Motley Fool Money
The Four Pillars of Investing with William Bernstein
Sep 10, 2023
William Bernstein, a renowned financial theorist and neurologist, shares his insights on investing, emphasizing that maximizing success odds is more crucial than chasing returns. He explains why a 2% real return can be impressive and offers a historical perspective on stock market bubbles. Bernstein critiques the financial advice industry, urging the importance of trustworthy advisors. He also discusses the value of including safe assets in portfolios and advocates for delaying Social Security benefits for optimal retirement planning.
31:51
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Quick takeaways
- Having enough safe assets is crucial for long-term investment success and allows investors to weather market downturns without panic-selling.
- Recognizing the impact of social psychology on investment behavior can help investors make more informed and rational decisions.
Deep dives
The Importance of Safe Assets in Investing
Having enough safe assets, such as treasury bills, allows investors to weather market downturns without panic-selling. The ability to withstand market volatility is crucial for long-term investment success, as selling investments at the bottom of a market collapse can lead to significant losses. The rich often accumulate a sufficient amount of safe assets, which enables them to take advantage of market opportunities and further increase their wealth.
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