How does artificial intelligence and machine learning work and what are some examples of how individual investors can use AI in their investing.

In this episode you will learn:

• What is artificial intelligence, machine learning and deep learning.
• How is AI being used by different industries.
• How are AI models built with supervised and unsupervised learning.
• What are the components of a quantitative trading model and why it is insufficient to have an AI based stock ranking service.
• What are examples of AI based investment services and AI ETFs available to individuals.
• Why using AI to make investment decisions is so difficult.

Thanks to Warby Parker and WIX for sponsoring the episode.

For show notes and more information on this episode click here.

• [0:20] The two types of AI: rules-based & deep learning.
• [3:35] Some examples of artificial intelligence.
• [4:59] How machine learning systems work.
• [6:10] Supervised learning vs. unsupervised learning. 
• [9:10] Training deep learning AI models.  
• [12:46] Complications with how deep learning models come up with their answers.
• [14:31] The role of AI in predicting interest rates.
• [17:16] Understanding the different factors and components of AI models when it comes to investing.
• [19:43] David’s personal experience with an AI-based investing service. 
• [23:29] The Equbot and investing in ETFs.
• [25:46] The difficulties of using AI as an individual investor.

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How an asset class such as bonds can play different roles in your portfolio depending on your investment philosophy. 

In this episode you will learn:

• What are bonds and how can they be used in investment portfolios.
• What is interest rate anticipation.
• Why individuals have an advantage over institutions because they don't have to worry about outperforming a benchmark when it comes to bonds.
• Why U.S. interest rates could rise and fall from current levels.
• Why China is unlikely to sell all of its U.S. Treasury bonds.
• Examples of higher yielding strategies other than bonds that can benefit from falling interest rates.

Thanks to LinkedIn and Policygenius for sponsoring the episode.

For show notes and more information on this episode click here.

• [0:20] Generating a return on bonds. 
• [2:22] David explains why his own portfolio has not seen huge success in bonds.
• [3:56] What is the role of bonds in your portfolio?
• [6:41] A historical analysis of bonds.
• [9:55] The advantage of being an individual investor.
• [10:59] Speculating whether or not interest rates will go up or down.
• [14:50] The effects of the global economy on US bond behavior.
• [17:12] Strategies for diversifying your portfolio.
• [20:49] What to focus on as an individual investor in bonds.
• [22:19] Comparing the story of the carpenter and the tree to the life of a bond.
• [24:23] Deciding which path to choose for the use of your bonds.

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What are the pros and cons of having your entire investment portfolio invested in stocks versus a multi-asset class portfolio.

In this episode you’ll learn:

• What are some investment options if you want to be 100% invested in stocks.
• What attributes do you need as investor to have an all stock portfolio.
• Why it is difficult for active managers to outperform.
• Why an all Japanese stock portfolio has severely underperformed for 25 years and how it is possible a U.S. stock portfolio could suffer the same fate.
• What are the pros and cons of a multi-asset class portfolio.
• Overview of The Simple Path to Wealth by J.L. Collins
• Overview of Investing at Level 3 by James B. Cloonan

Thanks to WIX for sponsoring the episode. You can find show notes and more info on the episode by going here. You can learn about Plus Membership here.

For show notes and more information on this episode click here.

• [0:19] Can investing really be as simple as investing 100% of your portfolio in stocks?
• [4:16] Can diligent analysis actually outperform the index?
• [8:50] Understanding the difference between risk and volatility.
• [14:24] Knowing the risks associated with investing 100% in stocks.
• [19:17] The influence of the crowd and the misjudgments of investors on the market.
• [23:25] The benefits of diversifying your portfolio.
• [26:43] Investing 100% in stocks is viable, but it will come with ups and downs.

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How venture capital funded startups run up massive losses while justifying premium valuations using creative profitability metrics. These private companies are now going public allowing early investors to cash out with sizable gains. Meanwhile, these new publicly traded companies are added to equity indices, forcing passive managers to purchase them for their index funds and ETFs.

In this episode you will learn:

• How venture capital and initial public offerings work.
• How many venture capitalists are there and how have they performed.
• Why do startups stay private for longer and then go public while still incurring massive losses.
• What is blitzscaling.
• How startups use creative profitability metrics to attract investment capital at premium valuations
• How the current venture capital regime contributes to income inequality.
• How to get an allocation to an initial public offering. 

Thanks to Policygenius and TripActions for sponsoring the episode.

For show notes and more information on this episode click here.

• [0:19] What are IPOs?
• [2:12] The growth of new venture capital firms.
• [5:22] Blitzscaling and the willingness of venture capitalists to initially lose money.
• [8:33] How start-ups are choosing to exit.
• [11:18] The cost of going public at premium valuations.
• [13:26] The social and economic repercussions of blitzscaling.
• [18:16] How money-losing firms try to create a profit.
• [19:38] How unprofitable companies convince investors to buy at high valuations.
• [21:20] How individuals participate in venture capital without investing in an IPO.
• [24:08] Possible solutions to IPO’s problems.

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The three-step plan for becoming financially wealthy and how to be wealthy without the money.

