You know you’ve made it when you’re on a podcast. I say this joking, as I now have the pleasure of announcing my new role as co-host on the Stay Wealth San Diego podcast. You can check out the episode below:
As I was reviewing the episode (you’re allowed to listen to your own podcast, right?), it hit me just how many times I referenced the shows notes. In the episode, I mentioned many studies and quotes. Listening to me reference other things really drove home that there is so much good information out there.
In the episode alone, I mention;
This is an amazing study. Right here, you have hard evidence – in numbers – that costs matter in investing.
Not only that – but the study comes from a company that has no incentive to publish this kind of information. For Morningstar to put out content that puts their entire business model at risk is insane! (This is because the company not-so-subtly suggests – via their star rating system – that past performers may be a good future investment.) But, Morningstar’s own report shows that costs dictate what will be a good investment – and not past performance.
- the hilarious commentary on diversification, with credit to Michael Kitces
If everything in the portfolio went up at the same time, it would mean you’re not diversified! pic.twitter.com/4zQuSPyB0Y
— MichaelKitces (@MichaelKitces) August 5, 2017
- another hilarious tweet, this time by Morgan Housel
A book called Shut Up and Wait.
Each page is just this chart. pic.twitter.com/gfggy47U6q
— Morgan Housel (@morganhousel) July 24, 2017
Like the tweet by Kitces (on a different, but related subject), this tweet gets it right. Of course, we can’t tell most people (especially clients) to “shut up.” But, the meaning of the message is clear: investing requires patience.
Oh – did you want daily data of the S&P 500 going back to 1950? And you want it at the click of a button? And you want it for free!? Well, in our magical, amazing world we live in, you can have just that.
In the episode, I use this data to explain that daily investment returns can be hit or miss. The odds are that on a given day, you could lose or make money. But, as your timeline increases, so do the odds that you’ll come out ahead.
Of course, I talk about a lot more than just the above in the episode. But, the goal of this blog post was to share my excitement about the wealth of information that is available today. It is simply amazing!
. . .
You can listen to the latest Stay Wealth San Diego – with its new co-host yours truly – here. I can only hope that you’ll enjoy listening to it as much as I did.