What if the most impactful financial advice isn’t about picking the right investment—but about understanding human behaviour, simplifying your life, and laughing along the way? In this episode of the Rational Reminder podcast, we’re joined by none other than David Chilton, author of the legendary personal finance book The Wealthy Barber. David shares insights from decades of experience helping Canadians improve their financial well-being through simplicity, frugality, and clarity. We dig into the enduring lessons of his 1989 classic, why the new edition took even longer to write, and what’s changed (and what hasn’t) in the personal finance landscape. From his views on insurance and home ownership to the psychology of spending, his entertaining yet practical approach makes complex ideas feel surprisingly accessible. We also explore the challenges of dollar-cost averaging, the role of financial advisors, and what it really costs to own a home. And yes, you’ll also hear how his mom helped launch Canada’s most successful cookbook series.

Key Points From This Episode:

(0:20) Introducing David Chilton and his impact on the PWL team

(3:22) Why Dave believes the original Wealthy Barber still holds up

(6:44) His enduring belief in term life insurance and investing the difference

(8:08) What he got wrong: mutual funds, high fees, and underestimating behavioural traps

(11:16) How the book’s success changed his life—and what stayed the same

(13:32) The unexpected tipping point that drove its breakout popularity

(15:13) Why he wrote The Wealthy Barber Returns after a long break

(16:41) What excites him most about the new revision and who it’s for

(18:29) His kids, Rob Carrick, and the housing crisis: why now was the time

(20:13) Transitioning to videos and podcasts to reach modern audiences

(22:41) The best part of being “The Wealthy Barber”—and what he’s learned from readers

(25:34) The surprising volume of portfolios people send him—and why he still reviews them

(27:12) What decades of portfolio analysis taught him about investor underperformance

(32:50) On lump sum vs. dollar-cost averaging—and the role of psychology

(37:52) Should you pay down debt or invest? Dave’s practical framework

(39:49) What a good financial advisor should (and shouldn’t) do

(43:08) The hidden costs of homeownership—and why people underestimate them

(48:29) Misleading conclusions about wealth, university, and home ownership

(50:40) The biggest home ownership mistakes people make

(52:24) Writing the new Wealthy Barber at the same card table

(53:25) Should you pay back the Home Buyer’s Plan early? Dave says no—and here’s why

(55:52) Why small optimizations—like minimizing RRSP fees—can really add up

(56:55) Spending rises with home size—and the real trap of lifestyle creep

(57:05) The most important financial variable of all: saving (and not borrowing too much)

Links From Today’s Episode: Meet with PWL Capital: https://calendly.com/d/3vm-t2j-h3p

Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582.

Rational Reminder Website — https://rationalreminder.ca/ 

Rational Reminder on Instagram — https://www.instagram.com/rationalreminder/

Rational Reminder on X — https://x.com/RationalRemind

Rational Reminder on TikTok — www.tiktok.com/@rationalreminder

Rational Reminder on YouTube — https://www.youtube.com/channel/

Rational Reminder Email — [email protected] Benjamin Felix — https://pwlcapital.com/our-team/

Benjamin on X — https://x.com/benjaminwfelix

Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/

Dan Bortolotti — https://pwlcapital.com/our-team/

Dan Bortolotti on LinkedIn — https://ca.linkedin.com/in/dan-bortolotti-8a482310

Cameron Passmore — https://pwlcapital.com/our-team/

Cameron on X — https://x.com/CameronPassmore

Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/

Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com)

In this episode of the Rational Reminder Podcast, Ben Felix and Dan Bortolotti celebrate the show’s 7th anniversary with a conversation centered around timeless investing wisdom. Drawing from a vibrant thread in the Rational Reminder community, they unpack dozens of quotes that distill decades of financial insight into actionable mantras. What begins as a curated list of one-liners quickly evolves into a masterclass on the behavioral and practical realities of long-term investing. From “pay yourself first” to “diversification is the only free lunch,” Ben and Dan explore how psychological resilience, humility, and clear planning matter more than predictive genius. The quotes spark deep discussions on topics ranging from portfolio construction and risk perception to fees, fear, and investor behavior—each one contextualized with real-world examples.

