Money For the Rest of Us

Berkshire Hathaway doesn't pay a dividend, its cash pile keeps growing, and Buffet says it's gotten too big to make acquisitions that can impact the company. Meanwhile, utility ETFs have a steady 3.5% dividend yield. Which will be the better-performing investment going forward?

Topics covered include:

• How has Berkshire Hathaway performed relative to the S&P 500 Index and other active managers
• Why Warren Buffett believes Berkshire's electric utility holdings were a mistake
• Why California has some of the highest utility rates in the U.S.
• Why Berkshire Hathaway will eventually need to pay a dividend even though it doesn't currently
• Going forward, will it be more profitable to invest in Berkshire Hathaway, a utility ETF, or an index fund

Sponsors

Shopify - Sign up for a $1 per month trial period

NetSuite – Get your free KPI checklist

Insiders Guide Email Newsletter

Get our free Investors' Checklist when you sign up for the free Money for the Rest of Us email newsletter

Our Premium Products

Asset Camp

Money for the Rest of Us Plus

Show Notes

Berkshire Hathaway 2023 Shareholder Letter

The Man Preparing for a Berkshire Hathaway Without Warren Buffett by Justin Baer—The Wall Street Journal

Warren Buffett admits Berkshire Hathaway’s days of ‘eye-popping’ gains are over by Eric Platt—The Financial Times

Active vs Passive Investment Management Barometer Report—Morningstar

Buffett sounds wildfire alarm as utilities industry enters new era by Eric Platt and Myles McCormick—The Financial Times

Paying for Electricity in California: How Residential Rate Design Impacts Equity and Electrification—Next10

Investments Mentioned

Berkshire Hathaway Inc Class B (BRK.B)

Vanguard Utilities ETF (VPU)

Related Episodes

466: Does Dividend Investing Still Work?

463 Plus: Model Portfolios, UK versus US Valuations, MCI Premium, and MFD Proxy Battle

444: Natural Disasters: Are They Truly Increasing? 

242: Should You Let Warren Buffett Manage Your Money?

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Japan's stock market recently exceeded the all-time high first set in December 1989. That's 34 years of zero price appreciation for the stock market. What drove this lackluster performance, will it continue, and what can we learn from it?

Topics covered include:

• How big was Japan's stock bubble, and how much did it contribute to the stock market's underperformance over the past three decades
• How do Japan's demographic trends impact its economic challenges, and what are the solutions
• Why Japan's houses are built to depreciate in value
• What lessons can we learn from Japan's extended bear market

Sponsors

Monarch Money – Get an extended 30-day free trial

Insiders Guide Email Newsletter

Get our free Investors' Checklist when you sign up for the free Money for the Rest of Us email newsletter

Our Premium Products

Asset Camp

Money for the Rest of Us Plus

Show Notes

Japan’s Nikkei 225 index eclipses record high after 34 years by Leo Lewis—The Financial Times

Investors eye further gains after Nikkei breaks through 1989 high by Leo Lewis and Kana Inagaki—The Financial Times

Related Episodes

235: What If Home Prices Always Declined

178: Japan and the Impact of A Shrinking Population

73 Plus: Investing In Japan

38 Plus: Time Wealth and Japan

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

How the ETF market is changing, why ETFs should be your preferred investment vehicle, and how to analyze ETFs to generate better investment performance.

Topics covered include:

• How large have fund flows been away from active mutual funds into ETFs
• How big are the largest ETF families and how has their market share grown
• Why the rise of active ETFs blurs the distinction between active and passive investing
• Why there doesn't appear to be an indexing price bubble, but the rise of passive investing has impacted volatility and decreased stock price informativeness
• A framework for how to analyze markets and select ETFs for your portfolio

Sponsors

Long Angle is a private community of 2,500 very high net worth investors who leverage their collective expertise and scale to access and underwrite some of the world’s best alternative asset investments. Learn more here.

