The Market Is So Efficient That It's Hard to Opt Into It

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Today about 90% of all trading is done by institutions. When you buy a stock, say TDC, the odds are 9 to 1 that it's an institution on the other side. The problem is when you own one stock, you have the opportunity to hit that home run, but you also have much greater odds. You reduce your odds of underperforming the more the number of stocks you buy.

IN THIS EPISODE, YOU’LL LEARN:

06:00 - The key to a winning investment strategy.
12:02 - What percentage of stocks actually outperform the market?
14:08 - Why active strategies such as active management, stock picking and market timing are “losing strategies”?
24:01 - Do markets value stocks correctly?
28:09 - Disentangling market efficiency with the concept of current valuation.
33:54 - How Warren Buffett’s outperformance can be explained by factors.
38:45 - How investors can improve their long run returns through factor investing.
39:12 - The 5 rules factors must meet to invest in them.
60:12 - Larry’s guide on how to think about allocating your portfolio between investing in US equities vs International equities vs Emerging Market equities.
67:18 - Why all factor ETFs are not created equal and which are best to invest in?
67:18 - The 3 characteristics to look for when comparing factor ETFs.
01:10:18 - How long you have to hold these investments to earn the expected premium?
And much, much more!

*Disclaimer: Slight timestamp discrepancies may occur due to podcast platform differences.

BOOKS AND RESOURCES

Join the exclusive TIP Mastermind Community to engage in meaningful stock investing discussions with Kyle and the other community members.
Check out Larry’s Book: The Only Guide to a Winning Investment Strategy You'll Ever Need.
Check out Larry’s Book: Think, Act, and Invest Like Warren Buffett: The Winning Strategy to Help You Achieve Your Financial and Life Goals.
Check out Larry’s Book: Investment Mistakes Even Smart Investors Make and How to Avoid Them.
Check out Larry’s Book: Your Complete Guide To Factor-Based Investing.
Check out Larry’s Book: The Incredible Shrinking Alpha: How to be a successful investor without picking winners.
Check out: Buckingham Wealth Partners.
Check out Larry’s writings: Alpha Architect.
Related Episode: High Returns From Low Risk Investing w/ Pim Van Vliet - MI221.

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