The Prof G Pod with Scott Galloway

How Not to Invest — with Barry Ritholtz

376 snips
Mar 13, 2025
Barry Ritholtz, co-founder and chief investment officer of Ritholtz Wealth Management, shares insights from his book on common investment pitfalls. He argues that diversification is crucial, yet often overlooked, and critiques the alternative investment industry as a vast financial grift. Ritholtz also explores emotional influences on investing, emphasizing a disciplined approach and the merits of index funds. He touches on market valuations, the impact of geopolitics on wealth, and highlights the importance of luck in success, making for an engaging discussion on prudent investment strategies.
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INSIGHT

Fiduciary Duty

  • Traditional financial practices lacked the fiduciary duty seen in other professions.
  • This incentivized profit maximization over client well-being, prompting a shift towards fiduciary models.
ADVICE

Emotions in Investing

  • Control your emotions when investing, as they often lead to poor decisions.
  • Separate your 'thinking fast' emotional responses from 'thinking slow' market analysis.
ADVICE

Core and Satellite Investing

  • Diversify investments with a core of broad indexes and add specialized 'satellite' holdings around it.
  • This approach balances market exposure (beta) with targeted strategies.
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