6/28/2023
About This Episode
Dave Ramsey's Investing Advice
Plus Ben and Cameron Passmore interview other financial experts on their podcast, Rational Reminder. They have made a special effort to interview many of the academics who have studied the investment process.
Here is a wonderful interview with:
Prof. Meir Statman: Financial Decisions for Normal People
5:16 Meir defines Behavioral Finance
15:37 The difference between a "normal" investor and a rational one
21:48 Why normal investors like lottery-like assets despite low or negative expected returns
26:24 The downsides to the "consume from dividends but don't dip into capital" rule
32:59 Why dollar-cost averaging is so persistent, when it is well-known to be rationally suboptimal
36:48 What makes strategies like covered calls and structured products so attractive to normal investors
43:19 Why normal wealthy people seek to invest in hedge funds and private equity, despite their questional benefits to a rational investor
48:24 How normal investors should deal with currency hedging in global portfolios
53:03 How behavioral portfolio theory differs from mean-variance portfolio theory
1:00:21 How an optimal behavioral portfolio differs from an optimal CAPM portfolio
1:09:21 How the typical risk-profile questionnaire can be adapted to improve the behavioral dimension of portfolios
1:15:53 How financial advisors can use behavioral finance principles to improve client outcomes
1:17:55 What puts financial advisors in a position to give well-being advice
1:23:27 Meir defines success in his life
/ben-felix-new-truth-teller-and-qa