Rick Ferri on the Rational Reminder Podcast

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Rick Ferri on the Rational Reminder Podcast

Post by Rick Ferri »

[Thread updated in 2021, see below --admin LadyGeek]

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
Last edited by Rick Ferri on Thu Feb 14, 2019 1:58 pm, edited 1 time in total.
The Education of an Index Investor: born in darkness, finds indexing enlightenment, overcomplicates everything, embraces simplicity.
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Re: Rick Ferri on the Rational Reminder Podcast

Post by DecumulatorDoc »

Thanks Rick. Listening now. Had better luck with this link than the itunes link:
https://www.pwlcapital.com/the-rational ... -investor/
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Re: Rick Ferri on the Rational Reminder Podcast

Post by highercall »

Agree. itunes link didn't work for me either. thanks
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Re: Rick Ferri on the Rational Reminder Podcast

Post by Rick Ferri »

The link is fixed. Thanks!
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Re: Rick Ferri on the Rational Reminder Podcast

Post by pkcrafter »

Great interview Rick!


Paul
When times are good, investors tend to forget about risk and focus on opportunity. When times are bad, investors tend to forget about opportunity and focus on risk.
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Re: Rick Ferri on the Rational Reminder Podcast

Post by 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.
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Re: Rick Ferri on the Rational Reminder Podcast

Post by AHTFY »

Thanks for letting us know about this.

Has anyone been listening to this podcast? Is it worthwhile?
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Re: Rick Ferri on the Rational Reminder Podcast

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AHTFY wrote: Thu Feb 14, 2019 9:14 pm Thanks for letting us know about this.

Has anyone been listening to this podcast? Is it worthwhile?
Of course it is! :D
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Re: Rick Ferri on the Rational Reminder Podcast

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DecumulatorDoc wrote: Thu Feb 14, 2019 5:16 pm 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.
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Re: Rick Ferri on the Rational Reminder Podcast

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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
Last edited by Rick Ferri on Thu Feb 14, 2019 10:10 pm, edited 1 time in total.
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Re: Rick Ferri on the Rational Reminder Podcast

Post by Leesbro63 »

Thank you. Excellent. This pretty much was my path.
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Re: Rick Ferri on the Rational Reminder Podcast

Post by gmaynardkrebs »

Rick Ferri wrote: Thu Feb 14, 2019 9:53 pm..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.
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Re: Rick Ferri on the Rational Reminder Podcast

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Rick Ferri wrote: Thu Feb 14, 2019 9:53 pm 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.
John C. Bogle: “Simplicity is the master key to financial success."
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Re: Rick Ferri on the Rational Reminder Podcast

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Embarrassingly accurate summary of my own investing journey.
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Re: Rick Ferri on the Rational Reminder Podcast

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moneyman11 wrote: Fri Feb 15, 2019 1:19 pm 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
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Re: Rick Ferri on the Rational Reminder Podcast

Post by abuss368 »

Rick Ferri wrote: Fri Feb 15, 2019 5:07 pm
moneyman11 wrote: Fri Feb 15, 2019 1:19 pm 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.
John C. Bogle: “Simplicity is the master key to financial success."
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Re: Rick Ferri on the Rational Reminder Podcast

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Jack Bogle also.
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Re: Rick Ferri on the Rational Reminder Podcast

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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.
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Interview with Rick Ferri

Post by Rick Ferri »

[Thread merged into here --admin LadyGeek]

In 2019, I did a 30-minute interview on a Canadian podcast called Rational Reminder. I thought it was a good one. You may find it interesting:

Rational Reminder with Rick Ferri

Enjoy!
The Education of an Index Investor: born in darkness, finds indexing enlightenment, overcomplicates everything, embraces simplicity.
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Re: Interview with Rick Ferri

Post by Gaston »

This was good, Thx.
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Re: Interview with Rick Ferri

Post by jason2459 »

Thanks Rick. I haven't listened to this one yet. Always nice getting a little gold nugget like this.
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Re: Interview with Rick Ferri

Post by Peculiar_Investor »

Rick Ferri wrote: Wed Jun 09, 2021 8:46 pm In 2019, I did a 30-minute interview on a Canadian podcast called Rational Reminder. I thought it was a good one. You may find it interesting:

Rational Reminder with Rick Ferri

Enjoy!
Deja vu all over again? viewtopic.php?t=272912
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Re: Interview with Rick Ferri

Post by tj »

Peculiar_Investor wrote: Thu Jun 10, 2021 8:08 am
Rick Ferri wrote: Wed Jun 09, 2021 8:46 pm In 2019, I did a 30-minute interview on a Canadian podcast called Rational Reminder. I thought it was a good one. You may find it interesting:

Rational Reminder with Rick Ferri

Enjoy!
Deja vu all over again? viewtopic.php?t=272912
An irrational reminder? :sharebeer
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Re: Interview with Rick Ferri

Post by UpperNwGuy »

Good podcast! Thanks, Rick!
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Re: Interview with Rick Ferri

Post by friar1610 »

I’ve been listening to Rational Reminder regularly for about 6 months but had not realized there was a 2019 broadcast with Rick. Good one and well worth a listen!
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Re: Rick Ferri on the Rational Reminder Podcast

Post by LadyGeek »

I merged Rick Ferri's update back into the original thread.
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Re: Rick Ferri on the Rational Reminder Podcast

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Some discussions are timeless. This is one of those. It is just as relevant today as it was two years ago.

Excellent podcast!
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Re: Rick Ferri on the Rational Reminder Podcast

Post by Picasso »

This was a good one!
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Re: Rick Ferri on the Rational Reminder Podcast

Post by markcoop »

I would think many of us have been down that journey. I place myself at 3.5 at the moment. Looking at those 4 steps, it sounds to me that step 3 is the only controversial one. Step 1 you don't have a choice about. Step 2 is the positive "aha" moment. At step 4 one realizes that the optimal life path is to keep finances simple. So how good/bad step 3 is clearly varies from person to person. For me, too complicated is not good. However, a few strategies where we, at least attempt to, optimize a part of our financial lives does pay off. Planning for retirement is one that comes to mind. Something like factor investing, how deeply you go down that path, is certainly debatable. I'm a SV tilt guy. Not just because of the history of SV, but also because it balanced with my job at a large, somewhat growthy, company. I also think some people enjoy the complication and the puzzle but later in life decide they had enough of it. Some probably never leave the complication.

I really did enjoy reading those 4 steps since I certainly have been in each step.

Thank you
Mark
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