343: The Evolution of Money Management with Wall Street Legend, Burton Malkiel

Today, I'm thrilled to be speaking with Burt Malkiel. You probably know him as the author of A Random Walk Down Wall Street, originally published 50 years ago and is now in its 13th edition. In the book, he made a compelling case to make index funds the core component of one's investment portfolio. Keep in mind that index funds weren’t publicly available at that time.

Having written one of the most influential books in the history of investing is an extraordinary achievement. And Burt's accomplishments are many, including several lifetime achievement awards from professional investment organizations.

Burt is the Chemical Bank Chairman's Professor of Economics at Princeton University. He has also served as a member of the Council of Economic Advisers, president of the American Finance Association, the dean of the Yale School of Management, and spent 28 years as a director at the Vanguard Group.

It was such an honor to have Burt on the show, and I'm so excited to share our conversation with you. You'll hear how he got to where he is today, from his humble beginnings as a poor kid in a Boston tenement house to his published work that transformed investing forever. He'll also share his thoughts on how today's inflation compares to the 1970s, the challenges we face to get it under control, and so much more!

GET A FREE COPY OF BURT’S BOOK, A RANDOM WALK DOWN WALL STREET.

Here's all you have to do...

• Step 1.) Subscribe to the podcast and leave an honest rating & review over on iTunes.
• Step 2.) Text BOOK, that’s B-O-O-K to 866-482-9559 for a link to our book request page, complete the form and we will ship you the book for free. It’s that simple!

In this podcast interview, you’ll learn:

• Why Burt believes education is so important–even though neither he nor I ever woke up excited to go to school.
• Why Albert Einstein called compound interest “the eighth wonder of the world.”
• How A Random Walk Down Wall Street slowly but surely changed investing as we know it today.
• What makes financial planning for growth and planning for preservation so drastically different.
• How to invest in individual stocks and make bets on businesses you believe in without putting your money at risk.
• How Burt structured his portfolio to generate safe, reliable fixed income once he needed to start taking RMDs.
• How high net worth individuals often get into financial trouble.
• How Burt thinks our current era of inflation compares to the stagflation of the 1970s–and why he’s pessimistic about our ability to get inflation under control.

Show Notes: RetireWithPurpose.com/343

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