Ep 37 - Larry Swedroe discusses everything investing; covering SRI, ESG and Impact Investing, as well as the effect of ESG on consumer behaviour, how it is continuing to evolve and much more!
Abraham invites Larry Swedroe on Retirementals to discuss everything investing, covering: The background on evidence-based investing The split between passive and index investing SRI, ESG and Impact Investing - what are they and what is the difference between them? The impact of ESG scores and how they can retain or attract talent The effect of ESG on consumer behaviour and how it is continuing to evolve The industries which have the highest expected returns How to make the most of risk and return whilst ensuring your values are maintained How sustainable investing affects asset allocation
Larry Swedroe answers questions on sustainable investing, including alternatives to sustainable investing, investing in sin (brown) stocks, how ESG decisions are made, the risks of sustainable investing, and the historic investment performance of investing sustainably.
Episode 046: Larry Swedroe and Ellen Quigley on ESG Investing, host Rick Ferri
Bogleheads On Investing Podcast
Episode #46 features two guests who discuss Environmental, Social, and Governance (ESG) investing. The first guest is Larry Swedroe, Chief Research Officer of Buckingham Strategic Wealth and the co-author of a new book titled Sustainable Investing with Samuel Adams. The second guest is Dr. Ellen Quigley, Special Advisor to the Chief Financial Officer at the University of Cambridge and a Senior Research Associate in Climate Risk and Sustainable Finance at the Centre for the Study of Existential Risk. This podcast is hosted by Rick Ferri, CFA, a long-time Boglehead and investment adviser. The Bogleheads are a group of like-minded individual investors who follow the general investment and business beliefs of John C. Bogle, founder and former CEO of the Vanguard Group. It is a conflict-free community where individual investors reach out and provide education, assistance, and relevant information to other investors of all experience levels at no cost. The organization supports a free website at Bogleheads.org and the wiki site is Bogleheads® wiki. Since 2000, the Bogleheads' have held national conferences in major cities around the country. There are also many Local Chapters in the US and even a few Foreign Chapters that meet regularly. New Chapters are being added on a regular basis. All Bogleheads activities are coordinated by volunteers who contribute their time and talent. This podcast is supported by the John C. Bogle Center for Financial Literacy, a non-profit organization approved by the IRS as a 501(c)(3) public charity on February 6, 2012. Your tax-deductible donation to the Bogle Center is appreciated.
Are your investment aligned with your values? Did you know that you can screen for (or against) certain industries or sectors within funds? The terms ESG (environmental, social, governance), SRI (socially responsible investing), and impact investing encompass this thought process. Larry Swedroe joins us to explain this type of investing, its growing popularity, and how you can invest in a way that aligns with your values too. He also dives into why the performance for this type of fund differs from other indexes.During our headline segment, we take a look at the impact of increasing gas prices. Your wallet might feel a little slim after filling up at the pump and delivery drivers are feeling the heat too. We talk about what this might mean going forward and how you can save money at the pump. We'll also throw out the Haven Life line to Amanda who has a question about Roth IRA contributions. We'll also leave time for Doug's most amazing trivia.Enjoy! Learn more about your ad choices. Visit podcastchoices.com/adchoices
Larry Swedroe is the Principal and Director of Research at Buckingham Family of Financial Services. He is also an author and researcher with over 4 decades of experience in personal finance. Larry is a frequent speaker on NBC, CNN, CNBC, and Bloomberg. He joins Jared Siegel to discuss all things financial: inflation, allocation, and even hedging. He shares the peer-reviewed empirical data that informs his strongest convictions. Here are a few highlights from their conversation: You should never use forecasts to time the market, Larry says, as all evidence shows that it is largely ineffective. “Forecasts should only be thought of as the mean of a very wide potential dispersion of outcomes,” he adds. “There are always unknown events that we didn’t even think would occur, so your plan should always incorporate those possibilities.” Though the unemployment rate is down to 4%, there has been a massive decline in the labor force that’s willing to work, and an increase in early retirements. In a shocking and unprecedented turn of events, there are now far more job openings than there are unemployed people. “I think the Fed has underestimated the risks of [their] excessive amounts of fiscal and monetary stimulus,” Larry claims. “They’re [conducting] a grand experiment here; they think they can tighten quickly enough without pushing the economy into recession or raising rates too much.” Typically, with low interest rates supporting higher valuations, you should see higher than average valuations for value. Larry remarks. “To me, the only place that you have risk that valuations are too high is in US large growth stocks… In value stocks everywhere else around the world, valuations are historically in the 100th percentile of cheapness,” he shares. While the data has always shown that high valuations predict low future returns, that doesn’t mean they’re predicting negative returns, according to Larry. Jared asks Larry about the helpfulness of economic predictions, and how to prepare for the certainty of uncertainty. “You should always rely on evidence from peer-reviewed academic journals, not people’s opinions,” Larry responds. “There’s a huge body of research that has analyzed investors’ ability to time market, tactically allocate assets, etc., as a loser’s game.” All risky assets should have similar risk-adjusted returns; this also includes similar Sharpe ratios, which adjust for returns. ResourcesLarry Swedroe on LinkedIn | Twitter
Ep 31: Larry Swedroe on Cathie Wood's stricken ARK fund
The Evidence-Based Investor
Robin Powell interviews Larry Swedroe about Cathie Wood, the high-profile Wall Street fund manager who is currently making the headlines for all the wrong wrong reasons. Her flagship ARK Innovation ETF ended 2021 in a 40% drawdown that only worsened to nearly 50% in the first few days of January.So, is Cathie’s Ark sinking?What, if anything, should Ark investors do now?Do Ark’s current problems tell us anything about the current state of the global equity markets? And what are the lessons to learn for investors generally?
