We Study Billionaires - The Investor’s Podcast Network TIP266: David Stein - Key Questions & Answers to Master Investing (Business Podcast)
Oct 27, 2019
Join David Stein, a former chief investment strategist and founder of the Money for the Rest of Us podcast, as he dives into masterful investing techniques. He discusses how to build an optimal portfolio, questioning if one should ever go fully into stocks. Stein emphasizes the value of diversifying across numerous asset classes and shares insights on alternative investments like real estate and Bitcoin. He also tackles the complexities of rebalancing portfolios, highlighting critical principles that guide successful investing strategies.
AI Snips
Chapters
Books
Transcript
Episode notes
Portfolio Construction
- Build a diversified portfolio like a hedge fund manager, focusing on unique return drivers.
- Choose investments with confidence in their ability to generate returns, similar to tending a garden.
Return Drivers
- Investment returns are driven by cash flow, cash flow growth, and investor sentiment (valuation).
- Consider these three factors when evaluating any asset class, simplifying investment decisions.
Investing vs. Speculation vs. Gambling
- Investments have a reasonable expectation of positive return, driven by cash flow or earnings.
- Speculations have uncertain returns, relying on price appreciation, while gambles have negative expected returns.
