Chasing Top Fund Managers

[@CarnifaxMachine]

How prophetic this video was... I'm writing this comment about 14 months after the release of this video. In that time ARKK has declined 61.8%. Oof.

[@Q115115]

Pulled out all my funds at ARKK right after this video and saved myself from the 40% decline lol. How do I donate to you?

[@BenFelixCSI]

Just pay it forward!

[@Sidious6460]

Ben just wants to see Canadians make more rational financial decisions. He's a public service really.

[@delvinmorales9458]

Looks like a good decision now in 2022.

[@theoriginalwasa1006]

@@Sidious6460 and Australians. I find almost everything he talks about is relevant to us. The ticker symbols are slightly different for his specific recommendations but the message is as relevant for us as it is Canadians.

[@financeguy8444]

You are the smartest finance guy I've found on KZbin so far. Watching your videos is like going back to graduate school but then getting an update that we didn't know back then. Thank you!

[@lography6917]

You're the most criminally undersubscribed financial KZbinr, yet you're probably the one who is the most objective and genuinely gives advice that shows you care for the financial future of viewers. I guess most people would rather maybe have a million dollars next year and go broke trying, rather than almost certainly having millions in their 50s

[@cartman19892]

nah i prefere dave ramsey..... ...... hahah jk

[@MoneywithPennies]

Agree, unfortunately it seems like people just want to see those videos promising to 10x their money right now.

[@MoneywithPennies]

@@cartman19892 Haha, priceless. =)

[@trakrekkid]

It's because he doesn't boast about his own portfolio (unlike the annoying little guy who is always talking about how much real estate he owns, even though if you listen to him carefully you realise it's all levered to the hilt...)

[@johndorian3685]

If you need a financial advisor to buy xeqt, xgro or xbal, there is must be something wrong with you people.

[@idontlikeyouyo]

I feel like his entire video is made about ARK invest.

[@niranmojo]

Haha I too was thinking the same. I would love to hear Ben’s thoughts Cathie wood and Ark investment.

[@laja82]

cough cough

[@CosmicSeeker69]

if anyone is interested - Sven Carlin took an look at ARK around end Feb 2021 - I think - it opened my eyes

[@Brainwashed101]

I could have sworn the gray-haired figure at the beginning was mean to be a reference to Peter Lynch.

[@BoonTee]

ARKK has dropped 18.8% from the video released till today (24 May 2021)

[@cortempestas2982]

oh a new video! exactly when I was watching some of your old videos. if you see this comment, ben you are one of the best youtube investment channels ever there, through you, I learned how to invest right and how to manage risk. before you I was picking stocks, but after discovering your channel I realized how stupid I was. The most that I like about your channel, is that you actually use scientific data to prove your point, which I don't see in any of the other channels.

[@armovetz]

my brain read “I learned how to invest right and left” :D

[@chrisf1600]

100% agree. Ben opened my eyes to the whole world of academic finance, EMH, CAPM, factor investing... he made me realise what an idiot I've been by trying to pick hot stocks and chase the latest fad. These videos have changed my entire investing approach, no exaggeration.

[@Rogelio_007]

Felix was born to do KZbin vids. Clear, concise, correct and complete information with the perfect amount of engagement. Keep up the great work lad :-)

[@djayjp]

You and pension craft have the most insightful videos on YT by far. Always a great job done! I've learned so much.

[@CosmicSeeker69]

Ramin is a lovely Guy - BUT IMHO he's a teacher - not a trader. In Robert Kiyosakis view that makes him Fake.

[@djayjp]

@@CosmicSeeker69 Lol ok

[@dogussahin]

best investment channel in youtube, period.

[@c.w.2358]

It is such a temptation zu invest in a winner-fund. So one has to watch videos like this one over and over again . Thanks!

[@victors8718]

Are you german? :)

[@gulamgardish670]

When I was listening to this, I felt Ben is smashing the ARKK managers... :) Nice advice as ever...

[@AndreiJikh]

This was a brilliant video, thank you Felix!

[@NeoWeaponog]

Came here from watching your video :) thanks for the references!

[@familyaccount4159]

I’m watching from Andrei recommendation

[@austin4you262]

Came from Andrei Too!

[@AussieMoneyMan]

Glad to see you watching these videos Andrei.

