The Meb Faber Show
Welcome to The Meb Faber Show, where the focus is on helping you grow and preserve your wealth. Join us as we discuss the craft of investing and uncover new and profitable ideas, all to help you grow wealthier and wiser. Better investing starts here.
Ben Carlson: The Numbers That Break Your Brain About Long Term Investing | #637
Today’s guest is Ben Carlson of Ritholtz Wealth Management, author of A Wealth of Common Sense and host of the Animal Spirits podcast. In today’s episode, Ben unpacks the counterintuitive math behind long term investing. He reveals that picking the wrong asset every year still makes money, that the average up year tops 20%, and that stocks grow less volatile than bonds the longer you hold. To close, Ben explains why patience has never been harder.
Key Points
- Even if you consistently make the worst investment choices each year, you can still end up making money over time.
- The key to successful investing lies in having a rules-based strategy and a long-term time horizon, not in trying to time the market.
- Understanding and defining your personal investment limitations is crucial, as it helps protect you from making impulsive, potentially harmful financial decisions.
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Resources: Risk and Reward
Sponsor: Ivy Invest - To learn more about Ivy Invest's SEC-registered endowment-style fund, view the prospectus, and learn how to invest, visit ivyinvest.co/fund
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Transcript
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