Evidence-Based Investing and Sustainability with Larry Swedroe
Orion's The Weighing Machine
In today’s episode, Rusty talks with Larry Swedroe, the director of research for Buckingham Strategic Wealth.Larry finished his MBA in Finance and Investment from NYU. Larry stays connected to the financial industry by spearheading research for Buckingham and the BAM Alliance, but he’s also a prolific writer who has authored or co-authored 16 books. His mission is to explain investing theories to investors in an accessible and straightforward way.Larry talks with Rusty about evidence-based investing, the effects of sustainability on investing, and diversifying portfolios with risky assets."You should invest in as many unique sources of risk as you can identify that meet all of the criteria that I established—those five criteria of persistence, robustness, pervasiveness, implementability, and intuitive rationale. Everything we do is based upon not my opinion, but the evidence has to meet those criteria" ~ @LarrySwedroeMain Takeaways Evidence-based investing is always the winning strategy. Focusing on the risk you can handle and ignoring stock picking and market timing can help you beat the market. Larry’sMy three rules of investing — are: give advice based on evidence, identify risk factors, and examine the robustness of the market. The five criteria for examining risk —are persistence, robustness, pervasiveness, implementability, and intuitive rationale. Sustainable companies get better ratings, which then eventually helps them increase their cash flows and drive their valuations up. Investors are now seeing this trend, too, and their actions as investors can impact how companies implement their objectives. Risky assets should have similar risk-adjusted returns. Portfolios must be diverse and should consider including alternative investments. Blockchain technology is truly innovating the finance world, but the key advice for investors is to assess and accept the changing regulations and the massive illiquidity it might face. Links Larry Swedroe on Twitter Larry Swedroe on LinkedIn Garryowen (from the film They Died with Their Boots On featuring Errol Flynn) Buckingham Strategic Wealth Reducing the Risk of Black Swans by Larry Swedroe Warren Buffett Lost $132 Million On Financial Weapons Of Mass Destruction Wall Street Journal Continental Can Company Kimberly Clark Baruch Lev A note on the relationship between Fama-French risk factors and innovations of ICAPM state variables Morningstar Appirio Parametric Portfolio Association Levi Strauss Cliffwater Stoneridge Ray Dalio Harvard University Yale University SEC Bernard Baruch’s 10 Trading Rules Connect with our hosts Rusty Vanneman Robyn Murray Subscribe and stay in touch Apple Podcasts Spotify Google Podcasts 2344-OAS-8/19/2021
Live Q&A on Investing and Wealth Management and Preservation with Larry Swedroe, Adam Yofan of Buckingham Strategic Wealth and James Lange
Larry Swedroe and Adam Yofan join Jim for his latest Q&A session from Jim Lange's June. 2021 webinar series. Listen in and find out if these Titans of Finance are answering any of your finance questions!If they haven't and you want to get in on these virtual events, you can join Jim Tuesday and Wednesday, September 28th and 29th for amazing information including two different Q&A sessions one featuring Larry Swedroe and Adam Yofan of Buckingham joining in!To register for this two-day webinar event go to https://paytaxeslater.com/webinars to register. If you have a prior obligation, not to worry! Register for these virtual events, and if you can't make it, you'll get a rebroadcast link to your email!Jim Lange also has a new book coming out! Retire Secure for Professors will be the next big retirement book full of information that University Professors will find universally useful! Not a Professor, but know someone that is or works in the university field? Get a copy of the Advance Reader Copy by clicking here!