[@trong9402]

This bloke is a legend. The definition of quality over quantity. Refined analysis. Make more videos!

[@miloudxxi6527]

Happy to see you're back. Thank for the amazing analysis. Greetings from Germany

[@christophdenner8878]

Thank you so much, this confirmed what I was already up to: stop cost-averaging into my ARK funds, not buy the ARKX newly issued end of March, and instead keep buying the boring VOO and VTI, a small/mid cap ETF and boring dividend stocks instead.

[@llljjj007]

I love how Ben never explicitly named Ark but everyone knows he's talking about them.

[@harrychu650]

Envy and Jealousy across the industry against Woods and Ark invest.

[@KarlDag]

@@harrychu650 we'll see in 10 years.

[@squishtomar1676]

It's also a good idea because this video will age well

[@JMEUTEUW]

@@harrychu650 maybe it’s just Ben Felix thinking for himself and not being a sheep like you?

[@harrychu650]

@@JMEUTEUW the entire industry and their media cronies have turned negative on Woods and ARK. Thus, I do not think you understand what being a "sheep" actually means. Someone like you should definitely stick to mutual funds and index funds. Lmao

[@user-sc4ne9zj2e]

Ben! just wanted to say I love your podcast. Absolutely amazing. I'm 19 and its been an awesome thing to find so early. I only wasted a year trying to pick stocks! doesn't seem too bad all things considered.

[@Bonez1999]

I can predict the future, that's why I press the 'like' button as soon as a new Ben Felix video starts.

[@Bonez1999]

Yep. I was right again!

[@palmeralexj]

Nailed it. How do I give you my wheel barrels full of money?

[@johndorian3685]

No one knows how long the ARK* funds will outperform. They could go on to outperform for the next few years or they could suffer from large drawdowns (or even worse, they could fold). So far they've outperformed the SPY 6 out of 7 years. However, since many asset types are connected, I would be surprised to see ARK* fall in isolation. That is, if there was a 60-70% drawdown in ARK*, you'd most likely see a very substantial drawdown in your 3-fund portfolio, or especially in your 100% SPY portfolio. We've already seen this played out: Look at the charts for how ARKK has performed since around 2/15/2021. ARKK was up 20%+ this year, and now they're only up 4.7% vs the SPY's 1.7%.

[@photomukund]

It is great to see younger investors taking the leap. However, the impatience for returns (almost lottery like) and misuse of instruments (quite a few seem to be treating ETFs similar to stocks and do day-trading) is leading to bad outcomes for those that are carefully invested. Thanks for your academically founded insights.

[@oblivion_2852]

Most young investors just want to avoid getting a job. When in reality the only way to invest is with a job at hand for atleast 10 years (21yo cs grad)

[@MattLozier314]

Ben, I terribly love your content! Would you consider doing a video explaining the pitfalls of investing using stock tips from "The Motley Fool"? I did make a good deal of money from their tips but over the past 2 years I've lost money from their picks. Had I stuck to indexing, I would have been ahead. Cheers to you from So Cal 🌊🌴☀️

[@AurelioPita]

I've been watching your first videos from the channel, big improvement from the "I'm Ben Felix associate portfolio manager at PWL Capital" using a suite to "I'm Ben Felix" with a CSI sweatshirt. Thanks for all the info you provide to us.

[@brettmclennan4363]

Timing on this video is great. I got in to ARKK in like 2016/2017. When it hit a 52 week high a month ago I was gonna sell it entirely but figured I would wait till 4th Q. Next market pump I'll do it. It's been a great investment but the herd has arrived so it's time for me to go. Just the tiniest wisp of rising rates and the market has panicked. I wonder what will happen when rates actually go up...

[@Yolo6942]

Congrats ! you seem to be an early bird ...just to be curious ....where are moving next ? Are you fully etfs or stock picking? Thanks .....on my side i reduced Arkk /arkg ...too volatile when nazdaq is correcting

[@brettmclennan4363]

@@Yolo6942 I sold it all this week and moved into some individual value names. The rest back into the index.

[@nathanvick6970]

@@brettmclennan4363 Care to share some of those names? I have a few I invest in but am always trying to keep my ear to the ground.

