Excess Returns  cover image

Excess Returns

Dispelling Big Investing Myths | Dan Rasmussen

Dec 12, 2024
Dan Rasmussen, founder of Verdad Advisers and author of "The Humble Investor," discusses compelling market insights. He explains why high bond yields may not equal high returns and the potential in undervalued international stocks. Dan explores how private equity performance hinges more on portfolio construction than manager skill. He highlights positive changes in Japanese corporate governance and assesses UK market valuations post-Brexit. With a focus on humility in investing, he challenges prevailing market assumptions, offering valuable perspectives for all investors.
55:17

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Podcast summary created with Snipd AI

Quick takeaways

  • High bond yields may not signify higher returns, as they often reflect default risks rather than genuine investment opportunities.
  • The U.S. equity market's outperformance prompts a reevaluation of international stocks, which are currently undervalued and present diversification opportunities.

Deep dives

The Nature of Market Analysis

Investing requires a focus on meta-analysis rather than mere analysis. The key is to evaluate how one's perspective compares to market consensus, as individual opinions are less significant than collective market views. For instance, questioning why a bank would not lend money at a lower interest rate highlights how market perceptions influence investment decisions. Acknowledging this dynamic helps mitigate hubris and guides investors to make more informed and less risky choices.

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