NetSuite – Get your free KPI checklist

Insiders Guide Email Newsletter

Get our free Investors' Checklist when you sign up for the free Money for the Rest of Us email newsletter

Our Premium Products

Asset Camp

Money for the Rest of Us Plus

Show Notes

Global Fund Flows Dominated by Fixed-Income and ETFs—Morningstar

It’s Official: Passive Funds Overtake Active Funds by Adam Sabban—Morningstar

ETF Issuer League Tables—VettaFi

Global ETF Market Facts: three things to know from Q3 2023 by Samara Cohen—iShares

Rise of Passive Investing - Effects on Price Level, Market Volatility, and Price Informativeness by Pawel Bednarek—SSRN

Investments Mentioned

SPDR® S&P 500® ETF Trust (SPY)

JPMorgan Equity Premium Income ETF (JEPI)

Avantis US Small Cap Value ETF (AVUV)

Related Episodes

426: Which is Best – Active or Passive, ETFs or Funds?

321: How to Analyze Complex Investments

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Stocks that grow their dividends have outperformed non-dividend-paying stocks over the long-term, but not in the past 5, 10, and 20 years. Why are non-dividend paying stocks outperforming dividend growers, and will it continue?

Topics covered include:

• What message do companies say when they initiate, grow, or cut their dividend
• What is dividend smoothing
• How have dividend payers performed relative to non-dividend payers
• Why have non-dividend payers, which are primarily growth stocks, outperformed dividend payers
• How the payout ratio and return on equity impact dividend strategies
• What are reasons to include dividend strategies in your portfolio

Sponsors

LinkedIn Jobs – Use this link to post your job for free on LinkedIn Jobs

Betterment - the automated investing and savings app

Insiders Guide Email Newsletter

Get our free Investors' Checklist when you sign up for the free Money for the Rest of Us email newsletter

Our Premium Products

Asset Camp

Money for the Rest of Us Plus

Show Notes

The dividend puzzle by Fischer Black—The Journal of Portfolio Management

Can Dividend Investing Rise From the Dead? by Jon Sindreu—The Wall Street Journal

Einhorn Says Markets ‘Fundamentally Broken’ By Passive, Quant Investing by Matthew Griffin—Bloomberg

Your Mutual Fund Stinks. Can This Wall Street Invention Change That? by Jason Zweig—The Wall Street Journal

Asset Camp

Investments Mentioned

WisdomTree U.S. SmallCap Quality Dividend Growth Fund (DGRS)

WisdomTree Emerging Markets High Dividend ETF (DEM)

Vanguard Dividend Appreciation ETF (VIG)

iShares Core S&P 500 ETF (IVV)

Related Episodes

429: Which Inflation Protection Strategies Worked and Which Didn’t? 

342: Is Another Great Inflation Coming?

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Humans are wired to feel regret. Here's how to learn from financial regret to become a better investor.

Topics covered include:

• What cognitive biases make feelings of financial regret unavoidable
• We analyze two regret case studies - one from David and one from a Plus member
• Why do we avoid big regrets but manage through small ones
• Five cognitive tricks to help manage financial regrets
• 
  

Sponsors

NetSuite – Get your free KPI checklist

Long Angle is a private community of 2,500 very high net worth investors who leverage their collective expertise and scale to access and underwrite some of the world’s best alternative asset investments. Learn more here.

Money for the Rest of Us listener survey

Insiders Guide Email Newsletter

Get our free Investors' Checklist when you sign up for the free Money for the Rest of Us email newsletter

Our Premium Products

Asset Camp

Money for the Rest of Us Plus

Show Notes

Fooled by Randomness: The Hidden Role of Chance in Life and in the Markets by Nassim Nicholas Taleb—Penguin Random House

Related Content

448: Where Are Interest Rates Headed Next? Insights from the Jackson Hole Symposium

408: Is Success Due to Hard Work, Talent, or Luck?

What Is Risk vs Uncertainty?

53: Should You Invest In Bitcoin?

Investments Mentioned

Vanguard Long-Term Bond ETF (BLV)

Vanguard Extended Duration Trs ETF (EDV)

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Professional investors and other market participants are lousy at forecasting interest rates. Here are three more options to lock in higher yields today.

