The Security Analysis Podcast Dan Rasmussen - The Humble Investor
18 snips
Mar 26, 2025 
Dan Rasmussen, founder of Verdad and author of 'The Humble Investor,' dives into innovative investment strategies shaped by his unique background. He discusses the importance of skepticism in investing, warning against blind reliance on expert predictions. Dan advocates for global diversification, highlighting the benefits of including international stocks. He emphasizes the enduring appeal of value investing during market downturns and critiques the risks associated with private equity, underscoring the real returns possible in public markets.
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Value Factor’s Endurance Explained
- Value factor is rooted in human nature’s optimistic and pessimistic extremes, making it hard to arbitrage away.
- Multiple factors (value, quality, momentum) reflect investors’ poor ability to predict future cash flows.
Value Shines In Crisis Rebounds
- Value investing delivers best returns in crisis because deeply beaten-down companies rebound strongly.
- Crises exacerbate behavioral biases, offering disciplined investors opportunities to capitalize on overreactions.
Prudent Market Timing With Factors
- Shift portfolio toward small cap and value stocks when high yield spreads widen, indicating crisis conditions.
- Use market timing prudently to tilt exposures based on risk-reward rather than frequent panic-driven moves.
