Compounding Project Podcast – Episode 36
In Episode 36 of The Compounding Project Podcast, legendary investing educator Paul Merriman shares timeless insights on long-term investing, the power of compounding, and how everyday investors can build lasting wealth.
Paul explains why starting early is one of the most important financial decisions you can make, how compound growth works quietly over decades, and why low-cost index funds remain the foundation of successful investing strategies.
This episode dives deep into portfolio diversification, the hidden impact of investment fees, and the role of small-cap value investing in improving long-term returns. Paul also offers practical, evidence-based guidance for young investors, parents, late starters, and anyone seeking financial independence through disciplined investing.
Whether you’re new to investing or refining an existing portfolio, this conversation delivers actionable lessons on building wealth the smart way.
- Starting early and staying consistent matters more than market timing or stock picking.
- Low-cost index funds and diversification are the most reliable tools for long-term wealth building.
- Small-cap value investing and minimizing fees can significantly increase lifetime investment returns.
- Your Money and Your Brain
- The Psychology of Money
- Thinking, Fast & Slow
- Spending Your Way to Wealth
Watch the full episode for expert insights on investing, compounding, and financial freedom. Subscribe to The Compounding Project for more conversations with top investing minds.
Timestamps:
02:00 Intro to Wealth and Index Funds
03:20 The Million Dollar Decision
07:04Investing Tips for Young Parents
12:47 Saving When Money Feels Tight
19:58 Rethinking Stock Market Risk
24:36 Why Investing Is Easier Today
29:08 When Bonds Make Sense
32:56Investing Across Generations
35:52 Starting Late in Investing
41:05 Defensive Investing Basics
42:10 Why Stocks Matter Most
48:09 Market Returns Explained
51:22 Why Diversification Matters
54:49 Fees and Long-Term Returns
58:28 Small Cap Value vs Total Market
01:03:25 Equal-Weight S&P 500
01:08:36 Handling Market Volatility
01:11:05 Picking Small Cap Value Funds
01:12:50 Trust in Investing
01:16:42 Hotseat Questions