Topics covered include:

• The risk of buying long-term bonds and ETFs to benefit from falling yields
• How volatility drag has impacted a long-term bond ETF like TLT
• Why interest rates won't go up just because the government issues more bonds
• How CDs, fixed annuities, and zero-coupon bonds work
• We compare and contrast the seven fixed-income options reviewed in this two-part series

Sponsors

Monarch Money – Get an extended 30-day free trial

Money for the Rest of Us listener survey

Insiders Guide Email Newsletter

Get our free Investors' Checklist when you sign up for the free Money for the Rest of Us email newsletter

Our Premium Products

Asset Camp

Money for the Rest of Us Plus

Show Notes

Investors may be getting the Federal Reserve wrong, again—The Economist

Today's Best Multi-Year Guaranteed Annuities—Immediate Annuities

Zero-Coupon Treasuries Flew Off Shelves During October Yield Surge by Elizabeth Stanton—Bloomberg

Investments Mentioned

iShares 20+ Year Treasury Bond ETF (TLT)

Invesco BulletShares 2029 Corporate Bond ETF (BSCT)

Related Episodes

463: How to Lock in Higher Yields in Case Interest Rates Fall

418: Bond Investing Masterclass

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

With cash yields expected to fall, here's how you can keep your portfolio income elevated by purchasing longer-term individual bonds and bullet ETFs

Topics covered include:

• How future short-term interest rates, inflation expectations, and term premiums impact long-term interest rates
• How each of those rate drivers contributed to the close to 1% drop in interest rates in the past three months
• How yield to maturity is our guide to locking in a fixed return using individual bonds or bullet ETFs
• How bullet ETFs work and what are some examples
• What are callable bonds and how to analyze them
• How to analyze municipal bonds
• Why we might want to lock in higher yields today

Sponsors

Betterment - the automated investing and savings app

Money for the Rest of Us listener survey

Insiders Guide Email Newsletter

Get our free Investors' Checklist when you sign up for the free Money for the Rest of Us email newsletter

Our Premium Products

Asset Camp

Money for the Rest of Us Plus

Show Notes

Term Premium on a 10 Year Zero Coupon Bond—FRED Economic Data

Investments Mentioned

Vanguard Total Bond Market ETF (BND)

Invesco BulletShares 2030 Corporate Bond ETF (BCSU)

iShares iBonds Dec 2026 Term Trust ETF (IBTG)

Invesco BulletShares 2031 High Yield Corporate Bond ETF (BSJV)

Related Episodes

455: Easier Investing, Richer Life: TIPS Ladders to Annuities

453: The Price of Money – 700 Years of Falling, Can Interest Rates Keep Rising?

452: Beyond Stocks: The Allure and Strategy of Credit Investments

448: Where Are Interest Rates Headed Next? Insights from the Jackson Hole Symposium

418: Bond Investing Masterclass

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

We explore reasons for buying Bitcoin using one of the new Bitcoin ETFs. We also consider the risks.

Topics covered include:

• Why the SEC finally decided to approve spot Bitcoin ETFs
• What are the fees and structure of these new Bitcoin ETFs
• How Bitcoin is similar and different from the fiat money system
• Where Bitcoin fits in an investment portfolio

Sponsors

Long Angle is a private community of 2,500 very high net worth investors who leverage their collective expertise and scale to access and underwrite some of the world’s best alternative asset investments. Learn more here.

NetSuite – Get your free KPI checklist

Insiders Guide Email Newsletter

Get our free Investors' Checklist when you sign up for the free Money for the Rest of Us email newsletter

Our Premium Products

Asset Camp

Money for the Rest of Us Plus

Show Notes

Statement on the Approval of Spot Bitcoin Exchange-Traded Products - SEC

Coinbase at the Center of Bitcoin ETF Draws Envy and Risks - Bloomberg

Federal Reserve Balance Sheet

Related Episodes

362: Should You Invest in a Bitcoin ETF?

355: Which Money Is Crazier: The U.S. Dollar or Bitcoin?

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The intricate dance between profession, risk, lifestyle, and luck in determining how net worth grows.

