Larry Swedroe Presentation on Passive Investing

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Mel Lindauer
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Larry Swedroe Presentation on Passive Investing

Post by Mel Lindauer »

Hello Everyone:

Here's a powerful presentation by Boglehead author, Larry Swedroe on passive investing. It's about an hour long, but definitely time well spent. Enjoy!

http://www.hillinvestmentgroup.com/2014 ... matt-hall/
Best Regards - Mel | | Semper Fi
Leeraar
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Re: Larry Swedroe Presentation on Passive Investing

Post by Leeraar »

Wonderful. Thank you!

L.
You can get what you want, or you can just get old. (Billy Joel, "Vienna")
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Re: Larry Swedroe Presentation on Passive Investing

Post by larryswedroe »

Hopefully you will all find it helpful and perhaps entertaining too, and you get to "meet" me if you haven't

But I did want to point out one error I noted when I watched the video for the first time last night
The example about commercial real estate and defaults is off by one year, I cited the defaults rising from 1 to 6 to 9 percent from 2009-2011, but that actually happened from 2008-2010, And in 2010 REITS returned almost 30%, despite the rising default rate.

Best wishes
Larry
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Re: Larry Swedroe Presentation on Passive Investing

Post by iceport »

Great conversation! I especially liked the lesson that it's not how good or bad the news is that moves the market, it's how much better or worse than expected the news is that matters.

And yes, that was a good introduction. Nice to "meet" you, Larry.

Thanks for the link, Mel.

--Peter
"Discipline matters more than allocation.” |—| "In finance, if you’re certain of anything, you’re out of your mind." ─William Bernstein
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Re: Larry Swedroe Presentation on Passive Investing

Post by LadyGeek »

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Re: Larry Swedroe Presentation on Passive Investing

Post by Allan »

I watched the entire video and enjoyed it very much, it was a nice pep talk on passive investing, something I need every now and then. And I did learn from it.

Thanks again!

Allan
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Re: Larry Swedroe Presentation on Passive Investing

Post by am »

Enjoyed your talk Larry. Well done!
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Re: Larry Swedroe Presentation on Passive Investing

Post by cfs »

Thanks for the link.

Good job by Larry - and oh by the way (talking about the boys of summer now), I concur that for the first ten years Albert Pujols was second to none.

Thanks for reading.

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Re: Larry Swedroe Presentation on Passive Investing

Post by Tortoise Banker »

Really enjoyed it, thanks Larry and Mel!
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Re: Larry Swedroe Presentation on Passive Investing

Post by Wildebeest »

I watched the video and I did find it entertaining and I got a new appreciation for and enjoyed "meeting" Larry very much.

Thank you.
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Re: Larry Swedroe Presentation on Passive Investing

Post by Aesthetics »

Great presentation and I learned a lot. Thanks Larry.

Though, I do believe Larry was wrong in his example of sports. The reason why his friend will beat him in most of the matches in tennis is because of the way tennis matches are set up. Given a 5 set match, if one person has a 51% chance of winning every point, he will win ~63% of his matches against his opponent. With a 55% chance, he will win ~95% of his matches. With a 58% chance, he will win virtually every match against his opponent. But if you lower the match to just one set, the better player will not win as many matches, which is why you often observe many more upsets in women's tennis (3 set matches) vs. men's tennis. The # of points played and sets in a tennis match reduces the amount that luck plays into it, thereby reducing variance and allowing the better player to win more often than other sports.

This same analysis isn't the same for say... golf. There is much more variance in golf matches and luck plays a larger factor.
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Re: Larry Swedroe Presentation on Passive Investing

Post by Leeraar »

Aesthetics wrote: This same analysis isn't the same for say... golf. There is much more variance in golf matches and luck plays a larger factor.
Attributed to Gary Player and many other golfers: "The more I practice, the luckier I get."

L.
You can get what you want, or you can just get old. (Billy Joel, "Vienna")
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Re: Larry Swedroe Presentation on Passive Investing

Post by Angst »

Mel Lindauer wrote:Hello Everyone:

Here's a powerful presentation by Boglehead author, Larry Swedroe on passive investing. It's about an hour long, but definitely time well spent. Enjoy!

http://www.hillinvestmentgroup.com/2014 ... matt-hall/
Every now and then - pretty frequently actually - you see a new thread pop up where someone asks how they might go about convincing someone, be it a relative, a friend, an "expert" or an "idiot" of the futility of active investing and the wisdom of passive, index investing. My suggestion to anyone dealing with this problem is to sit that person down (tie them up if necessary) and make them watch this presentation. It's classic Larry. There's nothing particularly new for regular BH's, but it's an opportunity to hear the complete indexing pitch made by Larry to a general audience of non-experts. It can be difficult to get someone to read a book, but watching this presentation with a friend is something you can get done. I highly recommend it. (There's a good 6 minutes of intro that is fairly interesting in itself, but can be jumped ahead of if your quarry is squirming in their chair.)

Angie
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Re: Larry Swedroe Presentation on Passive Investing

Post by Mel Lindauer »

Angst wrote:
Mel Lindauer wrote:Hello Everyone:

Here's a powerful presentation by Boglehead author, Larry Swedroe on passive investing. It's about an hour long, but definitely time well spent. Enjoy!

http://www.hillinvestmentgroup.com/2014 ... matt-hall/
Every now and then - pretty frequently actually - you see a new thread pop up where someone asks how they might go about convincing someone, be it a relative, a friend, an "expert" or an "idiot" of the futility of active investing and the wisdom of passive, index investing. My suggestion to anyone dealing with this problem is to sit that person down (tie them up if necessary) and make them watch this presentation. It's classic Larry. There's nothing particularly new for regular BH's, but it's an opportunity to hear the complete indexing pitch made by Larry to a general audience of non-experts. It can be difficult to get someone to read a book, but watching this presentation with a friend is something you can get done. I highly recommend it. (There's a good 6 minutes of intro that is fairly interesting in itself, but can be jumped ahead of if your quarry is squirming in their chair.)

Angie
That's an excellent suggestion, Angie. If they still want to try their hand at market timing or active management after listening to Larry's research-based presentation, you've done all you can and they deserve what they (don't) get.
Best Regards - Mel | | Semper Fi
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