/strong&gt;&lt;/p&gt; &lt;p&gt;‘Belief Disagreement and Portfolio Choice’ — &lt;a href= "https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3934061"&gt;https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3934061&lt;/a&gt;&lt;/p&gt; &lt;p&gt;‘Political Cycles and Stock Returns’ — &lt;a href= "https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2920401"&gt;https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2920401&lt;/a&gt;&lt;/p&gt; &lt;p&gt;‘The Presidential Puzzle: Political Cycles and the Stock Market’ — &lt;a href= "https://www.jstor.org/stable/3648176"&gt;https://www.jstor.org/stable/3648176&lt;/a&gt;&lt;/p&gt;</description>

What does Trump’s re-election mean for the markets? In this episode, Ben and Mark explore The Presidential Puzzle, a phenomenon revealing that equity risk premiums have historically been higher under Democratic presidencies than Republican ones....

Episode 333 - The Presidential Puzzle: Trump's Win and Expected Stock Returns

Are index funds a silent disruptor? Or are the concerns overblown? In this grab-your-popcorn episode, Michael Green returns to the show after his previous appearance elicited a wave of compelling feedback from listeners. These included very smart individuals in academia and practice who were interested in hearing a counter perspective. Joining Michael today for a lively debate is Randolph Cohen, Senior Lecturer of Entrepreneurial Management in the Finance Unit at Harvard Business School. In our conversation, Michael shares his deep concerns about how index funds and target-date funds might be distorting financial markets, honing in on the tension between market efficiency and price elasticity. Randolph counters with an academically grounded perspective, drawing on his PhD and years of research and teaching at one of the world’s leading business schools. With Ben and Cameron moderating, the discussion explores both sides without reaching a definitive conclusion. Tune in to witness this spirited, nuanced exchange and decide where you stand! Key Points From This Episode:   (0:00:14) Introducing Michael Green, Randolph Cohen, and today’s topics of debate. (0:06:00) Defining passive investing, distinguishing between the two different meanings of “the rise of passive investing”, and how much of the market is currently held by passive investors. (0:12:53) Michael’s concerns with the high levels of passive investing and Randy’s response. (0:20:55) Addressing the proliferation of target-date funds and their use in different scenarios. (0:28:48) Debating risk in the market, raised valuations, and retirement savings diversification. (0:42:22) A breakdown of the biggest thing Michael and Randy disagree on: how passive investing is impacting stock market valuations. (0:57:06) Answering the question: does inelasticity rise with passive, and how does it shape the impact of active managers? (01:06:14) Unpacking whether the rise of passive has made the markets more efficient; an accompanying refresher on the two types of passive. (01:09:27) Reasons to doubt whether there really is a rise in both types of passive and the effect of the rise in mega firms. (01:19:16) The state of fundamental analysis in the current market and Michael’s response to a recent paper by Goldman Sachs attempting to isolate the component of passive. (01:23:30) Unpacking the cross-sectional impact on stock valuations from index investing and insights on the work of Valentine Haddad. (01:31:28) The implications of today’s subject matter for investors and what they should be doing with this information. (01:44:22) Reflection on why more experts don’t share Michael’s level of concern. (01:47:42) Randy’s takeaways from today’s conversation, why he still does not share Michael’s level of concern, and what he might be worried about.   Links From Today’s Episode: Meet with PWL Capital: <a href= "https://calendly.com/d/3vm-t2j-h3p">https://calendly.com/d/3vm-t2j-h3p</a> Rational Reminder on iTunes — <a href= "https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582?mt=2">https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582</a>. Rational Reminder Website — <a href= "https://rationalreminder.ca/">https://rationalreminder.ca/</a>  Rational Reminder on Instagram — <a href= "https://www.instagram.com/rationalreminder/">https://www.instagram.com/rationalreminder/</a> Rational Reminder on X — <a href= "https://x.com/RationalRemind">https://x.com/RationalRemind</a>Rational Reminder on TikTok — <a href= "https://www.tiktok.com/@rationalreminder?