[@brettmclennan4363]

@@nathanvick6970 ibm, bce, brk were the largest positions I opened

[@chubbs6684]

Cathy Wood is getting a large amount of inflows now after her crazy returns. Curious if we will see her in this video in 10 years.

[@edwardmauer7442]

@@manp1039 Fair point, but her overall strategy, thought process, and even astronomical returns so far is identical to these guys who all eventually flamed out after stellar beginnings.

[@harrychu650]

Interestingly, Wood has become the target of negative media and industry commentary. I suppose she is not part of the club.

[@FA9082]

All the ARK returns have come from holding TSLA. If you strip out TSLA from the ARK returns, the returns on a risk adjusted basid are not that much better than just holding the Nasdaq 100

[@harrychu650]

@@FA9082 Have you done this analysis yourself? Her CRISPR picks more than doubled in since 2020. She was also holding Square. Overall, hasn't she been beating the S&P for several years now? This is in stark contrast to the vast majority of active managers who routinely underperform.

[@VinhNguyen92]

@@manp1039 ARK ETFs currently have a record redemption of half a billion and it's even raising concerns about liquidity because some of the investments are iliquid tech stocks. ETFs are not immune from capitulation.

[@alankoslowski9473]

Welcome back Ben! While I'm sure you have other things in your life, 2 months is way too long for us to go without our Felix rationality fix.

[@alecgalbraith5604]

The hero returns when the world needed him the most.

[@EvilGenius007]

The little vertical ellipses (...) opens the Report button where you can flag scammers.

[@johndorian3685]

Just buy xeqt, xgro or xbal. No need in heroes or financial advisor for that matter.

[@shanevollmer12]

For real wish he posted a bit more 😩 Can’t complain tho cause videos are always quality

[@prakticehealth8251]

Amen 🙏

[@SageFinance]

Best to stick with low cost index funds over the extremely long term 🙂

[@utubethumbsup]

Not really. If you had listened to this idiot, you missed out on massive gains in 2020. Just because over the LONG TERM trend-chasing funds don't perform well doesn't mean you can't make a lot of money in the interim. Unfortunately Ben Felix is not particularly bright, and hence he doesn't understand such nuance - he just assumes everyone buys and never sells until retirement or death. Listening to this guy over the last 1, 2, 3, 5 years would have lost you a LOT of potential gains.

[@abrararifify]

@@utubethumbsup I think a guy with an MBA and a mechanical engineering degree at the very least has more credibility than your comment. And he used peer-reviewed articles to back up his claims. He's not talking shit out of his ass. He literally explained that historically people heavily invested in funds that were already overperforming, as in people that invest in the peak are ultimately the losers in this. Which is the vast majority. If you're somehow a super genius investor and can pick out the best-performing stocks consistently and win out 100% of the time well that's good for you, but that's extremely rare and next to impossible. As Mark Cuban said, everyone's a genius in a bull market.

[@utubethumbsup]

@@abrararifify LOL yeah, and meanwhile your pal Warren Buffet has underperformed the S&P for the last *decade*. Weird how we're never supposed use past results as a prediction of the future, except when it comes to what this moron Ben says. Time to wake up and realize that things have changed...although you're more than welcome to keep clinging on to the tired "this time is different lol" nonsense.

[@tylerh1648]

@@utubethumbsup While this is true, he's making a point that alot of people clout chase and hop onto an ETF once the fund has already taken off and therefore they will miss out on most of the gains it previously had. Plus that is the risk you take for better gain. Nobody knows when the next big crash is coming, so having alot of your money in a risky portfolio could spell disaster for your future net worth.

[@alankoslowski9473]

@@utubethumbsup You realize a decade is only a ten year sample of the 100+ years of detailed market return info we have? Your comments epitomize hindsight bias. You're focusing on the small minority of funds with exceptional returns while ignoring the vast majority that have trailed the market. Analyzing historical returns is more likely to produce better insight and forecasts than a 10 year sample.

[@BenHC]

Ben seems to love this topic, I can hear the joy in his voice haha I think this is such an important topic, people love bandwagoning themselves to overpriced stocks and ending up with disappointing outcomes. It's one thing to do with a small amount of play money for fun if you enjoy the big ups and downs... But I certainly wouldn't bank my retirement on a company continuing it's outsized growth for the long run.

