Dive into discussions on AI's surprising impact on the economy, including its role in both deflation and job displacement. Explore the complexities of private equity in 401(k) plans and the advantages of ETFs for long-term growth. The hosts weigh the emotional and financial value of personal investments like swimming pools. Plus, they tackle strategies like 'buying the dip,' patience in investing, and why expert financial advice is crucial for navigating tricky market conditions.
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AI's Deflationary Job Impact
AI could replace many white-collar entry and mid-level service jobs, causing deflationary pressure on the economy.
This disruption may lead to more government spending due to displaced workers needing support.
volunteer_activism ADVICE
Hedge Risks with Stocks and Creativity
Own stocks that benefit from AI-driven cost savings and profit margin expansions.
Use AI to improve your work and focus on creativity to stand out in an AI-dominated world.
volunteer_activism ADVICE
Target Date Funds and Private Equity
Target date funds are safe from private equity exposure for now and remain a decent choice for 401(k) allocations.
Expect retirement plans to offer both private equity and non-private equity target date fund options in the future.
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In 'Beating the Street', Peter Lynch explains his strategies for investing, emphasizing the importance of understanding the companies behind the stocks. He advises investors to focus on what they know, avoid macroeconomic predictions, and maintain a concentrated portfolio of well-researched stocks. Lynch provides practical advice on finding undervalued companies, doing thorough research, and making disciplined investment decisions. The book is a follow-up to his earlier work, 'One Up On Wall Street', and offers insights into his successful investment approach[1][3][4].
The Man Who Solved the Market
How Jim Simons Launched the Quant Revolution
Greg Zuckerman
This book tells the gripping story of how Jim Simons, a world-class mathematician and former code breaker, mastered the financial markets. Simons' firm, Renaissance Technologies, achieved unprecedented success with its Medallion fund, generating average annual returns of 66 percent since 1988. The book, based on unprecedented access to Simons and his team, details how Simons hired mathematicians, physicists, and computer scientists to develop algorithms that identified deeply hidden patterns in market data. It also explores how Simons' success extended beyond finance, influencing scientific research, education, and politics. The narrative highlights the collaborative nature of Renaissance Technologies and the significant impact its methods have had on various industries and society at large[2][4][5].
The intelligent investor
Jason Zweig
Benjamin Graham
Written by Benjamin Graham, 'The Intelligent Investor' is a seminal work on value investing that has inspired millions since its original publication in 1949. The book emphasizes the importance of distinguishing between investing and speculation, calculating the intrinsic value of companies, and maintaining a margin of safety. The revised edition includes updated commentary by Jason Zweig, who provides modern examples and insights to help readers apply Graham's principles in today's market. Warren Buffett, a disciple of Graham, has praised the book as 'the best book about investing ever written'.
Your Money and Your Brain
How the New Science of Neuroeconomics Can Help Make You Rich
Jason Zweig
When Genius Failed
Roger Lowenstein
When Genius Failed is a detailed account of the spectacular collapse of Long-Term Capital Management (LTCM), a hedge fund that was founded by Nobel Prize-winning economists and managed by some of the most brilliant minds in finance. The book explores the fund's rapid ascent, its complex trading strategies, and the catastrophic events that led to its downfall. Lowenstein provides a gripping narrative that delves into the psychological and financial factors that contributed to LTCM's failure, offering insights into the risks and consequences of high-stakes financial speculation.
A wealth of common sense
Why Simplicity Trumps Complexity in Any Investment Plan
Ben Carlson
This book sheds a refreshing light on investing by showing how a simplicity-based framework can lead to better investment decisions. It explains that complexity is often used to sell unnecessary financial products, and instead advocates for a deeper understanding of conventional options. The book provides insights on how to build a portfolio that makes sense for individual situations, exploit stock market volatility, and avoid common investment traps. It stresses the importance of having a plan, diversification, and long-term common sense in investing, and offers practical advice on separating meaningful information from the meaningless in the complex financial markets.
On episode 174 of Ask The Compound, Ben Carlson and Duncan Hill discuss AI and deflation, private equity in 401(k)s, ETFs for the long run, and much more! Submit your Ask The Compound questions to askthecompoundshow@gmail.com!
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Investing involves the risk of loss. This podcast is for informational purposes only and should not be or regarded as personalized investment advice or relied upon for investment decisions. Ben Carlson and Duncan Hill are employees of Ritholtz Wealth Management and may maintain positions in the securities discussed in this video. All opinions expressed by them are solely their own opinion and do not reflect the opinion of Ritholtz Wealth Management. See our disclosures here: https://ritholtzwealth.com/podcast-youtube-disclosures/
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