Topics covered include:

• The various factors that shape the growth of net worth, including professional choices, risk tolerance, and lifestyle decisions.
• David Stein's personal account of how these elements influenced the trajectory of his financial growth.
• Insights into the range of net worth increases observed in 2023, driven by the performance of financial markets.
• The importance of focusing on one's output quality and personal journey of wealth creation, rather than fixating on comparisons with others' net worth.

Sponsors

Shopify - Sign up for a $1 per month trial period

LinkedIn Jobs – Use this link to post your job for free on LinkedIn Jobs

Insiders Guide Email Newsletter

Get our free Investors' Checklist when you sign up for the free Money for the Rest of Us email newsletter

Our Premium Products

Asset Camp

Money for the Rest of Us Plus

Show Notes

Managing Oneself by Peter F. Drucker—Harvard Business Review

Soloing: Realizing Your Life's Ambition by Harriet Rubin—HarperCollins

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

The pros and cons of investing your retirement assets 100% in equity, including half in international stocks. Why the 4% spending rule is too aggressive.

• Why historical asset class return studies that use only U.S. data are biased
• How researchers build a broader database to study retirement outcomes and spending rates
• How a 100% stock portfolio performed compared to balanced portfolios and target date funds
• Why investors should have half their assets in international stocks
• Why a 4% spending rule is too high, and what is the alternative

Sponsor

NetSuite – Get your free KPI checklist

Insiders Guide Email Newsletter

Get our free Investors' Checklist when you sign up for the free Money for the Rest of Us email newsletter

Our Premium Products

Asset Camp

Money for the Rest of Us Plus

Show Notes

Beyond the Status Quo: A Critical Assessment of Lifecycle Investment Advice by Aizhan Anarkulova, Scott Cederburg, and Michael S. O'Doherty—SSRN

The Safe Withdrawal Rate: Evidence from a Broad Sample of Developed Markets by Aizhan Anarkulova, Scott Cederburg, Michael S. O'Doherty, and Richard W. Sias—SSRN

Related Episodes

421: Beware of Survivorship Bias When Investing

326: The New Math of Retirement Spending and Investing

254: Should You Be 100% Invested In Stocks?

250: Investing Rule One: Avoid Ruin

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

We close out 2023 by answering your questions on active vs passive management, market timing, investing for status, what we learned from Charlie Munger, thoughts on a coming recession, worst investment mistakes, recent books that changed us, and more.  

Sponsors

Madison Trust Self-Directed IRA - Go Here to Learn More and Get Your $100 Off Promo Code

Delete Me – Use code David20 to get 20% off

Insiders Guide Email Newsletter

Get our free Investors' Checklist when you sign up for the free Money for the Rest of Us email newsletter.

Show Notes

How the World Really Works by Vaclav Smil—Viking

The Day the World Stops Shopping by J.B. Mackinnon—Harper Collins

Earth for All: A Survival Guide for Humanity by Sandrine Dixson-Declève, et al—Earth for All

Barbarian Days: A Surfing Life by William Finnegan—Penguin Random House

Tao te Ching: Power for the Peaceful by Lao Tzu (Author) and Marc Mullinax (Translator)—Fortress Press

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Do the impressive returns in public and private markets stem from strategic financial engineering or reflect actual economic growth?

• How corporate profit growth is linked to economic growth, even though corporate profits are more volatile
• How interest rates, tax rates, and stock buybacks influence corporate profits and stock returns
• Why there are fewer publicly traded stocks
• How the increase in leveraged buyouts has impacted the economy
• How private equity funds use financial engineering to boost returns

Sponsors

NetSuite – Get your free KPI checklists

LinkedIn Jobs – Use this link to post your job for free on LinkedIn Jobs

Insiders Guide Email Newsletter

Get our free Investors' Checklist when you sign up for the free Money for the Rest of Us email newsletter

Our Premium Products

Asset Camp

Money for the Rest of Us Plus

Show Notes

US CEOs start to contemplate Trump, round 2 by Rana Foroohar—The Financial Times

End of an Era: The Coming Long-Run Slowdown in Corporate Profit Growth and Stock Returns by Michael Smolyansky—The Federal Reserve

