We Study Billionaires - The Investor’s Podcast Network
TIP278: Contrarian Investing Ideas w/ Cullen Roche (Business Podcast)
Jan 19, 2020
In this engaging discussion, investment expert Cullen Roche, founder of Pragmatic Capitalism and known for his savvy during the 2008 crisis, dives into contrarian investing ideas. He challenges the myth of passive investing and explains why the stock market outperforms gold as an inflation hedge. Cullen breaks down the importance of understanding market dynamics versus economic realities and warns against the risks of leveraged ETFs. Emphasizing personalized, long-term investment strategies, he promotes a mindful approach to navigating today's financial landscape.
01:03:16
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Quick takeaways
- Cullen Roche argues that all investment strategies involve active management, challenging the effectiveness of passive investment branding in the fund management industry.
- Roche emphasizes understanding behavioral risks in portfolio management, highlighting how misjudging risk profiles can lead to emotional stress during market downturns.
Deep dives
Active vs. Passive Investing
The podcast discusses the misconceptions surrounding active and passive investing. Colin Roche argues that the distinction is often overstated and primarily serves as a marketing strategy for fund management companies. He emphasizes that all investment management involves activity, regardless of the label. For example, he critiques a hedge fund ETF labeled as passive, noting its active management fees and strategies, thereby illustrating the confusion inherent in these classifications.
