Episode 337 - 2024 Year-End AMA

63 snips

Dec 26, 2024

As the year wraps up, the hosts embrace an AMA format, tackling 161 listener questions. They explore impactful investment discussions, share humorous haircut anecdotes, and discuss integrating human capital into financial strategies. A fresh perspective on success is offered, connecting finance to personal fulfillment. The conversation also covers the importance of sound assumptions in planning and the nuances of corporate class funds. With gratitude for community support, they blend practical insights with light-hearted banter, looking ahead to an exciting new year.

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ANECDOTE

Influential Discussions

Ben Felix found discussions about Andrew Chen's research impactful, questioning factor data robustness.
Discussions about Mike Green's views on index funds' market effects were also eye-opening for him.

ADVICE

ETF Composition

Consider a globally diversified ETF tilted towards small value and profitability factors.
Dan Bortolotti and Mark McGrath suggest low-cost, balanced, diversified index portfolios like XEQT or VEQT.

ANECDOTE

Ben's Haircut

Ben Felix shaved his head for ten years due to the inconvenience of getting change for a cash-only barber.
He recently started getting regular haircuts again after moving closer to a convenient hairdresser.

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Thinking, Fast and Slow

Daniel Kahneman

In this book, Daniel Kahneman takes readers on a tour of the mind, explaining how the two systems of thought shape our judgments and decisions. System 1 is fast, automatic, and emotional, while System 2 is slower, effortful, and logical. Kahneman discusses the impact of cognitive biases, the difficulties of predicting future happiness, and the effects of overconfidence on corporate strategies. He offers practical insights into how to guard against mental glitches and how to benefit from slow thinking in both personal and business life. The book also explores the distinction between the 'experiencing self' and the 'remembering self' and their roles in our perception of happiness.

Becoming Your Own Banker

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The Psychology of Money

Timeless Lessons on Wealth, Greed, and Happiness

Morgan Housel

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A Random Walk Down Wall Street

Burton G. Malkiel

In this book, Burton G. Malkiel argues that stock market prices are essentially random and unpredictable, aligning with the efficient market hypothesis. He discusses historical financial bubbles, the futility of trying to beat the market through technical or fundamental analysis, and the importance of a diversified portfolio. The book also covers various investing techniques and theories, including modern portfolio theory, and advises investors to adopt a long-term, disciplined approach to investing.

Winning the loser's game

Timeless Strategies for Successful Investing

Charles D. Ellis

In 'Winning the Loser's Game,' Charles D. Ellis explains that investing has become a 'loser's game' where the outcome is determined by the mistakes of the loser, rather than the skills of the winner. Ellis advocates for a focus on developing and adhering to wise and appropriate investment policies, emphasizing the importance of understanding client needs, avoiding high fees, and investing for the long term. The book includes updated chapters on bond investing, investor behavior, and the impact of technology on investment decisions, while reinforcing core principles of successful investing such as indexing and reducing costs.

Disaster Proof Your Life

Preet Banerjee

Are You a Stock or a Bond?

Moshe Milevsky

Wealth Planning Strategies for Canadians 2024

Christine Van Kallenberg

Reboot Your Portfolio

Dan Bortolotti

Wealthier

Investing Field Guide for Millennials

Mark McGrath

Dan Solin