Great Rick Ferri Interview

Discuss all general (i.e. non-personal) investing questions and issues, investing news, and theory.
Post Reply
User avatar
High Income Parent
Posts: 153
Joined: Tue Jan 29, 2013 10:11 pm
Location: USA
Contact:

Great Rick Ferri Interview

Post by High Income Parent » Sat Nov 28, 2015 2:42 pm

Just listened to this interview and Mr. Ferri did a wonderful job! I really like the radical personal finance blogger/podcaster Joshua Sheets as well. I think he does a great job of seeking truth in investing and not just regurgitating the status quo or financial talking points. It was nice to listen to on my run this morning.

http://radicalpersonalfinance.com/265-p ... solutions/
Children are not a distraction from more important work. They are the most important work. | | C. S. Lewis

User avatar
Leif
Posts: 2186
Joined: Wed Sep 19, 2007 4:15 pm

Re: Great Rick Ferri Interview

Post by Leif » Sat Nov 28, 2015 3:37 pm

The title is "Why Passive Investing and Index Funds are the Only Right Way to Invest: Interview with Rick Ferri from Portfolio Solutions", but Rick says not always. He mentions a High Yield (sounds like Vanguard) as a low cost actively managed fund. He also mentioned another fund (I think probably DFA) that provides better value exposure even though it has a higher expense ratio and is actively managed.

Around 10 minutes into the interview there is a lot a loud background noise. Too bad, although it gets better later. He debunks Mr. Sheats (the interviewer) idea that the bond market is not efficient and actively managed can out perform.

Rick does a great job as always. I was very surprised when Rick said he is 100% equity.
Investors should diversify across many asset-classes so that whatever happens, we will not have all our investments in underperforming asset classes and thereby fail to meet our goals-Taylor Larimore

User avatar
investorguy1
Posts: 543
Joined: Mon Nov 24, 2014 7:13 pm

Re: Great Rick Ferri Interview

Post by investorguy1 » Sat Nov 28, 2015 8:03 pm

Leif wrote:The title is "Why Passive Investing and Index Funds are the Only Right Way to Invest: Interview with Rick Ferri from Portfolio Solutions", but Rick says not always. He mentions a High Yield (sounds like Vanguard) as a low cost actively managed fund. He also mentioned another fund (I think probably DFA) that provides better value exposure even though it has a higher expense ratio and is actively managed.

Around 10 minutes into the interview there is a lot a loud background noise. Too bad, although it gets better later. He debunks Mr. Sheats (the interviewer) idea that the bond market is not efficient and actively managed can out perform.

Rick does a great job as always. I was very surprised when Rick said he is 100% equity.


He says the active High Yield fund is better because it has more holding and is lower cost than the index funds that are available. In others words he is saying the "active" fund is a better representation of the market at a lower cost which is the job of an index fund. Also when it comes to value he says that there are different ways of measuring value. Rick says that the other fund ( I guess DFA) Is a more accurate or more "Value" like. In both cases if there was a passive fund that had as many holdings and was at as low a cost or lower he would go with the index Rick just said at this point such products aren't available.

With his 100% equity comment he also mentioned that he has 3 or more pensions and social security. That would be quite different than someone without all those pensions being 100% equity. I also imagine he would have enough income to live off of even if the markets crashed and stayed that way for a decade or more.

User avatar
friar1610
Posts: 1013
Joined: Sat Nov 29, 2008 9:52 pm
Location: MA South Shore

Re: Great Rick Ferri Interview

Post by friar1610 » Sat Nov 28, 2015 9:28 pm

Well, he is/was a reserve officer in the USMC, so that's one pension (and government-provided medical care) at age 60 or 62 (forget which.)
Friar1610

User avatar
Leif
Posts: 2186
Joined: Wed Sep 19, 2007 4:15 pm

Re: Great Rick Ferri Interview

Post by Leif » Sat Nov 28, 2015 11:03 pm

investorguy1 wrote:He says the active High Yield fund is better because it has more holding and is lower cost than the index funds that are available.

Yes, I got that and I agree. Just commenting on the interview title (from the interviewer, not Rick) and some of Rick's comments.

investorguy1 wrote:With his 100% equity comment he also mentioned that he has 3 or more pensions and social security. That would be quite different than someone without all those pensions being 100% equity. I also imagine he would have enough income to live off of even if the markets crashed and stayed that way for a decade or more.

Yes, I got that as well. However what did Rick say? He is in his late 50s? 100% equity is high even with SS, pensions, etc. But of course he knows his risk tolerance. It was news to me. Even many think 80% is the highest one should hold in equities. I do have my daughter at 100% equities, but she is in her 20s.
Investors should diversify across many asset-classes so that whatever happens, we will not have all our investments in underperforming asset classes and thereby fail to meet our goals-Taylor Larimore

User avatar
abuss368
Posts: 11670
Joined: Mon Aug 03, 2009 2:33 pm
Location: Where the water is warm, the drinks are cold, and I don't know the names of the players!

