ARCHIVE: The one thing you need to invest in (to beat 95% of professional investors)

Dec 23, 2024

Ramin Nakisa, a personal finance YouTuber and former investment bank strategist, shares his insights on investing. He challenges the notion of diversification, suggesting that a single well-chosen fund can outperform 95% of professionals. The discussion spans the importance of bonds, the advantages of simplicity in investment strategies, and the lessons learned from the crypto market. Ramin emphasizes understanding personal goals and adapting to changing markets while navigating financial complexities.

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ADVICE

Diversification and Modesty

Diversify investments to acknowledge personal limits and market efficiency.
Recognize that professionals struggle to beat the market, so modesty is key.

INSIGHT

The Cult of Alpha

Most professional investors fail to outperform the market, despite vast resources.
This "cult of alpha" mindset often ignores the efficiency of markets.

ADVICE

Focus on Base Rates

Understand long-term returns and base rates of different asset classes.
Simple global equity investments can be enough for long-term success.

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For Christmas we've gone into the archive to dig out one of our favourite episodes.

Everyone talks about diversification, but how diverse do you really need to be? Can you just invest in one fund? Ramin Nakisa is personal finance YouTube royalty in the UK. He walks us through some of the major assets classes and their pros and cons - but also why one investment might just be enough for you to beat most professional investors, forever.

This episode was recorded in July 2023 so some information may have changed since then.

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