Sound Investing Why should small cap value make higher returns?
In this first Q&A podcast of 2025, Paul, Daryl, and Chris discuss several listener questions and expand on Paul's rebuttal of Big ERN's recent criticisms of diversifying with small-cap value.
0:00 – Introduction
0:29 – Responding to Big ERN's critique
2:11 – Small-cap value lumpsum vs. dollar-cost averaging
6:38 – Daryl's take on SCV's premium persistence
8:46 – Chris' take on SCV's premium persistence
15:50 – Paul highlights the random timing of SCV vs. S&P500 returns
19:50 -- Are there good alternatives to Vanguard's Wellesley fund?
26:18 -- Does 2 Funds for Life mean no SCV in retirement?
29:35 -- Why not let Buffet manage our money in BRK.B?
33:52 -- What portfolio to get a 3.6% safe withdrawal rate in retirement?
38:53 -- Which accounts do we tap for our annual spending needs?
49:39 -- Why doesn't the Portfolio Configurator include REITs and emerging markets?
54:52 -- When will the Best-in-Class ETF recommendations be updated?
These tables were referenced-
Table G-1b - Fine Tuning Table: S&P 500 vs US SCV Equity Portfolio - Out-Performance