Practical Lessons from Larry Swedroe | Why Evidence Beats Market Narratives

[@ElementaryWatson-123]

Buffet didn't just passively invested in public companies. He took active part in management. Also a substantial portion of Buffett’s returns has come from the direct ownership of entire companies through Berkshire Hathaway’s acquisitions. These businesses are often in industries like insurance, energy, railroads, manufacturing, and consumer products. He is definitely not an example of an average investor.

[@missouri6014]

great discussion

[@ExcessReturns]

Thank you!

[@Bobventk]

Is this just a re release?

[@ExcessReturns]

It is a compilation of the biggest lessons we took from the 4 interviews we have done with Larry.

[@charlesfrench9557]

Buffet speech: don’t try to time the market. Buffet action: liquidate overvalued equities to raise cash so you can buy when blood hits the streets. ie, AT THE RIGHT TIME.

[@KayWard-uz8uu]

Sounds like a good plan to me. That’s why he makes money.

[@ElementaryWatson-123]

The truth is that every successful investor found his own way of investing, there is no universal approach, and in fact different successful strategies often contradict each other.

[@ElementaryWatson-123]

It's easy to show that rebalancing doesn't work in reality, just run the backtesting. And the reason perhaps is because the decisions are made based on past performance, which is not a predictor of the future performance that your returns depend on.

[@abrahamgomez653]

His strategy isn't really the best but still a good source of financial wisdom.

[@VolaCoaster]

Highly distracted by Matt‘s Sunpointe lunchbox is MIA

[@ExcessReturns]

I am told it will be making its triumphant return on Thursday.

[@VolaCoaster]

@@ExcessReturns🙏

[@CultishCreative]

it's been unpacked and placed - we back baby!

[@MarkPizzini]

How do you define risk and then how do you quantify it. Sharp defined it as the amount of price movment relative to the market, and called it Beta. But that is a purely statistical method. It pays no direct attention to the industry and underlying business . It’s convenient, because it’s easily quantifiable. Unfortunately it’s imperfect. It misses what could happen in the future. It also treats upside price movements the same as downside.

[@mustavogaia2655]

I dont remember wher i've read it, but someone suggested either the "american" or the "general" portfolio, as each of those is composed wtih companies with either word on its name. I thin it worked better when General Elletric performed better.

[@ElementaryWatson-123]

Argument from valuation is not a good one unless you can make a good case of future earnings.

[@barryallen6927]

Bald guy: Make sure your portfolio is highly diversified. Buffett/Munger: Concentration build wealth. Diversification preserves wealth. In fact both Buffett and Munger are against highly diversification. Put your money in your best 4 ideas, not your worst 4. But they also suggest for most retail investors if you don't know what you are doing, just buy the index.

[@ElementaryWatson-123]

Actually Buffet is very diversified, not only investing in public companies, but a lot of businesses that Berkshire Hathaway owns, from insurance, energy, railroads, manufacturing, and lots of other stuff. It's estimated he got 40-50% of profits from publicly traded companies and 50-60% from private company acquisitions (including wholly owned businesses and significant minority stakes).

[@barryallen6927]

@@ElementaryWatson-123 That is true about wholly owned businesses, but if you look at their public portfolio, BH top 5 holdings consist of 70% of their total public portfolio. It was close to 80% before massively trimming AAPL and BAC stakes. Before Munger's passing (RIP) his Daily Journal's public portfolio had 5 holdings. His personal portfolio had 2, maybe 3 stocks.

[@edgibbs3229]

Martha didn’t go to prison for insider trading. Larry needs to get his facts straight without showing his chauvinistic views. Larry also needs to pronounce the The Dean of Valuations last name correctly. Larry is a joke. Following his advice has hurt investors. His overweight on small value has been horrible. You guys do a great job on your videos, but need better guests.

[@stiffeification]

lol. so anyone advocating for anything else then US lareg caps is giving bad advice? You know how recency biased that is right? in Dotcom times this would have been great advice.

[@Kep19901]

Lol, okay, ed. I'd love to see how many AUM you've managed.

[@edgibbs3229]

@@Kep19901 We have managed our investments better than Larry has. He talks Berkshire, but I don’t recall seeing him at any shareholder meetings. Been Berkshire shareholders for approximately 40 years with over 70 percent of our net worth in the stock.

[@edgibbs3229]

@@stiffeification I would favor Warren Buffett’s advice over Larry’s.

[@Kep19901]

@@edgibbs3229 then go listen to a Warren Buffet podcast.