Sound Investing Larry Swedroe: The Evidence-Based Rules Every Investor Needs to Know | Bainbridge Financial Literacy Series 2026
Apr 15, 2026
Larry Swedroe, an evidence-based investing author and researcher, shares core rules from academic finance. He discusses the five reliable factors, dangers of chasing recent winners, why growth’s returns are often priced in, crypto’s weak economic case, and how AI will make markets harder to beat. Practical takes on rebalancing, tactical moves, and which fund families he trusts round out the conversation.
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How A Childhood Gift Shaped His Investing Career
- Larry's father bought him ten single shares at age 10, sparking a lifelong interest in markets and leading him to reject stock-picking later.
- That early exposure turned him from an aspiring analyst into a long-term evidence-based investing advocate.
Don't Chase Recent Winners Rebalance Into Losers
- Avoid chasing recent winners; instead rebalance and buy what's cheap to capture expected mean reversion.
- Swedroe and Paul show slides where S&P outperformance lured investors away from small value and emerging markets, then reversed.
Make Occasional Small Tactical Moves
- Only make tactical allocation changes sparingly and modestly when valuations reach extreme deviations from norms.
- Swedroe admits he made three tactical moves in 30 years, shifting modest percentages when spreads hit multi‑standard deviations.