_t=8oTz7ldhMc1&_r=1&fbclid=IwZXh0bgNhZW0CMTAAAR1Z4A-2rKqQTivvuyU1-PssL9xfJn5myyaps6kQypAwHm7aL66qSajEhI0_aem_puLPWAK_S3Gk2bEmdXjohg">www.tiktok.com/@rationalreminder</a> Rational Reminder on YouTube — <a href= "https://www.youtube.com/channel/UCOErWFfNOQzXsgE7f5S_ULw">https://www.youtube.com/channel/</a> Rational Reminder Email — <a href= "mailto:info@rationalreminder.ca">info@rationalreminder.ca</a>Benjamin Felix — <a href= "https://pwlcapital.com/our-team/">https://pwlcapital.com/our-team/</a> Benjamin on X — <a href= "https://x.com/benjaminwfelix">https://x.com/benjaminwfelix</a> Benjamin on LinkedIn — <a href= "https://www.linkedin.com/in/benjaminwfelix/">https://www.linkedin.com/in/benjaminwfelix/</a> Cameron Passmore — <a href= "https://pwlcapital.com/our-team/">https://pwlcapital.com/our-team/</a> Cameron on X — <a href= "https://x.com/CameronPassmore">https://x.com/CameronPassmore</a> Cameron on LinkedIn — <a href= "https://www.linkedin.com/in/cameronpassmore/">https://www.linkedin.com/in/cameronpassmore/ </a>Michael Green on Substack — <a href= "https://substack.com/@michaelwgreen">https://substack.com/@michaelwgreen </a>Michael Green on LinkedIn — <a href= "https://www.linkedin.com/in/michael-green-9a15142/">https://www.linkedin.com/in/michael-green-9a15142/ </a>Michael Green on X — <a href= "https://twitter.com/profplum99">https://twitter.com/profplum99 </a>‘Yes, I give a fig… Thoughts on markets from Michael Green’ — <a href= "https://www.yesigiveafig.com/">https://www.yesigiveafig.com/</a> Randolph Cohen — <a href= "https://www.hbs.edu/faculty/Pages/profile.aspx?facId=6597">https://www.hbs.edu/faculty/Pages/profile.aspx?facId=6597</a> Randolph Cohen on LinkedIn — <a href= "https://www.linkedin.com/in/randy-cohen/">https://www.linkedin.com/in/randy-cohen/</a> Dangerous Visions Podcast — <a href= "https://podcasts.apple.com/us/podcast/dangerous-vision-with-randy-cohen/id1477519445"> https://podcasts.apple.com/us/podcast/dangerous-vision-with-randy-cohen/id1477519445</a> Episode 302: Michael Green — <a href= "https://rationalreminder.ca/podcast/302">https://rationalreminder.ca/podcast/302 </a>Episode 322: Marco Sammon — <a href= "https://rationalreminder.ca/podcast/322">https://rationalreminder.ca/podcast/322 </a>Episode 310: Antoinette Schoar — <a href= "https://rationalreminder.ca/podcast/310">https://rationalreminder.ca/podcast/310 </a>Episode 212: Ralph Koijen — <a href= "https://rationalreminder.ca/podcast/212">https://rationalreminder.ca/podcast/212 </a>Episode 314: Valentine Haddad — <a href= "https://rationalreminder.ca/podcast/314">https://rationalreminder.ca/podcast/314 </a>Episode 224: Scott Cederburg — <a href= "https://rationalreminder.ca/podcast/224">https://rationalreminder.ca/podcast/224 </a>Episode 284: Scott Cederburg — <a href= "https://rationalreminder.ca/podcast/284">https://rationalreminder.ca/podcast/284 </a>The Grossman - Stiglitz Paradox (feat. The Plain Bagel) — <a href= "https://www.youtube.com/watch?v=zoXMZxe8crI">https://www.youtube.com/watch?v=zoXMZxe8crI</a>   Books From Today’s Episode:   Irrational Exuberance — <a href= "https://www.amazon.com/Irrational-Exuberance-3rd-Robert-Shiller/dp/0691166269"> https://www.amazon.com/Irrational-Exuberance-3rd-Robert-Shiller/dp/0691166269</a>    Papers From Today’s Episode:    ‘The Disappearing Index Effect’ — <a href= "https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4294297">https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4294297</a> ‘Passive Investing and the Rise of Mega-Firms’ — <a href= "https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4851266">https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4851266</a> ‘Retail Financial Innovation and Stock Market Dynamics: The Case of Target Date Funds’ — <a href= "https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3723265">https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3723265</a> Valentine Haddad on Google Scholar — <a href= "https://scholar.google.com/citations?user=PlPjP48AAAAJ">https://scholar.google.com/citations?user=PlPjP48AAAAJ</a> ‘How Competitive is the Stock Market? Theory, Evidence from Portfolios, and Implications for the Rise of Passive Investing’ — <a href= "https://papers.ssrn.com/sol3/Papers.cfm?abstract_id=3821263">https://papers.ssrn.com/sol3/Papers.cfm?abstract_id=3821263</a> ‘Household Portfolios and Retirement Saving Over the Life Cycle’ — <a href= "https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4068063">https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4068063</a> ‘The equity premium: A puzzle’ — <a href= "https://www.sciencedirect.com/science/article/abs/pii/0304393285900613"> https://www.sciencedirect.com/science/article/abs/pii/0304393285900613 </a>‘In Search of the Origins of Financial Fluctuations: The Inelastic Markets Hypothesis’ — <a href= "https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3686935">https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3686935</a>

