One of the biggest mistakes investors make is not to diversify sufficiently to virtually eliminate stock or company risk. Paul reads part of two important articles. In “Speculating versus investing: The buying of individual stocks,” Larry Swedroe discusses the reasons owning individual stocks is an approach that requires taking more risk without an additional return. He also lists the reasons investors find it compelling to take this additional return, even though the expected return could be far less than simply owning an index fund. In a related topic, Paul reads from Jeremy Siegel”s 1998 “Valuing growth stocks: Revisiting the Nifty Fifty.” This fascinating article tracks some of the “best stocks” in the world over a 25-year period. He then compares the returns of the Nifty Fifty with the S&P 500, large cap value, small cap blend and small cap value.
Fellow Retirementor Ken Roberts always has a long list of questions for me on his Ken’s Bull and Bears Report. In this interview Ken asks questions about stock performance in a growing economy, how to beat the market, the need for professional advisors, lessons learned from the Trump election, my favorite Bogle quotes and how to be sure an advisor has your best interest in mind. During the interview I surprised myself by noting that Bogle, Buffet and Trump are all losers——as well as myself!
The most common question I get is focused on the likelihood of abnormally low future returns on stocks. This is not only a common question today, it is one of the most common questions investors have after any difficult market period. How can anyone possibly know what happens next? There is always a list of reasons for the market to go up, as well as to go down. The “Death of Equities” is the most famous stock market article ever written.
We are surrounded by people who lie. Experts say we lie on a regular basis, so the fact that our politicians, corporations and those trying to sell us something often lie should not be a surprise. Paul wants investors to search hard for the truth, not just by others but also lies we tell ourselves. He suggests a powerful way to use the smartphone in search of the truth and yes, it could earn you an extra million dollars
Warren Buffet, Peter Lynch, John Bogle and Ben Franklin and more… Paul discusses some of the most meaningful financial quotes and suggests that reviewing such quotes once a year may help you be more committed to and focused on the most important investment basics.This recording was produced for Public Broadcasting Service (PBS) as part of a 2011/12 pledge package. As Paul had not listened to the CD since recording, he was surprised to find he’d used a quote from Donald Trump and said, “I think his quote was very thoughtful and represented an idea that is seldom considered when trying to make a list of the most important investment decisions.”
Examining 88 years of returns and risks of an all-value portfolio, Paul explains why young investors might legitimately consider a 100% all-value portfolio, while the combination of these asset classes should account for only a small part of a retiree’s portfolio.
In this interview with Jimmy Dot Direct & Stan The Annuity Man, Paul discusses the impact of an extra 1/2 percent, loss expectations with different combinations of stocks and bonds, and other topics important for both first-time investors to those getting ready for retirement. For those interested in immediate life annuities, get Stan’s free books on all types of annuities, available at: http://www.stantheannuityman.com/. He offers great information and will not call you.
Paul reviews Clements’ new book, “How to Think About Money,” highlighting key topics from each chapter and encouraging you to purchase this book for any first-time investor… reading it before passing it along. This informative book can motivate first-time investors to increase their savings rate, put more long-term savings into equites and stick to low-cost index funds.
keywords: how to think about money, jonathan clements, first time investing, how to invest, what are index funds, paul merriman podcast, sound investing
In this first of a 10-part CD series produced for the PBS Show, “Financial Fitness After 50” (2012), Paul discusses how to identify an advisor who will provide all the services you need to ensure you maximize the advantage of working with a professional. He’ll also show you how to tell if the advisor is working in your best interest or in his /her own.
Over the last 3 years the S&P 500 has been the best performer of all the asset classes, as shown in the table of returns at http://paulmerriman.com/
This is part 2 of a 2 part podcast with Michael Port. If you have not heard part 1, Paul suggests you listen to that podcast first. In this 2 part podcast you will hear Paul interviewed by Michael Port, https://en.wikipedia.org/
Paul considers this podcast, the best of his career. In this 2 part podcast you will hear Paul interviewed by Michael Port, https://en.wikipedia.org/wiki
How do you choose the best small cap value ETF? How do you help grandchildren pay for college? How do you decide between a money market fund and a short term bond fund? How do you get the most out of ETFs? Why not put more of your portfolio in emerging markets? Paul answers these questions from his readers and listeners.
Paul responds to 10 comments and questions about the article, “How to turn $3000 into $50 million.” This article has produced more comments and questions than any other he has written for MarketWatch in more than three years. In some cases, Paul points out how short-sighted investors can be and, in others, he tries to find ways to make people comfortable with the risky nature of stocks. For more on this “Legacy” strategy, go to: http://paulmerriman.com/