Odd Lots Patrick O'Shaughnessy on the Next Big Thing in Passive Investing
Sep 6, 2021
Patrick O'Shaughnessy, CEO of OSAM and host of the Invest Like the Best podcast, dives into the future of passive investing. He explains custom indexing, a groundbreaking approach allowing for personalized investment strategies. O'Shaughnessy discusses how this innovation stands apart from traditional indices like the S&P 500 and addresses why it’s gaining traction among major firms. The conversation also touches on the evolving role of cryptocurrencies, emphasizing their potential in modern portfolios while acknowledging their risks and market dynamics.
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Passive Investing as a Technology
- Investing in an S&P 500 ETF is like investing in 1990s technology.
- Technological advancements since then suggest there might be better investment strategies.
Custom Indexing: The Next Evolution
- Custom indexing offers personalized portfolios tailored to individual needs and preferences.
- It's the next step in the evolution of investing, moving beyond the one-size-fits-all approach of traditional index funds.
Portfolio Personalization
- Investors can personalize portfolios to align with their values and specific circumstances.
- Patrick O'Shaughnessy avoids capital markets exposure due to his career, and tobacco stocks due to personal values.