In this episode you’ll learn:

• The results of two recent surveys on wealth, investing and retirement planning.
• How much money do people believe they need to consider themselves wealthy.
• How is wealth distributed across the U.S. population and how wealthy are Americans?
• Why you need a simple financial plan.
• What are the three steps to becoming financially wealthy.
• How to live like you are already wealthy.

Thanks to WIX and Sleep Number for sponsoring the episode.

For show notes and more information on this episode click here.

• [0:16] Schwab and Stash survey results.
• [2:49] Saving vs. living paycheck to paycheck.
• [4:29] How much does one need to be considered wealthy?
• [7:44] The value of social security.
• [9:23] The historical distribution of the country’s overall wealth.
• [11:33] The importance of having a plan.
• [13:38] Step One: increase your income.
• [15:10] Step Two: increase your savings percentage.
• [16:44] Step Three: increase your investment returns.
• [23:57] It’s not about optimization. It’s about diversifying and learning.
• [25:20] How to live like you are wealthy today.

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How individuals can have a positive impact while earning a good return investing. What are some examples of socially responsible and impact investments and platforms.

In this episode you’ll learn:

• What is the difference between impact investing, ESG and SRI?
• What are examples of socially responsible exchange traded funds.
• What are green bonds.
• What are some examples of impact investments and platforms.
• What are three ways we can have a positive impact as individuals.

Thanks to Blinkist and LinkedIn for sponsoring the episode.

For show notes and more information on this episode click here.

• [0:18] What is impact investing?
• [5:25] How impact investing is different from socially responsible investing.
• [8:50] Different opportunities to invest in a socially responsible way.
• [10:49] The impact that just one individual can have.
• [16:08] Keeping from negatively affecting the social and environmental fabric.
• [18:53] Generating positive impact with our investments.
• [20:01] Analyzing opportunities for truly impactful investments.
• [21:06] Impact Investing in the secondary market.
• [24:55] We each have to decide in what ways we will intentionally invest.

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How reducing exposure to a catastrophic event, such as running out of money during retirement, is a better strategy than trying to accurately predict a catastrophic event.

In this episode you’ll learn:

• How repeated exposures to low probability events can lead to ruin.
• How bonds have outperformed stocks over long stretches of time .
• How the success of retirement spending rules depend on the market environment and why a flexible approach to retirement spending makes the most sense given the wide variety of risk factors.

Thanks to WIX and Policy Genius for sponsoring the episode.

For show notes and more information on this episode click here.

• [0:20] Celebrating 250 episodes - thank you for listening!
• [1:51] 3 individuals who have greatly influenced David’s passion for good investing.
• [2:37] The sequence of life - and how you are affected by it - matters.
• [9:21] Defining risk and modifying exposure.
• [9:53] Case study: bonds vs. stocks.
• [15:34] The conditions for premium dividend yield.
• [18:00] Spending rules for retirement.
• [23:04] Considering worst-case scenarios.
• [26:10] Best strategies for retirement planning.

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Why respected investors and economists believe India will be the fastest growing economy and potentially best-performing stock market over the next two decades. What are the risks that could prevent that from happening?

In this episode you will learn:

• Why the economy in India hold so much promise and what are the risks.
• What is a reasonable return expectation for the India stock market.
• What are passive and active options for investing in India.

For show notes and more information on this episode click here.

• [0:18] What others are saying about Indian investments.
• [1:53] How India’s culture influences its investing.
• [5:41] A simplified glance at investing in India.
• [7:19] Current politics in India.
• [11:15] Positive aspects of India’s economy.
• [13:00] The challenges to consider.
• [16:59] What to invest in within India.
• [18:59] A look at active management in India.
• [21:07] In conclusion…should you invest in India?

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Here are precautions we can take to avoid ponzi schemes and not become victim to investment fraud.

In this episode you’ll learn:

• What are sources to determine the background of individuals and firms who are selling investment products and advice.
• What is the difference between registered investment advisors, registered investment companies and registered securities.
• How to analyze performance and fees to make sure they are acceptable before we invest.
• Why we need to be more wary if securities are not registered.

Thanks to LinkedIn and Sleep Number for sponsoring the episode.

For show notes and more information on this episode click here.

• [0:17] Personal stories surrounding fraudulent investment schemes.
• [2:38] The importance of authentic registration.
• [4:28] Who you are working with, and what are they promising?
• [6:34] Registered securities and registered investment companies.
• [8:41] Disclosing information properly when being compensated.
• [12:07] Deciphering performance claims.
• [16:37] Understanding what the fees are paying for.
• [18:37] Precautions to implement against fraud.

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

How the increase in indexing is leading to the creation of more stock indexes, most of which are used by active managers. How more indexing makes it more difficult for active managers to outperform even though managers are getting more skilled. 

Thanks to TripActions and WIX for sponsoring the episode.

For show notes and more information on this episode click here.

• [0:22] Definition of “alpha.”
• [0:49] Why there are so many indexes available.
• [4:35] The business of indexing.
• [7:01] The criteria that index providers use.
• [8:04] The cost of change in the index.
• [10:27] How some companies create ETFs.
• [12:44] Understanding the complexity of indexes and ETFs.
• [15:30] The influence of passive management on active management skills.
• [20:42] Understanding all the underlying facets of an index.

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.