10-Year Stock Market Returns—Crestmont Research

Stock Average—Crestmont Research

Stock EPS Reality—Crestmont Research

What Matters More for Emerging Markets Investors: Economic Growth or EPS Growth? by Jason Hsu Jay Ritter Phillip Wool Yanxiang Zhao—Portfolio Management Research

Nominal Gross Domestic Product for United States—FRED Economic Data

The Secretive Industry Devouring the U.S. Economy by Rogé Karma—The Atlantic

Key Drivers Behind Widespread Adoption Of NAV Financing by Matthew K Kerfoot—Proskauer

The Inevitable Rise of NAV Financing by Patricia Teixeira and Anastasia Kaup—Ropes & Gray

HAVE EXCHANGE-LISTED FIRMS BECOME LESS IMPORTANT FOR THE ECONOMY? by Frederik P. Schlingemann and René M. Stulz—NBER

LBOs Make (More) Companies Go Bankrupt, Research Shows by Alicia McElhaney—Institutional Investor

Leveraged buyouts and financial distress by Brian Ayash and Mahdi Rastad—ScienceDirect

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

One year after the release of ChatGPT, we explore the positive and negative paths AI could take and what individuals can do to assist with a positive outcome.

Topics covered include:

• How David uses AI to increase his personal productivity
• The societal and economic impacts of AI, including its potential to enhance corporate profitability and individual productivity
• Changes at OpenAI's executive level are examined, highlighting a shift in the organization's direction and philosophy
• What is Effective Altruism and why is it so focused on the catastrophic risks of AI
• What are the phases that would lead to a singularity in which AI poses a threat to humanity
• Why AI is still in the early stages, and how should individuals, businesses and regulators treat it at this point

Sponsors

Madison Trust Self-Directed IRA - Go Here to Learn More and Get Your $100 Off Promo Code

Money Pickle – Schedule a free 45-minute video chat with a vetted financial advisor and ask them anything about your financial situation. Go here to schedule your free session.

Insiders Guide Email Newsletter

Get our free Investors' Checklist when you sign up for the free Money for the Rest of Us email newsletter.

Show Notes

Everyday Chaos: Technology, Complexity, and How We're Thriving in a New World of Possibility by David Weinberger—Harvard Business Publishing Education

The economic and market impact of artificial intelligence—Capital Economics

The Fight for the Soul of A.I. by David Brooks—The New York Times

How a Fervent Belief Split Silicon Valley—and Fueled the Blowup at OpenAI by Robert McMillan and Deepa Seetharaman—The Wall Street Journal

A.I. Belongs to the Capitalists Now by Kevin Roose—The New York Times

The ‘AI doomers’ have lost this battle by Benedict Evans—The Financial Times

Effective Altruism

80,000 Hours

What is the AI alignment problem and how can it be solved? by Edd Gent—NewScientist

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

In this bonus episode, David visits with Bill Yount and Becky Heptig of the Catching Up to Fi podcast in a wide-ranging discussion on investing using a systematic checklist approach.

Sponsors

Madison Trust Self-Directed IRA - Go Here to Learn More and Get Your $100 Off Promo Code

LinkedIn Jobs – Use this link to post your job for free on LinkedIn Jobs

Money Pickle – Schedule a free 45-minute video chat with a vetted financial advisor and ask them anything about your financial situation. Go here to schedule your free session.

Masterworks – invest in contemporary art

Masterworks Disclosure:

“net IRR” refers to the annualized internal rate of return net of all fees and costs, calculated from the offering closing date to the sale date. IRR may not be indicative of Masterworks paintings not yet sold, and past performance is not indicative of future results. See important Reg A disclosures: Masterworks.com/cd 

Insiders Guide Email Newsletter

Get our free Investors' Checklist when you sign up for the free Money for the Rest of Us email newsletter.

Show Notes

Catching Up to FI

Money for the Rest of Us book

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

What are the economic and cultural benefits of tourism. What are the downsides to too much tourism. How to find the right balance.

Topics covered include:

• How short-term rentals have changed tourism
• How cities grapple with too many short-term rentals
• What is the outlook for short-term rentals
• How much does tourism contribute to economic output
• How can tourism be harmful and helpful
• The example of Cuba

Sponsors

Madison Trust Self-Directed IRA - Go Here to Learn More and Get Your $100 Off Promo Code

LinkedIn Jobs – Use this link to post your job for free on LinkedIn Jobs

Insiders Guide Email Newsletter

Get our free Investors' Checklist when you sign up for the free Money for the Rest of Us email newsletter.