[@JMEUTEUW]

What are we currently seeing? Ark ETFs getting hammered. Ben was right. Hype only lasts for some time

[@tixchicken]

yep pretty much Ark

[@e.sanoop110]

The best fund managers are the ones who can manage and survive Bear markets because that's when the most fear and volatility is, so if a Fund manager or trader is profitable during the Bear markets, then they can handle any market conditions. Bull markets are somewhat calm, stable and definitely not as volatile as Bear markets. So people must focus on Fund manager who are confident of handling Bear markets. 😎😎😎

[@poklop84]

Commenting just for the youtube algorithm. This needs to be seen by more people. Thanks Ben!

[@Mosesusorer]

@Eamon & Bec hey there! How’s the weather in Lagos Nigeria right now? You love scamming, don’t you?

[@a_doggo]

Hey, it's the "Buffet logo"! haha I love your graphics!

[@Tomm8989]

Really great! First time I also see some fire in yours eyes;-) you are really meaning it. I love to see that. Thanks!

[@susymay7831]

Nice video. One correction: Top performing decile funds, over a three year period, underperforming the next year, has been a historical fact However, this is not what statisticans refer to as reverting to the mean. An example of reverting to the mean would be a coin coming up heads for ten flips and over the next million flips coming up 50/50. Over the first ten flips heads came up one hundred percent of the time, over the entire one million and ten flip sample, heads came very close to coming up fifty percent of the time. ___ There are many thousands of hedge funds and the best performer in any year has a much higher than average chance of having taken on much higher risk than the group. This often does not bode well for their future. Another factor in play is that a skilled manager with a small pool of capital will often be able to better deploy the capital into larger edge situations than once he has grown into a larger fund (usually from a burst of good looking performance). Legendary market crushing fund (for over 20 years) Medallion fund from Renaissance Technologies caps their fund at ten billion because they can not find enough special situations to justify a larger size.

[@minasmina2700]

Great video 👍 I really like the new (?) format that you talk slower. It makes it easier for non native speakers, like me, to understand. 🙂

[@zjzjification]

I love how your you tube style of dress has changed over the years....now a cool hoodie! Great vids too, very grateful for such high quality investing content that is available for those of us that are starting out their investment journey and have a lower net worth

[@Mosesusorer]

@Inner Motivation hey there! How’s the weather in Lagos Nigeria right now? You love scamming, don’t you?

[@f3wbs]

Good timing Mr. Felix. Let me guess: we should stick to low cost index funds?

[@MonsieurDee]

Good investing is like trying to live a healthy lifestyle. Everybody knows how to eat healthy and exercise ... Just comes down to doing the right thing .

[@maxhase8484]

@@MonsieurDee Good analogy, and high growth stocks are high calory food which is very tempting but you actually know that it needs a balanced nutrition.

[@alankoslowski9473]

Yes, he has great episodes explaining how low cost index funds slanted towards small-cap value has historically produced the highest returns.

[@pradeepdarji5407]

This video has reminded me some of the words from Common sense of investing by the Legendary Jack Bogle ❤️❤️

[@elizabeththe10th10]

I love how open minded Ben is about investing, I read an article of investors that made upto $500,000 within 2months from shorting, so please I'd really love more tips and clues on how to outperform the market and make such profit using options.

[@Kennan_Davis]

You won’t

[@middaynap9240]

start with a substantial amount and trade

[@virginandho1191]

@Stay Bullish I have made quite a stride investing on my own but I am aware of the benefits of consulting with a professional but haven't found one that knows what he is doing. Do you know any?

[@cerealkiller6193]

@Stay Bullish oh wow😮… This is incredible. I listen to her podcasts sometimes and I have learnt lots of strategies, never knew she offered these services. how does she work?

[@CricetolaS]

The account posting this fake question and most of the replys are bots, all created in April 2020 to shill this pseudo financial consultant. Bot spam badly done, really obvious lul.

[@batardglouton5455]

Thank you, I was definitely going to jump on the Ark train if it wasn't for you.

[@johndorian3685]

There’s nothing wrong with having 10% of your portfolio in the ark ETFs, because no one knows the future.

