The Long Term Investor How Not to Invest: Avoiding Common Mistakes and Dangerous Financial Advice with Barry Ritholtz (EP.210)
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Jun 25, 2025 
Barry Ritholtz, founder and chief investment officer of Ritholtz Wealth Management and author of How Not to Invest, dives into critical investment misconceptions. He discusses the pitfalls of relying on financial forecasts and how sensational headlines can mislead investors. Ritholtz emphasizes the importance of humility and skepticism while interpreting advice from financial celebrities. He also shares practical strategies to control emotional biases and the value of seeking professional financial guidance. Tune in for his engaging anecdotes and actionable insights!
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Skeptical Forecasts and Market Crashes
- Barry Ritholtz shared his experience pitching a skeptical financial forecast on a big media platform, predicting a Dow drop before the 2008 crisis.
- Despite initial dismissal, his accurate analysis gained credibility as the market crashed, illustrating the appetite for specific predictions even if initially unpopular.
The Allure of Financial Predictions
- People crave specific financial forecasts despite their randomness and unreliability.
- The allure of specificity and outlier predictions often misleads investors to overweight flawed advice.
Red Flags in Financial Advice
- Beware of financial "gurus" who often provide extreme or wrong advice despite popularity.
- Scrutinize advice critically and be cautious of clickbait and media-driven sensationalism.
