MI265: How to Be a Successful Investor Without Picking Winners w/ Larry Swedroe

Mar 28, 2023

01:02:45

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Rebecca brings back Larry Swedroe. Together they talk about why generating alpha is becoming more difficult, how competition is a significant factor in its decline and much more!

Larry Swedroe is head of the financial and economic research office for Buckingham Wealth Partners, a Registered Investment Advisor firm in St. Louis, Mo. Previously, Larry was vice chairman of Prudential Home Mortgage. Larry holds an MBA in finance and investment from NYU, and a bachelor’s degree in finance from Baruch College.

IN THIS EPISODE, YOU’LL LEARN:

00:00 - Intro.

01:43 - The difference between Alpha vs Beta.

09:39 - Why is the ability to generate alpha shrinking.

15:01 - How competition has played an increasing role in reducing alpha over time.

22:56 - What would happen if everyone went passive.

30:18 - Larry’s perspective on concentration vs diversification.

37:29 - Why good businesses are not as good investments.

59:15 - Should investors prefer dividend paying stocks over non-dividend paying stocks.

*Disclaimer: Slight timestamp discrepancies may occur due to podcast platform differences.

BOOKS AND RESOURCES

Join the exclusive TIP Mastermind Community to engage in meaningful stock investing discussions with Kyle and the other community members.
Check out Larry’s Book: The Only Guide to a Winning Investment Strategy You'll Ever Need
Check out Larry’s Book: Think, Act, and Invest Like Warren Buffett: The Winning Strategy to Help You Achieve Your Financial and Life Goals.
Check out Larry’s Book: Investment Mistakes Even Smart Investors Make and How to Avoid Them.
Check out Larry’s Book: Your Complete Guide To Factor-Based Investing
Check out Larry’s Book: The Incredible Shrinking Alpha: How to be a successful investor without picking winners
Check out: Buckingham Wealth Partners
Check out Larry’s writings: Alpha Architect.
Related Episode: Listen to MI238: A Guide To A Winning Investment Strategy w/ Larry Swedroe, or watch the video.

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Connect with Rebecca Twitter | Instagram

Email: Rebecca@theinvestorspodcast.com

Connect with Larry: Twitter |LinkedIn

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