Chapter
The Collective Wisdom of Stock Market Trading
14:08 - 25:38 (11:29)
In the stock market, both smart and not-so-smart people trade on the same collective wisdom, sharing the same information which eventually gets the price where it's supposed to be, and insider knowledge does not exist. Having a process to match people's investments to their needs can lead to a better outcome as most people tend to mess things up themselves.
Clips
The stock market levels the playing field as there are no superpowers with inside knowledge, and collective wisdom eventually determines the stock price.
14:08 - 18:53 (04:44)
Summary
The stock market levels the playing field as there are no superpowers with inside knowledge, and collective wisdom eventually determines the stock price. Investing in the public markets can be a level playing field as everyone has the same information.
ChapterThe Collective Wisdom of Stock Market Trading
Episode#356: Peter Mallouk — Exploring the Worlds of Investing, Assets, and Quality of Life
PodcastThe Tim Ferriss Show
More than 85% of professionals trading in large stocks underperform the index over long periods of time, making investing in the 500 stocks a better option for beating the market.
18:53 - 21:49 (02:55)
Summary
More than 85% of professionals trading in large stocks underperform the index over long periods of time, making investing in the 500 stocks a better option for beating the market. With transaction costs and behavioral mistakes taken into account, investing in the market can deliver higher returns overall.
ChapterThe Collective Wisdom of Stock Market Trading
Episode#356: Peter Mallouk — Exploring the Worlds of Investing, Assets, and Quality of Life
PodcastThe Tim Ferriss Show
Understanding the needs of the investor, matching the asset classes to their needs and assessing the short-term and long-term investment strategy is important in order to separate the good from the bad wealth management.
21:49 - 25:38 (03:49)
Summary
Understanding the needs of the investor, matching the asset classes to their needs and assessing the short-term and long-term investment strategy is important in order to separate the good from the bad wealth management.