We Study Billionaires - The Investor’s Podcast Network

TIP278: Contrarian Investing Ideas w/ Cullen Roche (Business Podcast)

Jan 19, 2020

Investment expert Cullen Roche shares insightful contrarian market ideas. He discusses why true passive investing is a myth and reveals how the stock market can hedge against inflation better than gold. Roche clarifies misconceptions about the economy versus financial markets and the intricacies of investment strategies. He also explains the mechanics of money creation and the role of debt, urging a critical view of market dynamics that may not align with economic realities. A must-listen for those looking to rethink their investment approach!

01:03:16

Episode guests

Cullen Roche

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Episode notes

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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.

He contests the belief that gold is a better inflation hedge than stocks, asserting that equities often yield superior inflation-adjusted returns in economic expansions.

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.

Intro

2min

Navigating Investment Complexity

16min

Navigating Economic Contrasts

6min

Debunking Investment Myths

17min

Understanding Stock Market Dynamics and Economic Perception

4min

Understanding Money Creation and Debt

18min

Mastering Call Options and Prudent Investment Strategies

3min

On today's show, we talk to investment expert, Cullen Roche, about contrarian market ideas at the start of 2020.

IN THIS EPISODE, YOU'LL LEARN:

Why you can’t truly be a passive investor.
Why the stock market is a better inflation hedge than gold.
What are the differences and similarities between financial markets and the economy.
If the US government running out of money.
Ask The Investors: Should I invest in a leveraged ETF if I think the stock market will go up over the next few decades?

BOOKS AND RESOURCES

Join the exclusive TIP Mastermind Community to engage in meaningful stock investing discussions with Stig, Clay, and the other community members.
Preston's book recommendation, You Can Be A Stock Market Genius by Joel Greenblatt.
Preston and Stig’s interview with Cullen Roche about Pragmatic Capitalism.
Cullen Roche’s website, Pragmatic Capitalism.
Tweet directly to Cullen Roche.

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