A Rich Life

The Old Ideas on Saving & Investing Don't Work -- Here's What Does

Comments

  1. I liked this one a lot. It is friendly and inviting and oriented toward a general audience.

    It gives the general background as to why investing advice is as it is.

    Have fun.

    John Walter Russell

  2. It is friendly and inviting and oriented toward a general audience.

    Thanks for those extremely kind words.

    Rob

  3. JWR:

    I listened to over an hour of Rob talking, based on what you said. Totally False Advertising — this is just another in a series of over two dozen hour-long screeds against the ideas of OTHERS, rather than any new ideas from Rob.

    @ 21 minutes he says that in six years, no one has refuted his theories. Well, putting aside their vagueness, the one thing that is clear is that *somehow* investors are supposed to get into and out of the market based on valuations. Since he refuses to provide a formula, then investors are left to their own devices to do that. History is clear that when investors attempt to time the market, they lose. Period. It is well-proven, and Rob provides no effective reply to the fact, and certainly no data on his own ‘system’. So, unless Rob’s theory really does somehow address that fact, and can make a new different, and better proposition, then the same thing that Rob has been told each day from the outset still holds:

    Rob: My system is to time the market based on valuations.

    World: Tell us how to do that, and provide evidence of it’s utility.

    Rob: [silence on that topic, moves on to yet another screed about others]

    That’s no system, that’s no philosophy, and that’s no help.

  4. Thanks for sharing your thoughts, Falsely.

    I addressed your point in the opening minutes of the podcast.

    I pointed out that “You are tuned in to the anti-Passive Investing network.” That means that ideas picked up from the Passive Investing school do not apply here!

    I said that my job is to encourage you to give up on Passive Investing, and that, if I do that, you’ll be able to figure the rest out for yourself.

    You don’t need no stinkin’ system!

    Do you employ a system to know what speed to drive on the highway? You do not. There is no “system” that tells you the precisely correct driving speed. You use your common sense. You know to drive a bit slower when the road is wet or icy.

    So it is with investing. The pricier stocks are, the more dangerous they are and the less of a long-term return they offer. If you get that, you get it all.

    You won’t get that until you give up on the Passive Investing idea that you need a “system” to invest in stocks. The idea that you need a “system” is one of the things holding you back. This is an emotional “idea.” This is the product of the Passive Investing mindset.

    Rational Investing is system-free investing.

    Rob