beyond MD with Dr. Yatin Chadha Ep #113 - Part 3 of the Wealth Formula: Investing
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Mar 27, 2026 A practical dive into investing choices like ETFs, stocks, real estate and effort versus return. Explains the power of time, compounding, and the cost of delaying contributions. Covers valuation signals like the CAPE ratio and how to invest through long slow markets. Emphasizes controlling what you can and the case for geographic diversification.
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Match Returns To Effort With A Personal Sweet Spot
- Investing has a return vs effort spectrum where ETFs offer high return for low effort and starting a business offers the highest return for the most effort.
- Dr. Yatin Chadha finds his sweet spot with ~50% ETFs and ~50% individual stocks held long term based on effort tradeoffs.
Start Investing Immediately To Let Time Work
- Start early because time is multiplicative: a 7% return over 35 years on $2,000/month yields $3.4M versus $2.3M if started five years late.
- Delaying five years forces roughly 50% higher monthly contributions ($3,000) to hit the same target.
Single Berkshire Share Turned $5,000 Into $790,000
- A physician bought one Berkshire A share for $5,000 in 1989 and held it until 2025 when it was worth $790,000.
- More than two thirds of the gains arrived in the last five years, illustrating exponential late-stage growth.