[@Mosesusorer]

@@johndorian3685 That is ignorant at best. While we do not know the future, we know all about the consequences of chasing returns, expected returns for various asset classes, reversion to the mean, and about star fund managers’ fates, PLUS we have ample historical evidence to observe and draw conclusions from. In other words, holding some of the most expensive growth stocks in a portfolio and expecting to outperform for a long time is just dumb...

[@johndorian3685]

@@Mosesusorer Show me please Ben’s achievements in the investment field. Because Cathie Wood celebrates 10 years at AllianceBernstein beating the sp500 during 2000-2011 in 7 out of 10 years. Why do you think Ben cares how you invest your money? He gets paid per view by Google on KZbin, no successful portfolio manager needs to make extra cash from podcasting or KZbin.

[@batardglouton5455]

@@Mosesusorer I remember seeing a comment on another video... Something along the line of between fear and greed. Anyway, VEQT/XEQT will do fine for me. The gains I'm missing out on will not go up forever and not timing its downfall is the price I pay for peace of mind. I also have a feeling that some people are into investing just to make a quick buck, and that's not really Ben's target audience.

[@johndorian3685]

@JOSÉ VICTOR ROLING Notice that he doesn't pick fund managers like Buffet who have done very well over the long term doing active management.

[@davidlopes9615]

Amazing, as per usual. Your channel deserves a lot more subscribers. Your ability to share information in an unbiased and factual way is what makes this shine. Keep it up! 👏🏼

[@Mosesusorer]

@Eamon & Bec hey there! How’s the weather in Lagos Nigeria right now? You love scamming, don’t you?

[@A-Name-101]

I invested a small amount into 2 Neil Woodford’s funds. Here in the Uk His idea was ok but other investors wanted to cash out due to lower performance and it snowballed into crash. I will never invest in star fund managers and only invest in Vanguard index funds in my ISA and index funds in my pension portfolio and some in my work ESPP.

[@GForceimpact]

Great video Ben! Just a small correction. The Nasdaq 100 Index has been around since 1985 (not 1999). Keep up the great content!

[@dorisalvarez2663]

Hi Ben, I love your channel and I like that you back your thoughts and advice with the literature. Is it possible for you to make a video for people that are starting to invest in their 40s? I want to start but I feel I’m starting a little late and I have no idea where to start or what type of investments are better at this point.

[@1dk22]

I think the lesson here is pretty clear. Ambulance chasing in the world of investing is a recipe for losing money in spades. By the time you’re hearing about the next great stock, fund, fund manager, etc. it’s already too late and jumping in is almost guaranteed to lose you money.

[@mojo11jojo]

I’m gonna sell my ARK funds while I’m still ahead bro...take my gains to another casino table

[@josephbroseph1284]

why not just leave it there if youre gonna "casino table" it, might as well just avoid capital gains tax and leave it there.

[@mojo11jojo]

@@josephbroseph1284 Issa joke bro. I’m gonna buy penny stocks that are a sure bet.

[@ericescobar3487]

Excellent video, as usual. Thank you! I would like to point out that many of the charts you show have such small fonts you can't read them at all. The x- and y- axes fonts are impossible to read, as well as the legends. I tried to amplify them but it is very hard to read them. Could you put a link to the charts in the comments?

[@thb7620]

Thanks, this is exactly what I've been looking for. I have told many people not to chase the current top funds as they historically underperform. This just gave me more research materials to show them to support my stance.

[@lography6917]

To those citing fund managers who only beat the market when no crashes happened: "Everyone's a genius in a bull market".

[@majesticderik1347]

Preach!

[@eric23walsh]

clearly not if everyone knows this is about cathie wood and not one of the other million fund managers chasing alpha.

[@djayjp]

CONGRATS on the promotion!! 🎉

[@maxhase8484]

ARK Cathy Wood - This time it's different!

[@rexmundi273]

Just by looking at the chart of ARKK etf, it looks like it topped.

[@ghostreconarticvent9413]

@@rexmundi273 topped based on charts, if you can confidential say that just buy put option and make crazy returns

[@tylerh1648]

@@rexmundi273 Yea I bought in December 2020, lost all my gains due to this last correction. Imma pull the plug on Monday and go back to SP500 and some other small cap index funds. Of course when I jump onboard that's when the market correction happens, but it is what it is.

[@JanischMaximilian]

@@tylerh1648 Sorry for being a bit snarky - But you make it sound like the two months since December 2020 are a long time in the investing world 😂🙃.

