The Long View

Barry Ritholtz: ‘How Not to Invest’

Mar 18, 2025

Barry Ritholtz, co-founder and chief investment officer of Ritholtz Wealth Management, shares profound insights on the art of investing. He emphasizes the unpredictable nature of markets and the vital need for cautious strategies. Ritholtz also discusses the illusions of forecasting and the importance of admitting ignorance in finance. He critiques emotional investing, advocating for well-being over status in financial decisions. With a mix of humor and wisdom, he reveals how learning from mistakes is key to navigating market cycles.

01:05:57

Creator website

Episode guests

Barry Ritholtz

AI Summary

AI Chapters

Episode notes

Podcast summary created with Snipd AI

Quick takeaways

Barry Ritholtz's evolution from trader to long-term investor underscores the importance of behavioral economics and emotional detachment in investment decisions.

His transition from trading to public writing has engaged readers in an ongoing dialogue, refining his investment philosophy through feedback and shared knowledge.

Ritholtz argues that focusing on secular market cycles and broader economic principles is more effective than relying on unpredictable short-term forecasts for investing success.

Deep dives

Barry Ritholtz's Career Evolution

Barry Ritholtz transitioned from a trader to a long-term investor over a decade, largely influenced by behavioral economics. He realized that early trading successes were partly due to a robust bull market and elements of luck, rather than skill. Consuming financial media on a 'media diet,' Ritholtz sought to detach emotional influences from his trading decisions, paving the way for a more analytical approach. His academic background in applied mathematics, political science, and philosophy contributed to developing a framework for understanding probabilities and market behavior.

Intro

5min

The Writer's Journey and Financial Insights

14min

The Illusion of Predictability

7min

The Power of Admitting Ignorance and Understanding Numbers

6min

Understanding Secular Market Cycles and Their Impact

2min

Navigating Market Cycles and Emotional Investing

30min

Wrap-Up and Call to Action

4min

Today on the podcast, we’re welcoming Barry Ritholtz. He’s co-founder, chairman, and chief investment officer of Ritholtz Wealth Management, a firm that was launched in 2013. He’s the creator and host of Masters in Business, one of the earliest finance-related podcasts. He also regularly posts on The Big Picture, where he’s been covering everything investing related since 2003. He is the author of Bailout Nation, and his latest book, How Not to Invest: The Ideas, Numbers, and Behaviors That Destroy Wealth—and How to Avoid Them, has just been published.