Rick Ferri on the Rational Reminder Podcast

[Rick Ferri]

Benjamin Felix and Cameron Passmore hosted me as their guest on the "Rational Reminder" podcast for Canadian investors. The topics we talked about were generic to investors in all countries.

Rational Reminder with guest Rick Ferri

Enjoy!
Rick

[DecumulatorDoc]

Thanks Rick. Listening now. Had better luck with this link than the itunes link:
https://www.pwlcapital.com/the-rational ... -investor/

[highercall]

Agree. itunes link didn't work for me either. thanks

[Rick Ferri]

The link is fixed. Thanks!

[pkcrafter]

Great interview Rick!


Paul

[DecumulatorDoc]

Enjoyed it as well. Love thinking back over my investment career and without a doubt I have gone through each of Rick's 4 stages of investing. About 25 years of darkness, then enlightenment thanks particularly to the Bogleheads website and books like All About Asset Allocation and Little Book of Common Sense Investing. Yes I had my complex stage, but pretty quickly transitioned to simplicity and love it. Thanks Rick and Jack.

[AHTFY]

Thanks for letting us know about this.

Has anyone been listening to this podcast? Is it worthwhile?

[Rick Ferri]

Thanks for letting us know about this.

Has anyone been listening to this podcast? Is it worthwhile?

Of course it is!

[Leesbro63]

Enjoyed it as well. Love thinking back over my investment career and without a doubt I have gone through each of Rick's 4 stages of investing. About 25 years of darkness, then enlightenment thanks particularly to the Bogleheads website and books like All About Asset Allocation and Little Book of Common Sense Investing. Yes I had my complex stage, but pretty quickly transitioned to simplicity and love it. Thanks Rick and Jack.

I’m too lazy to listen (right now), but would love to hear these 4 stages summarized as part of this thread.

[Rick Ferri]

The Education of an Index Investor

Born in darkness
Attracted by shiny objects. Does what others do. Not familiar with benchmarking. No clue about fees. Don't really know what index funds are. Thinks the Dow Jones Industrial Average is the market.

Finds indexing enlightenment
Discovers what indices are and what index funds are. Realizes their portfolio habitually underperforms appropriate benchmarks. Gets that "fees matter." Aha! moment when they see index funds as the path forward.

Overcomplicates everything
Consumes mass quantities of books, articles and all Bogleheads stuff. Searches for the "optimal" asset allocation, most efficient tax strategy, and perfect funds in every asset class. Believes factor investing is overly important. Concerned if they don't have access to DFA funds. Tweek, tweek, tweek...

Embraces simplicity
Realizes most of what they have been worrying about isn't going to make one bit of difference in their portfolio. Understands what is important and what's not (I call it knowing what's the cake and what's the flavor of the icing on the cake). Get's the portfolio back to basics. Buys a few broad market index funds and then fugetaboutit! Learns to spend idle time fishing, golfing, playing or anything not related to investing.

Rick Ferri

[Leesbro63]

Thank you. Excellent. This pretty much was my path.

[gmaynardkrebs]

..Buys a few broad market index funds and then fugetaboutit! Learns to spend idle time fishing, golfing, playing or anything not related to investing.

Absolutely, because Wall St. so much has our best interests in mind -- not. But if going fishing, etc, gets a person what he wants out of life, who am I or anyone to tell her otherwise.

[abuss368]

The Education of an Index Investor

Born in darkness
Attracted by shiny objects. Does what others do. Not familiar with benchmarking. No clue about fees. Don't really know what index funds are. Thinks the Dow Jones Industrial Average is the market.

Finds indexing enlightenment
Discovers what indices are and what index funds are. Realizes their portfolio habitually underperforms appropriate benchmarks. Gets that "fees matter." Aha! moment when they see index funds as the path forward.

Overcomplicates everything
Consumes mass quantities of books, articles and all Bogleheads stuff. Searches for the "optimal" asset allocation, most efficient tax strategy, and perfect funds in every asset class. Believes factor investing is overly important. Concerned if they don't have access to DFA funds. Tweek, tweek, tweek...

Embraces simplicity
Realizes most of what they have been worrying about isn't going to make one bit of difference in their portfolio. Understands what is important and what's not (I call it knowing what's the cake and what's the flavor of the icing on the cake). Get's the portfolio back to basics. Buys a few broad market index funds and then fugetaboutit! Learns to spend idle time fishing, golfing, playing or anything not related to investing.

Rick Ferri

In my opinion this is one of the best summaries (if not the best) regarding the path and evolution of many investors! First time I read it I could not believe it as I easily recalled traveling this journey personally.

[moneyman11]

Embarrassingly accurate summary of my own investing journey.

[Rick Ferri]

Embarrassingly accurate summary of my own investing journey.

Not embarrassing! Most Bogleheads are still working things out. Just read the posts on the Board. So many are hooked on finding perfection, "Should I have 14% in emerging markets or 13%?"

Rick Ferri

[abuss368]

Embarrassingly accurate summary of my own investing journey.

Not embarrassing! Most Bogleheads are still working things out. Just read the posts on the Board. So many are hooked on finding perfection, "Should I have 14% in emerging markets or 13%?"

Rick Ferri

Very true. This is one of the reasons (the older I get) about the need and purpose of portfolios that include a lot of funds. Warren Buffett has long said to pick a few Index funds.

[Rick Ferri]

Jack Bogle also.

[Leesbro63]

For me another stumble toward indexing was market timing. I subscribed to the “Telephone Switch Newsletter”, in 1988, that basically had you in and out of the market based on a 200 day moving average. After years of getting whipsawed and underperforming the market (but still “making money”, so I thought), the Asian Financial Crisis of 1997 had me again, twice, in the wrong side. That’s when I found the “Diehards” forum on Morningstar and the “aha” light bulb went off.