[@alexreed3854]

@@JanischMaximilian LMAO

[@rhpmike]

Renaissance Technologies being the obvious exception. Although, to your point, they capped their size so that they never grew to a scale that their skill couldn't handle. But yeah, they are the exception that proves the rule.

[@JoelJoel321]

Ben, please can you tell me what you think of this analogy? ... Picking a good fund manager is like watching a hundred blindfolded people throw darts at a dart board, and deciding the one who hit the bullseye a couple of times is always going hit the bullseye in the future. Whereas, choosing the index is like betting on the average position of all 100 darts.

[@johnclukosereloaded]

Could you explain the negative impact of sequence of returns risk during the accumulation phase of a portfolio, investing in index funds with 60:40 equity:debt allocation for a 25 year investment duration for retirement and how to deal with it

[@hoss6981]

Always here when I need to be brought back to reality

[@todaysits]

Thankfully history doesn’t dictate future! Thanks for your great content!!

[@JMEUTEUW]

Thanks Ben for this voice of reason. It’s nice to not follow the herd and have your own opinion.

[@pipebliss]

Cathie Wood, I'm looking at you! 😂 I agree with you Ben. The really smart managers like Peter Lynch, realized this, and exited on a high not like George Costanza. 😊

[@Pieter2360]

I’m still very content “just” getting market returns minus a small fee, through my good ‘ol boring Vanguard index funds 👍

[@samandchar2004]

I’ve always been an index tracker fan and done pretty well. Whilst I still think something like the Vanguard life strategy range (as an example) are an excellent core fund, I do also invest in thematic ETF’s and some Bailey Gifford investment trusts (including arguably THE most successful in Scottish Mortgage), and individual stocks in small companies. I think as long as you have a decent, diversified, low cost option at the core of your portfolio, investing in ideas you believe in can also work and make investment more interesting. Great video by the way 👍🏻

[@alankoslowski9473]

You're probably better off investing in small-cap value funds in addition to LifeStrategy. I have VASGX, AVUV, and AVDV. That seems well diversified in everything worth holding.

[@u105524]

The world needs this video specially ones investing in Arkk

[@PrinciplesPersonalFinance]

Great video Ben! Really enjoyed this topic on the podcast, glad to see it made into a video 👍

[@scott1441]

W. Michael Reckmeyer, III, CFA, Senior Managing Director of Vanguard is a superstar . The equity income fund is a great investment

[@360flip19]

Great video, always the voice of reason. Would love to hear your thoughts on SPACs.

[@BenFelixCSI]

Maybe, but check out the next upcoming episode of the Rational Reminder. SPACs are discussed at length with one of the most prominent academics studying how companies go public.

[@360flip19]

@@BenFelixCSI Awesome. I'll definitely check it out!

[@mackerel2002]

Quality as always. It seems like you take investment ideas people are talking about break them down with facts to come back to the conclusion of broad market funds with extra weight to small cap value.

[@Otis151]

Thanks for the video. Why does increasing scale/size make it harder to beat benchmarks? I saw a video a few weeks ago saying the same thing, but I still don’t quite understand.

[@BenFelixCSI]

Active management works by holding a subset of the market that will (hopefully) outperform. That subset of the market is by definition smaller than the market. The more capital an active strategy attracts, the larger the subset needs to be. At some point, the active fund converges on the index.

[@Otis151]

@@BenFelixCSI Got it. That makes sense. Thanks so much for explaining, Ben!

[@nickdoyle-achievefinancial2464]

Good video Ben. I hope it helps change some peoples' minds before they suffer future underperformance or loss.

[@itsjacob7239]

A lot of people are big on ICLN as well. Went up over 100% the past year.

[@BoonTee]

Great video Ben! The problem with star managers are usually not with the managers themselves but with the investors. They bid up the prices of the underlying stocks via fund flows which then lead to poor performance later. Do closed end funds solve this issue at least for the managers? For example Renaissance Technologies Medallion fund is able to sustain their track record even after so many years by limiting the fund size. I am also curious, if you are allowed to invest in Medallion Fund, how many % would you allocate your assets into the fund? Thanks a lot for the sharing!

