Learning From Our Past: Who to Trust and When to Buy
What would you do with a family fortune? Taking a hard look at the downfall of the Vanderbilt dynasty tells us a few things about wealth, purpose, and the importance of a trusted financial advisor.
History can tell us what to expect during unpredictable global events, how bear markets typically come to a close, and the surprising similarity between institutional and retail investors.
This week, Doug and Greg why wealth alone won’t buy happiness, what the market corrections of the past mean for today’s turbulent fluctuations, and why “professional” investors aren’t immune to emotional influence.
Key Takeaways
- [00:18] - Money lessons from the Vanderbilt curse.
- [11:19] - What a history of market corrections should mean for your perspective on an upcoming bear market.
- [15:48] - How a bear market may end.
- [20:13] - Actively managed strategies versus index-type strategies.
Quotes
[08:14] - “I just think that lack of purpose and lack of direction leads to lack of wealth. So what does money really do? Money, if you’ve at least been a good steward of capital, provides you with flexibility and time.” ~ Doug Stokes
[15:28] - “That’s the real issue — trying to time the market and waiting for the dust to settle. Our human nature does not want to buy when we think that there is a risk of loss around the corner and there’s been a recent risk of loss. And so the whole involving of human emotions and investments is a really bad combination.” ~ Greg Stokes
[24:05] - “The presumption is that investment professionals, investment managers are better at that sort of emotional aspect and timing the market than a retail investor but this basically debunks that whole theory. And it is absolutely true that people, in general, retail investors or institutional investors, are not good at beating the market.” ~ Greg Stokes
Links
- Morgan Housel
- Breakers Estate
- Biltmore Estate
- Anderson Cooper
- Elon Musk
- Tesla
- Bill Gates
- Our Perspective on April’s Return to Rocky Markets
- Gamestop
- Peloton
- Dogecoin
- Cathie Wood
- Fizz
- AMC
- ‘Past performance is no guarantee of future results,’ charted
- SPIVA Study: Percentage of actively managed funds that outperform benchmarks
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Disclosure
The information in this podcast is educational and general in nature and does not take into consideration the listener’s personal circumstances. Therefore, it is not intended to be a substitute for specific, individualized financial, legal, or tax advice. To determine which strategies or investments may be suitable for you, consult the appropriate qualified professional prior to making a final decision.
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