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Early Contrarian Investment
- Richard Oldfield invested early at 17 in a low-priced company tainted by association but fundamentally sound.
- He was drawn to cheap valuations, even without full knowledge, betting the risk was favorable.
Investment Simplicity Yet Difficulty
- The rudiments of investing are simple, but outperformance is very difficult due to market and fees.
- Unlike most professions, over half of investment managers underperform long-term market averages.
Critique of Index Funds
- Index funds heavily rely on market capitalization rules that create perverse incentives for inclusion.
- Investing passively means "hanging on to the coat tails of a lunatic," not true common-sense investing.