TIP788: Simple Investing w/ David Fagan
We Study Billionaires - The Investor’s Podcast Network
The Pygmalion effect and positive expectations
David cites the Rosenthal study and Helen Keller to show belief and expectations materially change performance.
Stig Brodersen speaks with David Fagan about the case for indexing and what most investors get wrong about performance, financial advisors, and risk. They explore why missing a few percentage points can delay retirement by years, how to think about rebalancing, and what it truly means to be the overseer of your investments.
IN THIS EPISODE YOU’LL LEARN: 00:00:00 - Intro
00:01:57 - Why indexing works for almost everyone
00:12:49 - How to properly evaluate investment performance
00:24:58 - How to think about asset allocation and rebalancing using a simple, behaviorally sound framework
00:33:42 - What it really means to be the overseer of your investments, even if you outsource management
00:36:21 - Why missing just a few percentage points in returns can cost you years of your life
00:36:42 - Why missing 3% return means having to work another 6–7 years instead of retiring
00:44:13 - How to use expectations in the best possible way
Disclaimer: Slight discrepancies in the timestamps may occur due to podcast platform differences.
BOOKS AND RESOURCES
- Join the exclusive TIP Mastermind Community to engage in meaningful stock investing discussions with Stig, Clay, Kyle, and the other community members.
- Learn how to join us in Omaha for the Berkshire meeting here.
- Listen to our interview with David Fagan about investing like a business owner.
- Listen to our interview with David Fagan about Buffett’s favorite business book.
- Stig’s blog post on his portfolio and track record since 2014.
- Related books mentioned in the podcast.
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