Index Fund Investing: The Simple and Accessible Way to Successful Investing
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- čas přidán 7. 06. 2024
- Investing can be simple and accessible to the average person, says financial thought leader and economist Burton Malkiel. Malkiel, author of the investment classic "A Random Walk Down Wall Street," has 50 years of research to back up his claim. In his latest edition of the book, Malkiel emphasizes that investors would be better off buying and holding a broad-based index fund rather than attempting to buy and sell individual securities or actively managed mutual funds.
Malkiel's beliefs are supported by the track record of an investor who invested $10,000 in an index fund in 1977 and saw it grow to over $2 million by 2022, while an investor who purchased shares in the average actively managed mutual fund only saw the investment grow to $1.47 million.
Despite the changes in the market and the array of investment products and strategies available, Malkiel remains convinced of the validity of his original thesis. He explains why he still believes in the principles of "A Random Walk Down Wall Street" and offers his perspective on ESG investing, factor investing, and cryptocurrencies.
#investingstrategy #longterminvestment #activeinvesting #passiveinvesting
00:00 Hello
00:50 Introduction
02:50 Interview with Burton Malkiel
21:20 One Investment
24:45 Action Point
WEALTHTRACK episode 1933 broadcast on February 10, 2023
Bookshelf: A Random Walk Down Wall Street: The Best Investment Guide That Money Can Buy: amzn.to/40E5Pa1
Professor Malkiel is a LEGEND. I just read his book. All my retirement money is in a bunch of index funds for the past 20 years. Thank you Jack Bogle and Prof. Malkiel.
thank you so very much Burton Malkiel....
Malkiel is one of the last of the all time greats in Finance. His advice is pure gold and should be mandatory viewing for novice investors. Thank you for interview.
Could not agree more with the comment of holding an index fund. If anything all this immediate information flow driving prices up and down so violently makes me feel even more secure in index funds.
This guy's advice is hands-down the most important financial information anybody should hear. It's great to see him on the program and I appreciate the questions you raised to him Consuelo.
This guy's been around the block many times, I like him. Just ordered the book! 👍
All thumbs up. 👏👍
I had two very good professors before 1994 in my MBA degree and I learned everything from them.
The best is to listen the entire 26 minutes. I figured this exactly out in the 90's. He wrote a book so I don't have to. Nobody will buy my book anyway.
In the 90's I was searching for the best winning fund managers but found no consistency. That raised my suspension and found answers. After a period of I managed my own funds (hey, I had an MBA and probably better than many Wall Street managers), I refined and got exact strategy like he described, from my own experience and my own gathered stats.
You said “I” eight times.
And “my” six times.
@@mikex8683 I say yaw! What is the problem? You don't have I?
@@mikex8683 what is problem? You are jealous?
@@mikex8683 Did I step on you mafia's toe? Please fix your toe and broken heart. I had nothing to do with it. You own it.
Burton is a Legend, thanks for bring him in!
Burton Malkiel is one of the greatest, smartest, most experienced, and most entertaining finance experts of all time. Stellar interview.😊💙🙏😍😺🌱😁
He said to add non-U.S. index funds, as your portfolio "develops"...I wish he had been a bit more specific as to what constitutes, "as it develops".
A great reminder during these challenging times!
Love it
By far the best money honey!!!!
Jack Bogle said not to invest in global markets; not as reliable.
As always Jack Boyle was right in that assessment too! I invested part of my available investment money in VWO and VGK for the last 30 years and they have woefully underperformed VOO!
value investing always wins
Board member of Vanguard, ofcourse he wants to sell those index funds.
And if not what, buy actively managed funds? And lose so much money to the tyranny of fees?
@@trave7644 I prefer safe and liquid assets like US Treasuries, German Government bonds. You know exactly what you get at maturity date.
Index funds can crash 50% or more at any moment...
I’m very surprised he advocated for a U.S. Total Stock Market Index Fund before a Total World Market Index Fund
@Kyle, I've heard him recommend the total world stock (VT) from Vanguard in other interviews. I don't think you could go wrong with either one. These older guys like John Bogle and Burton Malkiel might have a bias to the US, since Bogle felt at the time he said it in the early 2000's, that the US is a proxy for all other world markets. That might have been historically true, but world financial markets are always evolving. Some are stronger than they used to be.
US did better these past 6 months
His excellent advice is a recognition of market sentiment as the correct guide for investing in equities. To hell with the actual numbers that are spewed out by gurus and executives and accountants at the companies. The real thing to watch is market sentiment. If sentiment is positive equities in general will go up in price. Equity investing is a religious experience. Do you believe?
I wonder how much money Burton has made from his books alone
Unconventional times require unconventional investors.
If one buys a stock market index fund, one buys everything in the stock market, including reprehensible commodities such as polluters, guns, gambling, tobacco, liquor, In other words, one sells one's conscience for profit. Malkiel knows this and approves of making money in any deplorable but profitable way.
There are many monasteries 'available for your use
Wish he had covered how he is personally allocated in his 401K and outside of his 401K.
Probably not index funds.
@@rexmundi273 he said most of his 401K is index funds. I'd like to see more detail though.
You already know he's in index funds. The rest of his strategy likely doesn't apply to your situation.
Malkiel and Ellis in different personal situations than most 1:51 They are both up in age and have lots of money more than they need so they have LONG term views for their kids and grandkids Stock index funds for most
I like his advice however, I think he shows his age when he keeps talking down crypto currencies. Although it is very volatile and still speculative, bitcoin has survived this long now and does not seem like it is going away (time will ultimately tell). If the sec and cftc are looking at regulations, it means it is taking that sector seriously
Tulips also are still around, at the moment you just don't trade your house for a Tulip bulb.
@@donaldbump9223 are they putting regulations on tulips and brokerages are letting people invest and be custodians for tulips?
Buy gold if you want an altenative
If great opportunities come with great risks then they aren’t really great opportunities are they?A really great opportunity has low or almost zero risk.Sorry Burton you are talking nonsense and millions of people have believed you for the last 50 years.
Crypto currency- not for you grandpa