[@jamiedickey2444]

Ironically you couldn't have timed this much better :) Love your content Ben

[@OfficialBarstarzz]

Just @ her

[@alexreed3854]

For real it was so obvious lol

[@alexreed3854]

@Brett Sylvester Cathie Wood, CEO of Ark

[@gocoronago5853]

Hahaha

[@M88JABER]

@Brett Sylvester the disruptive queen

[@peterkamau595]

Cathie Wood might be different. Most of her investments are in small cap stocks. Stocks with the research but are poorly exposed.

[@Stefbb]

Instant-like before I watched it!

[@HubbiNashrullahM]

I see CSI, I like

[@chrono9428]

Good video. It makes sense. Just to be unbiased, please share good funds to invest in (other than those you manage or invested in - to avoid bias). Thanks!

[@dogussahin]

on an ideal world, we shall see this guy on cnbc everyday, instead of cramer

[@adaxasd]

Hi! I love your videos, however I wonder if you could make a video about investing in Frontier Markets - they're often called riskier because of their small size and illequidity, but wouldn't those risks be balanced out by a more diversified market beta? I also can't find any good data about past performance of Frontier Markets and their correlation to Developed / Emerging Markets.

[@lucasbraesch805]

Great channel. Thank you for helping me stay (somewhat) rational. Could you do a video on equal weight ETF ? I wonder what the trade-offs are.

[@jimmyhirr5773]

Equal weight funds have more small cap exposure than market cap weight funds, which makes the equal weight funds have a small cap risk factor loading. Also they trade more often than market cap weight funds, which can give them a higher expense ratio than market cap weight funds. For an equal weight fund to be a better buy, it has to outperform both the index and its higher fee.

[@donindiana8504]

I needed this. Good timing. 👍 You probably saved a lot of us from temptation. I need your videos to bring balance to the much more hype videos, articles, posts out there on the internet on ARK, tesla, nasdaq, etc. I'm sure more hyped investments on the horizon. Please make more videos then.

[@David-dw2iq]

Why did ben slow down? He used to drop videos all the time.... I’ve needed a lot more videos from him over this last crazy stock market year. I’m like a child. I need to constantly be reminded to just buy market cap weighted index’s.

[@riffrff]

I think having a baby recently might have contributed to that :)

[@David-dw2iq]

@@riffrff i didn't know he had a kid. In that case, congrats. he gets a pass

[@kingxerocole4616]

Someone please correct me on this if I am wrong: Several companies that ARK invests in - such as OPEN, PLTR, NNDM - have bullish reports from other sources. If you're about to invest in ARKK, wouldn't you have greater potential returns by investing in the specific companies? The fund seems to spread risk by holding many more unproven companies rather than minimize it.

[@jiangalang4]

Needed to hear this so bad to help with the ARK fomo. Thank you!

[@matthewcurrie8637]

Fomo? While you leverage professional fund management services at the helm of your investment? Trust me if you do, fomo has nothing in you buddy! Where you located?

[@blakutnuj]

I cannot stop chasing a bald guy from KZbin and his advice to buy low cost index funds, help me!

[@alankoslowski9473]

As far as compulsive behavior goes, that's some of the best though.

[@Martin-qb2mw]

Great video Ben, addressing the question on everyones mind. Impeccible sense of timing!

[@baodo7905]

Cathie Wood also invests in a lot of small cap growth stocks where ARKK can buy up enough shares to influence its market price which pumps it up when ARK buys them. This causes new investors to think she’s choosing stocks with great returns. They then buy her fund which increases her inflows and increases her funds stock price. She’s also a master marketer. She’s even a patreon member of at least 1 KZbinr. Not saying she’s bad at what she does but she isn’t a God

[@Strimbles]

So then ...WHERE SHOULD WE INVEST?? 20 minutes with no answer! Please advise, thank you!

[@michielvandenberg7438]

After all this time with with Ben felix I still struggle about when to go for Small-Cap or As broad-as-possible etf's. My horizon is 30 years to be able to retire 5 years earlier. Any notes on that? Thanks

[@PhongNguyenThanh2503]

Well, interesting video. But small-cap companies are much more vulnerable to special economic condition (such as Covid). If you look back 5 years 2015-2020. Small cap ETFs under COVID tanked even under their price in 2015. On the other hand, I agree with you that going for super star ETF such as ARKK is also dangerous (due to the concentration of stocks in innovation companies). I am happy to stick to the middle Nasdaq 100 (QQQ)

[@superbit415]

Interesting timing for the video. Would have much preferred it when a certain fund was flying high and everyone was pouring their money into it versus now when everything is down.