Show Notes

International tourism revenue, percent of GDP - Country rankings—The Global Economy

U.S. Travel and Tourism Satellite Account for 2017–2021 by Sarah Osborne—Journal of US Bureau of Economic Analysis

2023 Short-Term Rental Mid-Year Outlook—AirDNA

Welcome to Hochatown, the Town Created by Airbnb by Julie Satow—The New York Times

Short-Term Rentals Attract Private Equity Seeking New Asset Class by Sean O'Neill—Skift

As Cuba’s economic crisis deepens, citizens scramble to migrate by any means by Dave Sherwood—The Irish Times

Cuba's worst economic crisis in decades forces people to get creative to survive by Eyder Peralta—NPR

Related Episodes

93: Capitalism, Complexity and Cuba

389: Is Airbnb Intensifying the Housing Crisis?

449: The House of Cards: Evaluating Economic and Financial Warning Signs

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

What are the pros and cons of partially funding retirement expenses with an inflation-indexed bond ladder versus an immediate annuity? There is a big downside to TIPS ladders that many investors don't realize.

Topics covered include:

• Why the stock market is more risky than many people realize
• Is it too late to invest in TIPS as one advisor suggests
• How TIPS and TIPS ladders work
• How immediate annuities work
• The pros and cons of a TIPS ladder versus an immediate annuity

Sponsors

NetSuite – Get your free KPI checklists

Monarch Money – Get an extended 30-day free trial

Insiders Guide Email Newsletter

Get our free Investors' Checklist when you sign up for the free Money for the Rest of Us email newsletter.

Show Notes

Effortless: Make It Easier to Do What Matters Most by Greg McKeown

Essentialism: The Disciplined Pursuit of Less by Greg McKeown

Skin in the Game by Nassim Nicholas Taleb

Worry-Free Investing: A Safe Approach to Achieving Your Lifetime Financial Goals by Zvi Bodie and Michael J. Clowes

Safe Haven: Investing for Financial Storms by Mark Spitznagel

A Complete Guide to Investing in I Bonds and TIPS

TipsLadder

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

We discuss ten rules of thumb for individual investors to consider when saving and investing for and in retirement.

1. Don't use institutional hand-me-downs
2. Stay close to home base
3. Beware of dragon risk
4. Mind your investment seasons
5. Catch the popping corn
6. Watch for market swarms
7. Track the economic winds
8. Follow the traffic lights
9. Diversify your baskets
10. Don't burn your ships

Sponsors

Madison Trust Self-Directed IRA - Go Here to Learn More and Get Your $100 Off Promo Code

Monarch Money – Get an extended 30-day free trial

Insiders Guide Email Newsletter

Get our free Investors' Checklist when you sign up for the free Money for the Rest of Us email newsletter.

Show Notes

How to Invest Money E-book

Related Content

Complete Guide to Mortgage REIT Investing - Money for the Rest of Us

Complete Guide to Equity REIT Investing - Money for the Rest of Us

Episode 451: How Much Should You Invest in Stocks

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Interest rates have been sliding for seven centuries. Dive into the historical forces driving this trend and examine whether the recent interest rate spike is just a blip on the radar.

Topics covered include:

• How the supply of savings and the demand to borrow impact interest rates
• Why have interest rates been falling for over 700 years, and what might have changed recently to propel rates higher
• How lower rates have helped households increase their net worth and reduce their financial vulnerability
• What are some lower-risk ways to take advantage of higher interest rates

Sponsors

Money Pickle – Schedule a free 45-minute video chat with a vetted financial advisor and ask them anything about your financial situation. Go here to schedule your free session.

LinkedIn Jobs – Use this link to post your job for free on LinkedIn Jobs

Insiders Guide Email Newsletter

Get our free Investors' Checklist when you sign up for the free Money for the Rest of Us email newsletter.

