In this engaging conversation, Barry Ritholtz, co-founder and chairman of Ritholtz Wealth Management and host of Bloomberg's Masters in Business, dives into the lessons from his book 'How Not to Invest.' He highlights major investment mistakes, from Enron to Madoff, underscoring the need for sound strategies. Ritholtz explores the modern risk landscape in hedge funds, critiques high-frequency trading, and examines market dynamics during downturns. He also draws intriguing parallels between ecological changes and economic policies to illustrate unintended consequences.
01:03:28
forum Ask episode
web_stories AI Snips
view_agenda Chapters
menu_book Books
auto_awesome Transcript
info_circle Episode notes
question_answer ANECDOTE
Belfer Family Investment Failures
The Belfer family lost $2 billion in Enron stock by holding through the decline. - They then lost money with Bernie Madoff and FTX, demonstrating risks of self-managing or trusting poorly vetted advisors.
insights INSIGHT
Madoff Stole Time, Not Just Money
Bernie Madoff didn't steal just money but stole investors' time. - The value lost compounds over years, hugely magnifying the real damage beyond principal loss.
question_answer ANECDOTE
Advisors Who Profited While Underperforming
Two advisors turned a German chemical family billionaires while grossly underperforming benchmarks. - They charged enormous fees despite poor results, illustrating how clients often overpay while underperforming.
Get the Snipd Podcast app to discover more snips from this episode
In 'Flash Boys: A Wall Street Revolt', Michael Lewis delves into the world of high-frequency trading (HFT) and its corrupting influence on the U.S. stock market. The book follows a group of Wall Street iconoclasts, including Brad Katsuyama and Sergey Aleynikov, as they uncover and challenge the unethical practices of HFT firms. Lewis explains how these firms use advanced technology to front-run orders, creating a rigged market that benefits insiders at the expense of ordinary investors. The narrative is engaging and accessible, making complex financial concepts understandable for a broad audience. The book highlights the efforts of these individuals to reform the market and restore fairness, and it has had significant impact, including prompting investigations and public discussions about market structure and fairness[2][3][5].
How Not to Invest
Barry Ritholtz
In 'How Not to Invest', Barry Ritholtz focuses on the pitfalls of investing by highlighting bad outcomes in finance and other fields. The book distills Ritholtz's investing philosophy, gathered from three decades of his writings, into practical advice on avoiding typical investment mistakes. It emphasizes the importance of managing risk, being unemotional, and learning from historical examples of poor investment decisions.
The Bogle Effect
How John Bogle and Vanguard Turned Wall Street Inside Out and Saved Investors Trillions
Eric Balchunas
The Bogle Effect delves into the impact of John Bogle and Vanguard on the financial industry. Bogle's radical idea in 1975 to make investors the owners of his new fund company led to a virtuous cycle of lowering costs, which ultimately saved investors trillions of dollars. The book explores how Bogle's innovations extended beyond index funds into areas such as active management, ETFs, the advisory world, quantitative investing, ESG, behavioral finance, and trading platforms. It also examines why no other fund provider has replicated Vanguard's mutual ownership structure and highlights Bogle's unique character and influence on the industry[2][3][4].
The Psychology of Money
Timeless Lessons on Wealth, Greed, and Happiness
Morgan Housel
In 'The Psychology of Money,' Morgan Housel delves into the psychological and emotional aspects of financial decisions. The book consists of 19 short stories that illustrate how personal history, worldview, emotions, and biases influence financial outcomes. Housel emphasizes the importance of behavior over knowledge in managing money, highlighting the power of compounding, the dangers of greed, and the pursuit of happiness beyond mere wealth accumulation. He advocates for a frugal lifestyle, long-term perspective, and a balanced approach to investing, stressing that financial success is more about mindset and discipline than about technical financial knowledge[2][3][4].
Value: After Hours is a podcast about value investing, Fintwit, and all things finance and investment by investors Tobias Carlisle, and Jake Taylor. See our latest episodes at https://acquirersmultiple.com/podcastWe are live every Tuesday at 1.30pm E / 10.30am P.About Jake Jake's Twitter: https://twitter.com/farnamjake1Jake's book: The Rebel Allocator https://amzn.to/2sgip3lABOUT THE PODCASTHi, I'm Tobias Carlisle. I launched The Acquirers Podcast to discuss the process of finding undervalued stocks, deep value investing, hedge funds, activism, buyouts, and special situations.We uncover the tactics and strategies for finding good investments, managing risk, dealing with bad luck, and maximizing success.SEE LATEST EPISODEShttps://acquirersmultiple.com/podcast/SEE OUR FREE DEEP VALUE STOCK SCREENERhttps://acquirersmultiple.com/screener/FOLLOW TOBIASWebsite: https://acquirersmultiple.com/Firm: https://acquirersfunds.com/ Twitter: https://twitter.com/GreenbackdLinkedIn: https://www.linkedin.com/in/tobycarlisleFacebook: https://www.facebook.com/tobiascarlisleInstagram: https://www.instagram.com/tobias_carlisleABOUT TOBIAS CARLISLETobias Carlisle is the founder of The Acquirer’s Multiple®, and Acquirers Funds®.He is best known as the author of the #1 new release in Amazon’s Business and Finance The Acquirer’s Multiple: How the Billionaire Contrarians of Deep Value Beat the Market, the Amazon best-sellers Deep Value: Why Activists Investors and Other Contrarians Battle for Control of Losing Corporations (2014) (https://amzn.to/2VwvAGF), Quantitative Value: A Practitioner’s Guide to Automating Intelligent Investment and Eliminating Behavioral Errors (2012) (https://amzn.to/2SDDxrN), and Concentrated Investing: Strategies of the World’s Greatest Concentrated Value Investors (2016) (https://amzn.to/2SEEjVn). He has extensive experience in investment management, business valuation, public company corporate governance, and corporate law.Prior to founding the forerunner to Acquirers Funds in 2010, Tobias was an analyst at an activist hedge fund, general counsel of a company listed on the Australian Stock Exchange, and a corporate advisory lawyer. As a lawyer specializing in mergers and acquisitions he has advised on transactions across a variety of industries in the United States, the United Kingdom, China, Australia, Singapore, Bermuda, Papua New Guinea, New Zealand, and Guam. He is a graduate of the University of Queensland in Australia with degrees in Law (2001) and Business (Management) (1999).
The Acquirers Podcast 
