Paul Merriman was on The Rational Reminder Podcast

Discuss all general (i.e. non-personal) investing questions and issues, investing news, and theory.
Post Reply
Topic Author
bogledogle
Posts: 518
Joined: Wed May 07, 2014 4:34 pm

Paul Merriman was on The Rational Reminder Podcast

Post by bogledogle »

Here's the link:

https://youtu.be/-SPAYhKKDDY

They talk about Jack Bogle and Vanguard a lot. It was a good podcast and time well spent.
Astones
Posts: 236
Joined: Mon Apr 12, 2021 12:48 pm

Re: Paul Merriman was on The Rational Reminder Podcast

Post by Astones »

Yeah, I've seen half of it.
He made the most frequent critique we hear of Bogle, that he shouldn't have been so skeptical about non US markets and factor investing, and I believe it's a fair critique.
YRT70
Posts: 959
Joined: Sat Apr 27, 2019 8:51 am

Re: Paul Merriman was on The Rational Reminder Podcast

Post by YRT70 »

I enjoyed it a lot. Thanks for sharing. Paul has such a great voice. It's easy to listen to him. Interesting to hear a bit about his youth and how that influenced him.
anil686
Posts: 1181
Joined: Thu May 08, 2014 12:33 pm

Re: Paul Merriman was on The Rational Reminder Podcast

Post by anil686 »

Astones wrote: Thu Apr 29, 2021 9:47 pm Yeah, I've seen half of it.
He made the most frequent critique we hear of Bogle, that he shouldn't have been so skeptical about non US markets and factor investing, and I believe it's a fair critique.
I agree with this to some extent. But I will say that international is overblown for sure. In each one of his books, he has recommended a slice to international in his model portfolios. In the Little Book of Common Sense Investing - he explicitly gives model portfolios for each age group and includes total international as an allocation as well as praises TR funds as well diversified including international. Yes in interviews he gives his personal perspective, but his written books have consistently given models for a US investor and ex-US stocks. In Common Sense on Mutual Funds - he devotes a whole chapter on international and discusses why he thinks it is not necessary (significant exposure to international markets via the SP 500 without currency risk) but goes further and discusses if it were him today (at the time in 2009), he would have his international split 50/50 developed and EM.

As far as factor investing goes - I think his bit in the most recent Little Book of Common Sense Investing was really good - he is not saying that one should not do it per se - but with respect to RAFI and Wisdom tree dividend strategies, he wrote that you are just moving the companies weight in the index around a little - they have a 0.97 correlation - so sure - there may be a difference one way or the other - but it is not likely to be much. IOW, using RAFI fundamental indexes will probably be in the same ball park as using a cap weighted index of the same segment - sometimes ahead, sometimes behind. I think his logic here was pretty sound - and it has shown up to be the case so far (of course only a decade + of track records).

I think Mr. Bogle just has a passion that comes through in interviews with everything he talks about and so I think people over-read his comments on these items. I would throw ETFs in the same bucket. He is not a fan of ETFs because of behavioral issues for investors which he explains pretty well in both books and long form interviews. Unfortunately, it is almost always like clips of him saying he does not like ETFs and people run with it. He acknowledges in the Little Book of Common Sense Investing that buying and holding total market ETFs is a sound strategy and may pick up some important tax benefits in comparison to mutual funds - and then implores the reader to buy and hold it and not trade it....

JMO though....
Astones
Posts: 236
Joined: Mon Apr 12, 2021 12:48 pm

Re: Paul Merriman was on The Rational Reminder Podcast

Post by Astones »

anil686 wrote: Fri Apr 30, 2021 8:05 am
JMO though....
People say a lot of things, so it's always possible to spot here and there some quotes where they appear to deviate from their core beliefs. Warren Buffett, for example, is a well known stock picker, yet he also said that he'd buy the S&P 500 without hesitation.

In the case of Bogle, he has been rather clear about these two things.

-- He believes that the total US market is already intrinsically diversified geographically in the global economy, so no need to be exposed to the international stock market.

-- He is skeptical about smart beta. He even has an almost mocking tone when talking about it.

Then yes, I can agree with you that in some instances he might have expressed more nuanced takes than in others, but overall I believe most people agree that the two positions I mentioned were characteristic of his thought.
User avatar
Miriam2
Posts: 3367
Joined: Fri Nov 14, 2014 11:51 am

Re: Paul Merriman was on The Rational Reminder Podcast

Post by Miriam2 »

bogledogle wrote: Here's the link:
https://youtu.be/-SPAYhKKDDY
They talk about Jack Bogle and Vanguard a lot. It was a good podcast and time well spent.
Paul Merriman will be giving a presentation for the Bogleheads tomorrow, Mon. May 3, 2021, at 7:00 pm ET.
This is an online meeting hosted by the Indiana Bogleheads Chapter and open to all Bogleheads.

