Chapter
Why Buying and Holding the Index is Better than Timing the Market
34:42 - 44:09 (09:27)
Wealthfront's data show that investing in the index and holding it over time outperforms trying to time the market. Those who don't buy the index but are like the index as a group end up paying more fees and taxes, resulting in poorer performance.
Clips
Warren Buffet's successful run in compounding included an annualized return rate of 30% before fees from 1956 to 1968.
34:42 - 36:21 (01:39)
Summary
Warren Buffet's successful run in compounding included an annualized return rate of 30% before fees from 1956 to 1968. He encouraged his partners to stay with him rather than taking shares in his company.
ChapterWhy Buying and Holding the Index is Better than Timing the Market
Episode#596: Edward O. Thorp, A Man For All Markets — Beating Blackjack and Roulette, Beating the Stock Market, Spotting Bernie Madoff Early, and Knowing When Enough is Enough
PodcastThe Tim Ferriss Show
Investor Tom Russo shares the story of how he discovered Warren Buffet and Berkshire Hathaway in 1982, despite having lost track of Buffet's career.
36:21 - 37:16 (00:54)
Summary
Investor Tom Russo shares the story of how he discovered Warren Buffet and Berkshire Hathaway in 1982, despite having lost track of Buffet's career. He ultimately made a profitable investment in the company.
ChapterWhy Buying and Holding the Index is Better than Timing the Market
Episode#596: Edward O. Thorp, A Man For All Markets — Beating Blackjack and Roulette, Beating the Stock Market, Spotting Bernie Madoff Early, and Knowing When Enough is Enough
PodcastThe Tim Ferriss Show
Wealthfront's data show that trying to time the market is not ideal for building wealth.
37:16 - 40:02 (02:46)
Summary
Wealthfront's data show that trying to time the market is not ideal for building wealth. Wealthfront offers a technology to start building wealth and get the first $5,000 managed for free for life.
ChapterWhy Buying and Holding the Index is Better than Timing the Market
Episode#596: Edward O. Thorp, A Man For All Markets — Beating Blackjack and Roulette, Beating the Stock Market, Spotting Bernie Madoff Early, and Knowing When Enough is Enough
PodcastThe Tim Ferriss Show
Investing in the index and holding it will lead to better returns than picking individual stocks or hiring investment advisors because the group of people who don't buy the index but are like the index as a group are busy paying all these costs, taxes, and fees.
40:02 - 44:09 (04:07)
Summary
Investing in the index and holding it will lead to better returns than picking individual stocks or hiring investment advisors because the group of people who don't buy the index but are like the index as a group are busy paying all these costs, taxes, and fees.