<description>&lt;p dir="ltr"&gt;Are index funds a silent disruptor? Or are the concerns overblown? In this grab-your-popcorn episode, Michael Green returns to the show after his previous appearance elicited a wave of compelling feedback from listeners. These included very smart individuals in academia and practice who were interested in hearing a counter perspective. Joining Michael today for a lively debate is Randolph Cohen, Senior Lecturer of Entrepreneurial Management in the Finance Unit at Harvard Business School. In our conversation, Michael shares his deep concerns about how index funds and target-date funds might be distorting financial markets, honing in on the tension between market efficiency and price elasticity. Randolph counters with an academically grounded perspective, drawing on his PhD and years of research and teaching at one of the world’s leading business schools. With Ben and Cameron moderating, the discussion explores both sides without reaching a definitive conclusion. Tune in to witness this spirited, nuanced exchange and decide where you stand!&lt;br /&gt; &lt;br /&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;strong&gt;Key Points From This Episode:&lt;/strong&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;strong&gt; &lt;/strong&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;(0:00:14) Introducing Michael Green, Randolph Cohen, and today’s topics of debate.&lt;/p&gt; &lt;p dir="ltr"&gt;(0:06:00) Defining passive investing, distinguishing between the two different meanings of “the rise of passive investing”, and how much of the market is currently held by passive investors.&lt;/p&gt; &lt;p dir="ltr"&gt;(0:12:53) Michael’s concerns with the high levels of passive investing and Randy’s response.&lt;/p&gt; &lt;p dir="ltr"&gt;(0:20:55) Addressing the proliferation of target-date funds and their use in different scenarios.&lt;/p&gt; &lt;p dir="ltr"&gt;(0:28:48) Debating risk in the market, raised valuations, and retirement savings diversification.&lt;/p&gt; &lt;p dir="ltr"&gt;(0:42:22) A breakdown of the biggest thing Michael and Randy disagree on: how passive investing is impacting stock market valuations.&lt;/p&gt; &lt;p dir="ltr"&gt;(0:57:06) Answering the question: does inelasticity rise with passive, and how does it shape the impact of active managers?&lt;/p&gt; &lt;p dir="ltr"&gt;(01:06:14) Unpacking whether the rise of passive has made the markets more efficient; an accompanying refresher on the two types of passive.&lt;/p&gt; &lt;p dir="ltr"&gt;(01:09:27) Reasons to doubt whether there really is a rise in both types of passive and the effect of the rise in mega firms.&lt;/p&gt; &lt;p dir="ltr"&gt;(01:19:16) The state of fundamental analysis in the current market and Michael’s response to a recent paper by Goldman Sachs attempting to isolate the component of passive.&lt;/p&gt; &lt;p dir="ltr"&gt;(01:23:30) Unpacking the cross-sectional impact on stock valuations from index investing and insights on the work of Valentine Haddad.&lt;/p&gt; &lt;p dir="ltr"&gt;(01:31:28) The implications of today’s subject matter for investors and what they should be doing with this information.&lt;/p&gt; &lt;p dir="ltr"&gt;(01:44:22) Reflection on why more experts don’t share Michael’s level of concern.&lt;/p&gt; &lt;p dir="ltr"&gt;(01:47:42) Randy’s takeaways from today’s conversation, why he still does not share Michael’s level of concern, and what he might be worried about.&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;strong&gt; &lt;/strong&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;strong&gt;Links From Today’s Episode:&lt;/strong&gt;&lt;br /&gt; &lt;br /&gt; Meet with PWL Capital: &lt;a href= "https://calendly.com/d/3vm-t2j-h3p"&gt;https://calendly.com/d/3vm-t2j-h3p&lt;/a&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;Rational Reminder on iTunes — &lt;a href= "https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582?mt=2"&gt;https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582&lt;/a&gt;.