Re: Great Rick Ferri Interview

Post by abuss368 » Wed Dec 02, 2015 3:03 pm

Awesome interview!

Thanks Rick.
John C. Bogle: "You simply do not need to put your money into 8 different mutual funds!" | | Disclosure: Three Fund Portfolio + U.S. & International REITs

pascalwager
Posts: 906
Joined: Mon Oct 31, 2011 8:36 pm

Re: Great Rick Ferri Interview

Post by pascalwager » Wed Dec 02, 2015 4:22 pm

Leif wrote:
investorguy1 wrote:He says the active High Yield fund is better because it has more holding and is lower cost than the index funds that are available.

Yes, I got that and I agree. Just commenting on the interview title (from the interviewer, not Rick) and some of Rick's comments.

investorguy1 wrote:With his 100% equity comment he also mentioned that he has 3 or more pensions and social security. That would be quite different than someone without all those pensions being 100% equity. I also imagine he would have enough income to live off of even if the markets crashed and stayed that way for a decade or more.

Yes, I got that as well. However what did Rick say? He is in his late 50s? 100% equity is high even with SS, pensions, etc. But of course he knows his risk tolerance. It was news to me. Even many think 80% is the highest one should hold in equities. I do have my daughter at 100% equities, but she is in her 20s.


His pensions, SS (and wife's), and 2% dividends are his liability-matching/exceeding portfolio. The 100% stocks aren't high because they comprise his risky portfolio and can be sold at a loss to satisfy a desire (rather than a need). W. Bernstein also refers to risk portfolios that are 100% stocks.

User avatar
Leif
Posts: 2186
Joined: Wed Sep 19, 2007 4:15 pm

Re: Great Rick Ferri Interview

Post by Leif » Wed Dec 02, 2015 5:27 pm

pascalwager wrote:
His pensions, SS (and wife's), and 2% dividends are his liability-matching/exceeding portfolio. The 100% stocks aren't high because they comprise his risky portfolio and can be sold at a loss to satisfy a desire (rather than a need). W. Bernstein also refers to risk portfolios that are 100% stocks.

Of course asset allocation is a personal decision based on a number of factors. My daughter is in her 20s and I have her at 100% equities. I think 100% is high at Rick's age, but others may disagree. I believe in the "If you've won the game..." mantra.
Investors should diversify across many asset-classes so that whatever happens, we will not have all our investments in underperforming asset classes and thereby fail to meet our goals-Taylor Larimore

User avatar
Rick Ferri
Posts: 8202
Joined: Mon Feb 26, 2007 11:40 am
Location: Vagabond, USA, Twitter: @Rick_Ferri
Contact:

Re: Great Rick Ferri Interview

Post by Rick Ferri » Wed Dec 02, 2015 6:23 pm

Thanks for posting this interview. I enjoyed talking with Jousha. He is a bright and talented young man whose primary interest is uncovering truths that help others. My kind of guy!

There is another thread going on discussing my 100% allocation to equity. I don't say a whole lot more in that thread than what's been covered here, but you might want to check it out.

Rick Ferri
The views expressed by Rick Ferri are strictly his own as a private investor and author and do not reflect the views of any entity or other persons.

User avatar
randomizer
Posts: 621
Joined: Sun Jul 06, 2014 3:46 pm

Re: Great Rick Ferri Interview

Post by randomizer » Thu Jul 21, 2016 9:14 am

Bumping this one as I just listened to this one last night. Definitely a great discussion and worth listening to. Rick does a fantastic job of distilling all this down to its essence.

User avatar
Rick Ferri
Posts: 8202
Joined: Mon Feb 26, 2007 11:40 am
Location: Vagabond, USA, Twitter: @Rick_Ferri
Contact:

Re: Great Rick Ferri Interview

Post by Rick Ferri » Thu Jul 21, 2016 6:09 pm

Thanks!

Rick Ferri
The views expressed by Rick Ferri are strictly his own as a private investor and author and do not reflect the views of any entity or other persons.

User avatar
abuss368
Posts: 11670
Joined: Mon Aug 03, 2009 2:33 pm
Location: Where the water is warm, the drinks are cold, and I don't know the names of the players!

Re: Great Rick Ferri Interview

Post by abuss368 » Fri Jul 22, 2016 8:32 am

This is a little old but you are right it was a good interview. I would like to see a current interview from Rick and his investment thoughts!
John C. Bogle: "You simply do not need to put your money into 8 different mutual funds!" | | Disclosure: Three Fund Portfolio + U.S. & International REITs

RadAudit
Posts: 2634
Joined: Mon May 26, 2008 10:20 am
Location: Second star on the right and straight on 'til morning

Re: Great Rick Ferri Interview

Post by RadAudit » Fri Jul 22, 2016 2:59 pm

abuss368 wrote:This is a little old but you are right it was a good interview. I would like to see a current interview from Rick and his investment thoughts!


Don't know if this is what you want; but, look here. viewtopic.php?f=10&t=195853&newpost=2987680
FI is the best revenge. LBYM. Invest the rest. Stay the course.

Post Reply