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

Episode guests

Cullen Roche

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Episode notes

Podcast summary created with Snipd AI

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

Unpacking Active vs Passive Investing

20min

Sponsor Spotlight: Luxury, Rewards, and Vacation Home Management

3min

Rethinking Investment Strategies

16min

Understanding Stock Market Dynamics and Economic Realities

4min

Understanding Money Creation and Investment Risks

18min

Leveraged Investment Strategies and Risk Management

4min

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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