Paul's topic is: "We're Talking Millions!" :moneybag He will have a 1-1/2 hour presentation followed by a 30 min open Q & A session.

Paul is also a Boglehead 8-) who has made numerous posts over the years explaining his investing philosophy and portfolios. He posts as paul merriman - To find his posts click HERE.

To find a more detailed Indiana meeting agenda, registration, and more about Paul Merriman click HERE.

For the Zoom link - go to the Indiana chapter linked above (you can also ask your Q for Paul). Or email me at SFLBogleheads@gmail.com, or PM me here on the forum.
Topic Author
bogledogle
Posts: 518
Joined: Wed May 07, 2014 4:34 pm

Re: Paul Merriman was on The Rational Reminder Podcast

Post by bogledogle »

Miriam2 wrote: Sun May 02, 2021 2:45 pm
bogledogle wrote: Here's the link:
https://youtu.be/-SPAYhKKDDY
They talk about Jack Bogle and Vanguard a lot. It was a good podcast and time well spent.
Paul Merriman will be giving a presentation for the Bogleheads tomorrow, Mon. May 3, 2021, at 7:00 pm ET.
This is an online meeting hosted by the Indiana Bogleheads Chapter and open to all Bogleheads.

Paul's topic is: "We're Talking Millions!" :moneybag He will have a 1-1/2 hour presentation followed by a 30 min open Q & A session.

Paul is also a Boglehead 8-) who has made numerous posts over the years explaining his investing philosophy and portfolios. He posts as paul merriman - To find his posts click HERE.

To find a more detailed Indiana meeting agenda, registration, and more about Paul Merriman click HERE.

For the Zoom link - go to the Indiana chapter linked above (you can also ask your Q for Paul). Or email me at SFLBogleheads@gmail.com, or PM me here on the forum.
Sweet. Thanks!

Unfortunately, I have a work meeting at this time. Will this be recorded and shared somewhere?
User avatar
Miriam2
Posts: 3367
Joined: Fri Nov 14, 2014 11:51 am

Re: Paul Merriman was on The Rational Reminder Podcast

Post by Miriam2 »

bogledogle wrote:
Miriam2 wrote: Paul Merriman will be giving a presentation for the Bogleheads . . .Mon. May 3, 2021, at 7:00 pm ET.
This is an online meeting hosted by the Indiana Bogleheads Chapter and open to all Bogleheads.

Paul's topic is: "We're Talking Millions!" :moneybag He will have a 1-1/2 hour presentation followed by a 30 min open Q & A session.
Sweet. Thanks!
Unfortunately, I have a work meeting at this time. Will this be recorded and shared somewhere?
Yes, it will be recorded and shared - but there's a learning curve to this . . . :mrgreen:
Leesbro63
Posts: 7092
Joined: Mon Nov 08, 2010 4:36 pm

Re: Paul Merriman was on The Rational Reminder Podcast

Post by Leesbro63 »

Great podcast. I still wonder about small cap value. Even if the SCV guys are right in the very long run, Bogle might be "more right" that most investors won't stay the course when SCV underperforms the S&P500 for long periods.
Volando
Posts: 37
Joined: Tue Feb 23, 2021 7:52 pm

Re: Paul Merriman was on The Rational Reminder Podcast

Post by Volando »

I'm curious about what he said about target date funds. He mentioned a study that compared target date fund holders to non-TDF and said that the difference in return was 2.3% a year. Does anyone have any insight on this comment? Is it mainly because of behavioral issues that TDF holders outperformed?
Leesbro63
Posts: 7092
Joined: Mon Nov 08, 2010 4:36 pm

Re: Paul Merriman was on The Rational Reminder Podcast

Post by Leesbro63 »

Volando wrote: Wed May 05, 2021 9:21 am I'm curious about what he said about target date funds. He mentioned a study that compared target date fund holders to non-TDF and said that the difference in return was 2.3% a year. Does anyone have any insight on this comment? Is it mainly because of behavioral issues that TDF holders outperformed?
I think that's what meant, that because target date holders don't have to do anything, they end up 2.3% better because they don't do the inevitable market timing that other rebalancers have to do. But I agree that this needs to be clarified.
Post Reply