A Framework For Evaluating Investment Fads With Marlena Lee (EP.171)

In this episode, I’m joined by Marlena Lee from Dimensional Fund Advisors for a deep dive into evaluating investment fads and how to build better portfolios. We also explore the importance of global diversification and why certain investments may not belong in your long-term strategy.

 

Listen now and learn:

• A framework for evaluating whether an investment fad deserves a place in your portfolio.

• The truth about private investments and why gold or crypto might not be the hedges you think they are.

• Why past performance and company size don’t always indicate future returns.

 

Visit www.TheLongTermInvestor.com for show notes, free resources, and a place to submit questions.

 

[0:40] Eugene Fama’s Contributions to Finance

[6:39] Evaluating Investment Fads 

[11:10] Scarcity, Growth Stocks, and Extrapolating Returns  

[14:13] The Importance of Global Diversification  

[29:46] Gold and Cryptocurrencies as Investments  

[36:36] Hedge Funds and Private Investments