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What is the Dave Ramsey Portfolio?

9 snips
Oct 22, 2025
Ben Carlson and Duncan Hill dive into the intriguing world of investment strategies. They explore how many stocks outperformed the S&P over different periods and the challenges of active management. The discussion touches on the 4% withdrawal rule for retirement, providing insights on spending down assets. They also evaluate Dave Ramsey's four-fund portfolio and share practical advice on investing for college savings. Plus, they discuss the importance of behavioral finance when it comes to managing money.
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INSIGHT

Practical Questions Drive The Episode

  • Many retirement questions hinge on sequencing and spending choices rather than just portfolio size.
  • The hosts framed the episode around practical listener questions to show applied investing trade-offs.
INSIGHT

Outperformance Concentration Shifts Over Decades

  • Roughly 150 S&P stocks outperformed the index from 2016–2020 and about 241 from 2021–2025, showing concentration shifts.
  • Only 41 stocks outperformed both five-year periods, mostly big tech and some surprising consumer names.
INSIGHT

Annual Outperformers Vary Widely

  • On average about 239 companies outperform the S&P in a single year, so roughly half the index can beat the index annually.
  • Concentration spikes like late-1990s and 2023–24 reduce the number of outperformers temporarily.
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