TIP788: Simple Investing w/ David Fagan
We Study Billionaires - The Investor’s Podcast Network
Implementation: allocation and rebalancing rules
David outlines his 90/10 equity-to-fixed-income split, annual rebalancing, and simple trim/buy rules to enforce buy-low sell-high.
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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