AI-powered
podcast player
Listen to all your favourite podcasts with AI-powered features
Sound Investing
SPIVA REPORT: One of the most important studies on fund returns
Aug 30, 2023
Host Paul introduces an upcoming presentation on small cap value. Ben Carlson's article 'The Luckiest Generation' is discussed, highlighting the challenges faced by baby boomers. The SPIVA Report reveals the underperformance of actively managed funds, promoting the use of low-cost index funds. The impact of high management fees on low-risk investments is explored, emphasizing the unlikelihood of active managers outperforming.
32:02
Episode guests
AI Summary
AI Chapters
Episode notes
Podcast summary created with Snipd AI
Quick takeaways
- The baby boomer generation has experienced significant financial returns, but also faced challenges such as high mortgage rates and market downturns, emphasizing the role of luck in financial outcomes.
- The SPIVA report highlights the consistent underperformance of US equity funds compared to their benchmarks, emphasizing the importance of index funds as a more reliable investment option with consistent asset class exposure.
Deep dives
The Luckiest Generation: Baby Boomers' Financial Success
The podcast episode discusses how the baby boomer generation has been one of the luckiest generations in history in terms of financial returns. It highlights the significant returns on financial assets that baby boomers have experienced since 1983, including stocks (7,930 percent), bonds (1,060 percent), and housing (515 percent). These returns translate to annual returns of 11.4 percent for stocks, 6.2 percent for bonds, and 4.6 percent for housing. The episode also acknowledges the benefits baby boomers had, such as not having to deal with student loans. However, it also emphasizes the challenges they faced, such as high mortgage rates and market downturns. The overall message is that luck plays a significant role in financial outcomes, but there are steps individuals can take, like investing in low-cost index funds and controlling their emotions, to improve their chances of success.
Get the Snipd
podcast app
Unlock the knowledge in podcasts with the podcast player of the future.
AI-powered
Discover
highlights
Listen to the best highlights from the podcasts you love and dive into the full episode
Save any
moment
Hear something you like? Tap your headphones to save it with AI-generated key takeaways
Share
& Export
Send highlights to Twitter, WhatsApp or export them to Notion, Readwise & more
AI-powered
podcast player
Listen to all your favourite podcasts with AI-powered features
Discover
highlights
Listen to the best highlights from the podcasts you love and dive into the full episode