We Study Billionaires - The Investor’s Podcast Network TIP461: The Next Investing Revolution w/ Jim O'Shaughnessy
Jul 1, 2022
Jim O'Shaughnessy, an investing pioneer and quant legend, shares his profound insights on the evolution of investment strategies. He discusses the '4 horsemen of the investing apocalypse' and how traditional metrics like GDP are losing relevance in today's market. Jim highlights the importance of a rational, probabilistic mindset amidst volatility while unveiling innovative financial strategies, including Bitcoin's potential in retirement savings. He also reflects on the invaluable lessons learned from his philanthropic grandfather, emphasizing the weight of family legacy in investment decisions.
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Four Horsemen of Investing
- The four horsemen of the investing apocalypse are fear, greed, hope, and ignorance.
- These emotions, particularly during market downturns, lead to poor investment decisions.
Risk Tolerance vs. Reality
- Jim O'Shaughnessy recounts an example of how men often overestimate their risk tolerance in investing.
- He compares it to being shown a picture of a snake versus having a live snake thrown in your lap.
Managing Clients During Downturns
- During market corrections, focus on qualifying clients and assess their ability to hold through downturns.
- Pay attention to their past behavior, particularly how quickly they sell out of investments.