[@Lukescomment]

But Ben,this time is different..Cathy wood has entered the chat

[@full__tilt]

Ben says finished off saying best performing fund managers make the worst investments, but Ark is investing in Tesla. So it really is different this time

[@waiguoren]

@@full__tilt Tesla is a terrible investment, all of their future claims are BS and other players would get in anyways

[@ArunexFreelancer]

​@@full__tilt You mean that tiny auto manufacturer that's planning to some day produce a million cars a year that's somehow worth more than the top global auto manufacturers combined that each already produce a multiple well above Tesla's future target? Spoiler alert: Nevermind. I'll rather let you be surprised by what happens next.

[@royjonzejr]

@@waiguoren Yeah, my issue with Tesla stock is that the bulls are assuming that in 20 years, every car on the road will be electric. Fair enough. That's probably true. But then they seem to extrapolate from that that EVERY CAR ON THE ROAD WILL BE A TESLA, as if every other car manufacturer is incapable of making an electric car. Go ahead and call me out if I am strawmanning the bulls' thesis but that's the only way the valuation makes sense to me.

[@AgentDYay]

@@full__tilt Thanks, man. I was on the edge of selling off my ARK positions but wasn't truly convinced until I read your comment. Saved me from a 15% loss LOL.

[@yashen12345]

this is high quality content. please keep making more

[@jimmyzhang0305]

Great video Ben. We all probably knew it but it's good of you to back it up with stats. Fund managers must really hate you

[@attech451]

New game: invest in an index fund every time Ben references Fama/French

[@victorgbs]

You mean I should invest all my money in index funds then? ... wait that's what he says isn't it? Sign me up

[@mpower2386]

If a manager excess returns are mostly mean reverting, would there not be alpha to be found by avoiding stocks in which top performing funds are overweight?

[@BenFelixCSI]

I think you just discovered value investing.

[@mpower2386]

@@BenFelixCSI haha, true.. but are there not periods where value is outperforming above what is expected? Wouldn't the same logic apply to those value managers? I guess growth is more eye popping during good times so the flows into growth funds might force more outrageous valuations. But cant the outflows from growth funds during bad times force those stocks to be undervalued?

[@Kennan_Davis]

@@mpower2386 what you said is why diversification succeeds

[@baodo7905]

Ben, always great to hear your perspective. What matters is what the data and empiricism. Something that’s in short supply today

[@Nierez]

9:54 - 10:01 this is engraved in my head

[@aerialdude]

If the best performing funds tend to make the worst investments, does that mean that the worst performing funds tend to make the best investments? Like, should we just put our money in funds that have recently tanked? Honestly seems like a good idea. The paper presented at roughly 12:00 in seems to support this idea.

[@thomasmuller1850]

After that video I should say goodbye to ARK.

[@javavall]

And I had recently bookmarked "The medallion fund" and Peter Lynch... and Ben does it again, spoils all the fun.

[@prestonlui6451]

I think even Ben acknowledge Medallion made miracle. His point was always there is only one Medallion

[@Guest-dl2vw]

how do you feel about sticking with Index Funds, preferably Vanguard's VTSAX, VBTLX, and maybe 5% into Vanguard's Total International Stock Market Index Fund, VITAX, I think is the Ticker? Take 110-age=stock percentage of portfolio, balance to bonds

[@Washar1]

Ben, you are a true hero for us, the small investors. but i must ask, how come you are not blinking?

[@trentntb5437]

Ben, could you highlight what are the implications of this with an index fund or would this be shielded as it is more algorithm/predetermined weight for the companies invested? Also, how does an index fund that tracks small cap value benefit mechanically? Like, if you are investing in these companies when they are low and they eventually rise, how do you know that your fund's prospectus isn't going to liquidate that position right when it is taking off? I hope this makes sense. Basically, how are you benefitting by holding long in small cap value? Would it be paying a dividend or how would the appreciation be captured/not liquidated. Excuse my ignorance.