Show Notes

The Price of Money Is Going Up, and It’s Not Because of the Fed by Jamie Rush, Martin Ademmer, Maeva Cousin, Tom Orlik, and Rich Miller—Bloomberg

Secular stagnation is not over by Olivier Blanchard—Peterson Institute for International Economics

A big problem looming for bond markets by TOMASZ WIELADEK—The Financial Times

Eight centuries of global real interest rates - Paul Schmelzing - Bank of England

Changes in U.S. Family Finances from 2019 to 2022—The Federal Reserve

A Complete Guide to Investing in I Bonds and TIPS

Related Episodes

448: Where Are Interest Rates Headed Next? Insights from the Jackson Hole Symposium

450: How Higher Interest Rates Alter Our Financial Blueprint

452: Beyond Stocks: The Allure and Strategy of Credit Investments

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Why investing in non-investment grade bonds, leveraged loans, and preferred stocks is potentially more compelling than investing in common stocks at present.

Topics covered include:

• Why Howard Marks told institutional clients to sell stocks and buy high-yield bonds instead
• The contractual agreements comprising bonds, leveraged loans, and preferred stock give them an advantage relative to common stocks
• How preferred equity exhibits attributes of both bonds and common stocks
• What is the expected return and risks for high-yield bonds, leveraged loans, and preferred stock
• How do we invest in these three asset types

Sponsors

Delete Me - Use code David20 to get 20% off- To get 20% off Delete Me go tohttps://joindeleteme.com/david20 and use Code David20

Madison Trust Self-Directed IRA - Go Here to Learn More and Get Your $100 Off Promo Code

Show Notes

Sea Change - Memo by Howard Marks

Further Thoughts on Sea Change - Memo by Howard Marks

Investments Mentioned

SPDR Bloomberg High Yield Bond ETF (JNK)

iShares iBoxx High Yield Corporate Bond ETF (HYG)

Invesco Senior Loan ETF (BKLN)

iShares Preferred Stock ETF (PFF)

Virtus Seix Senior Loan ETF (SEIX)

DoubleLine Flexible Income Fund (DFLEX)

BlackRock Debt Strategies Fund (DSU)

Barings Corporate Investors Fund (MCI)

Related Content

397: How to Invest Based on Cycles

451: How Much Should You Invest in Stocks? The Art of Position Sizing in a Volatile Market

423: A “Safe” 6% Yield: The Case for Investment Grade CLOs

How to Invest in Closed-End Funds

Money for the Rest of Us Closed-End Fund Course

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Our allocation to risky assets should vary based on the expected return, volatility, risk aversion, and how much we can earn risk-free. That means we should be taking less risk right now. Listen to learn why.

Topics covered include:

• Why there are so few billionaires
• Why the hedge fund Long Term Capital Management imploded
• Why how much to invest is more important than where to invest
• How the Merton share formula can assist with determining what percent of our wealth to invest in risky assets
• Why are expected outcomes so much greater than the median outcome and why it matters to our investing

Sponsors

Delete Me - Use code David20 to get 20% off - To get 20% off Delete Me go to https://joindeleteme.com/david20 and use Code David20

Masterworks – invest in contemporary art

Masterworks Disclosure:

“net IRR” refers to the annualized internal rate of return net of all fees and costs, calculated from the offering closing date to the sale date. IRR may not be indicative of Masterworks paintings not yet sold, and past performance is not indicative of future results. See important Reg A disclosures: Masterworks.com/cd 

Insiders Guide Email Newsletter

Get our free Investors' Checklist when you sign up for the free Money for the Rest of Us email newsletter.

Show Notes

How to avoid a common investment mistake - Buttonwood - The Economist

The Missing Billionaires: A Guide to Better Financial Decisions by Victor Haghani and James White

Money For the Rest of Us List of Most Influential Books

Charles Feeney, Who Made a Fortune and Then Gave It Away, Dies at 92 - New York Times

Elm Partners Coin Flip Exercise

Evaluating gambles using dynamics - O. Peters and M. Gell-Mann

Related Content

250: Investing Rule One - Avoid Ruin

Why You Should Rebalance Your Portfolio

196: How to Survive Financially

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.