Sep 9, 2021
In this week’s episode, Cameron and Benjamin share what’s on
their mind and delve into listener questions on subjects ranging
from the CAPE ratio to how to go about changing someone’s mind.
Tuning in you’ll get a preview of some of the formidable guests
featured on future episodes, like John Cochrane and Hersh Shefrin.
We also cover book recommendations and unpack the concept of
libertarian paternalism from the highly influential best-seller,
Nudge: The Final Edition by Richard Thaler and Cass
Sunstein, and how it can be a force for good. We cover various
facets of passive investing and index funds including how, despite
its proven effectiveness, many people continue to take a dim view
of it. Learn why certain personality types may be more drawn to
active investing and why. We also share tips for reasoning with
skeptics, including some useful questions to ask when things get
heated. Next, we take an in-depth look at index funds and global
returns over the last century based on the research of Dimson,
Marsh, and Staunton and their book Triumph of the
Optimists. We also answer questions from our Talking Cents
Cards and take a look at the best bad advice from the previous
week. This episode is packed with fascinating anecdotes and
excellent recommendations that you won’t want to miss! Tune in
Key Points From This Episode:
- We reflect on some of the reviews and feedback we’ve received
over the past week. [0:03:00.7]
- An overview of the guests that listeners can look forward to on
future episodes. [0:06:15.8]
- Talking Cents Cards and how they can introduce your family to
conversations about money. [0:07:01.2]
- Introducing Nudge: The Final Edition by Richard Thaler
and Cass Sunstein, and the concept of libertarian paternalism.
- Cameron shares his story of the week, an article from Magnify
Money on how emotions can influence investor decisions.
- An update on our response to a listener question on the CAPE
ratio by discussing the work of John Cochrane on determining
- We unpack a listener question on whether one should be looking
to convert family members who fit into the average, active investor
- What Benjamin has learned from Think Again by Adam
Grant, about how to talk to people you disagree with.
- How Benjamin experienced a revelation on index funds.
- An examination of index funds and global returns over the last
century based on the research of Dimson, Marsh, and Staunton and
their book Triumph of the Optimists.
- An in-depth look at how global events factor into Dimson,
Marsh, and Staunton’s data. [0:39:35.9]
- How dictatorships, civil troubles, wars, unsuccessful economic
and monetary policies, and communism have prevented countries from
transitioning from emerging to developed.
- Cameron and Benjamin answer a Talking Cents card question by
sharing the first big purchases that they saved up for.
- Cameron and Benjamin answer a second card question: What is a
creative way to save money in today’s digital era?
- Hear this week’s bad advice from an Entrepreneur article
titled: 7 Downsides to Passive Investing and Why it Can Be Bad for
Your Portfolio. [0:54:09.2]