&lt;br /&gt; Rational Reminder Website — &lt;a href= "https://rationalreminder.ca/"&gt;https://rationalreminder.ca/&lt;/a&gt; &lt;/p&gt; &lt;p dir="ltr"&gt;Rational Reminder on Instagram — &lt;a href= "https://www.instagram.com/rationalreminder/"&gt;https://www.instagram.com/rationalreminder/&lt;/a&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;Rational Reminder on X — &lt;a href= "https://x.com/RationalRemind"&gt;https://x.com/RationalRemind&lt;br /&gt;&lt;/a&gt;Rational Reminder on TikTok — &lt;a href= "https://www.tiktok.com/@rationalreminder?_t=8oTz7ldhMc1&amp;_r=1&amp;fbclid=IwZXh0bgNhZW0CMTAAAR1Z4A-2rKqQTivvuyU1-PssL9xfJn5myyaps6kQypAwHm7aL66qSajEhI0_aem_puLPWAK_S3Gk2bEmdXjohg"&gt;www.tiktok.com/@rationalreminder&lt;/a&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;Rational Reminder on YouTube — &lt;a href= "https://www.youtube.com/channel/UCOErWFfNOQzXsgE7f5S_ULw"&gt;https://www.youtube.com/channel/&lt;/a&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;Rational Reminder Email — &lt;a href= "mailto:info@rationalreminder.ca"&gt;info@rationalreminder.ca&lt;br /&gt;&lt;/a&gt;Benjamin Felix — &lt;a href= "https://pwlcapital.com/our-team/"&gt;https://pwlcapital.com/our-team/&lt;/a&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;Benjamin on X — &lt;a href= "https://x.com/benjaminwfelix"&gt;https://x.com/benjaminwfelix&lt;/a&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;Benjamin on LinkedIn — &lt;a href= "https://www.linkedin.com/in/benjaminwfelix/"&gt;https://www.linkedin.com/in/benjaminwfelix/&lt;/a&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;Cameron Passmore — &lt;a href= "https://pwlcapital.com/our-team/"&gt;https://pwlcapital.com/our-team/&lt;/a&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;Cameron on X — &lt;a href= "https://x.com/CameronPassmore"&gt;https://x.com/CameronPassmore&lt;/a&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;Cameron on LinkedIn — &lt;a href= "https://www.linkedin.com/in/cameronpassmore/"&gt;https://www.linkedin.com/in/cameronpassmore/&lt;br /&gt; &lt;/a&gt;Michael Green on Substack — &lt;a href= "https://substack.com/@michaelwgreen"&gt;https://substack.com/@michaelwgreen&lt;br /&gt; &lt;/a&gt;Michael Green on LinkedIn — &lt;a href= "https://www.linkedin.com/in/michael-green-9a15142/"&gt;https://www.linkedin.com/in/michael-green-9a15142/&lt;br /&gt; &lt;/a&gt;Michael Green on X — &lt;a href= "https://twitter.com/profplum99"&gt;https://twitter.com/profplum99&lt;br /&gt; &lt;/a&gt;‘Yes, I give a fig… Thoughts on markets from Michael Green’ — &lt;a href= "https://www.yesigiveafig.com/"&gt;https://www.yesigiveafig.com/&lt;/a&gt; Randolph Cohen — &lt;a href= "https://www.hbs.edu/faculty/Pages/profile.aspx?facId=6597"&gt;https://www.hbs.edu/faculty/Pages/profile.aspx?facId=6597&lt;/a&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;Randolph Cohen on LinkedIn — &lt;a href= "https://www.linkedin.com/in/randy-cohen/"&gt;https://www.linkedin.com/in/randy-cohen/&lt;/a&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;Dangerous Visions Podcast — &lt;a href= "https://podcasts.apple.com/us/podcast/dangerous-vision-with-randy-cohen/id1477519445"&gt; https://podcasts.apple.com/us/podcast/dangerous-vision-with-randy-cohen/id1477519445&lt;/a&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;Episode 302: Michael Green — &lt;a href= "https://rationalreminder.ca/podcast/302"&gt;https://rationalreminder.ca/podcast/302&lt;br /&gt; &lt;/a&gt;Episode 322: Marco Sammon — &lt;a href= "https://rationalreminder.ca/podcast/322"&gt;https://rationalreminder.ca/podcast/322&lt;br /&gt; &lt;/a&gt;Episode 310: Antoinette Schoar — &lt;a href= "https://rationalreminder.ca/podcast/310"&gt;https://rationalreminder.ca/podcast/310&lt;br /&gt; &lt;/a&gt;Episode 212: Ralph Koijen — &lt;a href= "https://rationalreminder.ca/podcast/212"&gt;https://rationalreminder.ca/podcast/212&lt;br /&gt; &lt;/a&gt;Episode 314: Valentine Haddad — &lt;a href= "https://rationalreminder.ca/podcast/314"&gt;https://rationalreminder.ca/podcast/314&lt;br /&gt; &lt;/a&gt;Episode 224: Scott Cederburg — &lt;a href= "https://rationalreminder.ca/podcast/224"&gt;https://rationalreminder.ca/podcast/224&lt;br /&gt; &lt;/a&gt;Episode 284: Scott Cederburg — &lt;a href= "https://rationalreminder.ca/podcast/284"&gt;https://rationalreminder.ca/podcast/284&lt;br /&gt; &lt;/a&gt;The Grossman - Stiglitz Paradox (feat. The Plain Bagel) — &lt;a href= "https://www.youtube.com/watch?v=zoXMZxe8crI"&gt;https://www.youtube.com/watch?v=zoXMZxe8crI&lt;/a&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;strong&gt; &lt;/strong&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;Books From Today’s Episode:&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;strong&gt; &lt;/strong&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;Irrational Exuberance — &lt;a href= "https://www.amazon.com/Irrational-Exuberance-3rd-Robert-Shiller/dp/0691166269"&gt; https://www.amazon.com/Irrational-Exuberance-3rd-Robert-Shiller/dp/0691166269&lt;/a&gt; &lt;/p&gt; &lt;p dir="ltr"&gt;&lt;strong&gt; &lt;/strong&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;strong&gt;Papers From Today’s Episode: &lt;/strong&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;&lt;strong&gt; &lt;/strong&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;‘The Disappearing Index Effect’ — &lt;a href= "https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4294297"&gt;https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4294297&lt;/a&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;‘Passive Investing and the Rise of Mega-Firms’ — &lt;a href= "https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4851266"&gt;https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4851266&lt;/a&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;‘Retail Financial Innovation and Stock Market Dynamics: The Case of Target Date Funds’ — &lt;a href= "https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3723265"&gt;https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3723265&lt;/a&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;Valentine Haddad on Google Scholar — &lt;a href= "https://scholar.google.com/citations?user=PlPjP48AAAAJ"&gt;https://scholar.google.com/citations?user=PlPjP48AAAAJ&lt;/a&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;‘How Competitive is the Stock Market? Theory, Evidence from Portfolios, and Implications for the Rise of Passive Investing’ — &lt;a href= "https://papers.ssrn.com/sol3/Papers.cfm?abstract_id=3821263"&gt;https://papers.ssrn.com/sol3/Papers.cfm?abstract_id=3821263&lt;/a&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;‘Household Portfolios and Retirement Saving Over the Life Cycle’ — &lt;a href= "https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4068063"&gt;https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4068063&lt;/a&gt;&lt;/p&gt; &lt;p dir="ltr"&gt;‘The equity premium: A puzzle’ — &lt;a href= "https://www.sciencedirect.com/science/article/abs/pii/0304393285900613"&gt; https://www.sciencedirect.com/science/article/abs/pii/0304393285900613&lt;br /&gt; &lt;/a&gt;‘In Search of the Origins of Financial Fluctuations: The Inelastic Markets Hypothesis’ — &lt;a href= "https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3686935"&gt;https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3686935&lt;/a&gt;&lt;/p&gt;</description>

Are index funds a silent disruptor? Or are the concerns overblown? In this grab-your-popcorn episode, Michael Green returns to the show after his previous appearance elicited a wave of compelling feedback from listeners. These included very smart...

Episode 332 - Randolph Cohen & Michael Green: How Concerned Should We Be About Index Funds?

A weekly reality check on sensible investing and financial decision-making, from two Canadians. Hosted by Benjamin Felix and Cameron Passmore, Portfolio Managers at PWL Capital.

The Rational Reminder Podcast

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