Inflation, Debt, and Taxes... How to prepare - with Larry Swedroe
Success That Lasts
Larry Swedroe is the Principal and Director of Research at Buckingham Family of Financial Services. He is also an economic speaker, author, and researcher, with over 4 decades of experience in personal finance. Larry is a frequent speaker on NBC, CNN, CNBC, and Bloomberg. He joins Jared Siegel to discuss national debt, the possibility for tax changes, and how to predict and measure inflation in a more objective way. He shares what paradigm shifts investors should be considering today to protect and preserve their purchasing power going forward.Here are a few highlights from their conversation: Markets are forward-looking, and don’t go up just because the economic news is good, Larry explains. The markets only go up when the news is better than expected. Only unexpected events matter because being able to forecast the economy well still doesn’t accurately predict what the markets will do. A likely scenario is that due to current economic conflicts, the value of the American dollar will be lessened, which will provide a tailwind for foreign assets. Another likely scenario is that the massive deficits in the economy will potentially cause central banks across the globe to dump dollars, as they did in late 2018. Jared asks Larry how the market is currently pricing inflation. The 10-year nominal yield provides a proxy for the projected percentage of inflation, he responds. Additionally, he shares what role commodities play in protecting yourself and your long-term purchasing power. Being a value investor is a hedge in your portfolio against the run-up in commodity prices, Larry comments. “Throughout history, value companies have historically done well during inflationary periods,” he says. “That’s part of the reason value stocks have outperformed in the last year.” Gold is an awful long-term investment that has provided zero real return for the past 2000 years. It’s a good inflation hedge, as it tends to do well in short bursts due to inflation, but it goes through much longer periods of bad performance. Larry recommends that listeners move their assets out of their estates before the changes in estate taxes take effect next year. “It might be prudent to start looking at gains now because capital gains rates are going up regardless of what’s going on,” he advises. Regardless of who is in the White House, there will almost certainly be massive tax increases over the next decade. “If deficits can’t continue, then they will end; it’s only a matter of when, not if,” Larry remarks. According to Larry, the four horsemen of the retirement apocalypse are: high bond prices, high valuations, aging populations, and that populations are aging longer. ResourcesLarry Swedroe on LinkedIn | Twitter
Evidence Before Theory and Systematic Investing with Larry Swedroe
The Admired Advisor Podcast
In this episode, Steve talks with Larry Swedroe, Chief Research Officer at Buckingham Strategic Wealth. Larry’s father was a stock market junkie who purchased stocks for Larry the day he was born. When kids his age were reading comics, Larry was reading the financial section of the New York Times. Larry’s ferocious interest in investing persisted throughout college and into his early career. After earning his MBA and, ultimately, a Ph.D. in economics and international trade theory, Larry landed a job at Citi Corp before transitioning into their homeowner’s division. At the time, mortgages were the hot new financial ticket. A million-dollar mistake taught Larry the importance of broad diversification. As he developed within the financial services industry, he learned that keeping an open mind and holding your opinions loosely was the best way to work and live. Larry talks with Steve about his incredible journey in the industry, the power of positivity, why ego is overrated, and what ultimately led Larry to partner with Buckingham in the 1990s and commit to helping advisors full-time. “Your ideas should not be tied up with your sense of self-worth as a person. When you learn something new, be open to it, and here’s what you should tell yourself: ‘I’m glad I learned I was wrong, I’m now smarter.’” ~ Larry Swedroe Main Takeaways As advisors, you have to be passionate about the ideas and processes you’re recommending to your clients. You must have a point of view that’s (nearly) unwavering. If you can’t convey your ideas with passion and conviction, no one will listen to you. Be wary of your pessimism. Staying negative is no way to live, but that pessimism also seeps into your ability to predict financial outcomes. You can’t always assume the worst is coming. When the evidence doesn’t mesh with your theories, you must toss the theory away, not the evidence. Judge the quality of your decisions by the decision-making process, not by the outcome. When people are emotional, they rarely listen to reason and they rarely make good decisions. So advisors must learn to be psychologists and speak to their clients on an emotional level rather than spewing facts and academic theory and hoping it will stick. Clients shouldn’t dismiss more passive investing strategies because effort should never be confused with results. Links and Important Mentions Larry on LinkedIn Citi Corp A Random Walk Down Wall Street by Burton Malkiel Dimensional Bitcoin The Incredible Shrinking Alpha by Larry Swedroe & Andrew Berkin Subscribe and Stay in Touch Apple Podcasts Spotify Steve on LinkedIn Follow Buckingham Strategic Partners on Twitter