Key Points From This Episode:

(0:04) Celebrating 7 years of the podcast and its growing impact across video and audio platforms.

(1:33) Reflecting on PWL’s evolution and the value-aligned advisors looking to join.

(8:00) Introducing the main topic: timeless investing quotes from the Rational Reminder community.

(10:24) “Pay yourself first”: Why savings matter more than returns early on.

(14:06) The flaws in one-size-fits-all savings rules like “save 10% of your income.”

(15:07) “The investor’s worst enemy is himself”: Behavioral finance and investor psychology.

(17:17) “This time is different”: Templeton’s warning against market narratives and FOMO.

(20:31) “Have a philosophy you can stick with”: Why strategy persistence matters more than perfection.

(23:59) ARK as a case study: Conviction versus performance-chasing.

(26:38) Buffett on risk: Be ready for 50% drawdowns—even in diversified portfolios.

(28:58) The global market portfolio: Sharpe and Fama’s starting point for asset allocation.

(31:50) “Far more money is lost preparing for corrections”: Lynch on market timing mistakes.

(35:18) Volatility is emotional, not just mathematical—especially in crises like COVID or 2008.

(40:29) Charles Ellis: “Risk is not having the money when you need it.”

(42:08) “Volatility is the price of admission”: Embracing risk to pursue long-term returns.

(44:30) Ken Fisher: “Normal returns are extreme.” Why market behavior is rarely average.

(47:16) “Risk is what’s left when you think you’ve thought of everything.” Planning for the unknown.

(49:07) Life has a fat tail: LTCM and the perils of underestimating extreme events.

(50:25) “Make sure you’re at the table, not on the menu”: Cochrane on avoiding bad financial products.

(52:31) Bogle: “We get precisely what we don’t pay for.” Why low-cost beats high-fee.

(55:13) Trading and over-monitoring: Why “doing less” often means better returns.

(57:02) “It ain’t what you don’t know…”: Humility in the face of market uncertainty.

(59:26) “Diversification is the only free lunch”: Reducing risk without reducing expected return.

(1:00:35) Bogle: “Don’t look for the needle. Just buy the haystack.”

(1:02:38) Focus on what you can control: Savings, costs, asset allocation—not market returns.

Links From Today’s Episode: Meet with PWL Capital: https://calendly.com/d/3vm-t2j-h3p

Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582. Rational Reminder Website — https://rationalreminder.ca/ 

Rational Reminder on Instagram — https://www.instagram.com/rationalreminder/

Rational Reminder on X — https://x.com/RationalRemindRational Reminder on TikTok — www.tiktok.com/@rationalreminder

Rational Reminder on YouTube — https://www.youtube.com/channel/

Rational Reminder Email — [email protected]Benjamin Felix — https://pwlcapital.com/our-team/

Benjamin on X — https://x.com/benjaminwfelix

Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/

Dan Bortolotti — https://pwlcapital.com/our-team/

Dan Bortolotti on LinkedIn — https://ca.linkedin.com/in/dan-bortolotti-8a482310

Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com)

What if index funds weren’t as “passive” as you think? In this episode of the Rational Reminder, we are joined by Jim Rowley, Global Head of Investment Implementation Research, and Andy Mack, Head of US Equity Portfolio Management at Vanguard. These two experts offer a rare, behind-the-scenes look into what it really takes to run some of the world’s largest index funds—and it’s far from “set it and forget it.” From real-time trading decisions to managing $7 trillion globally, Jim and Andy walk us through how Vanguard implements index strategies with a precision that rivals any active manager. They challenge the traditional labels of passive versus active and show how thoughtful implementation, securities lending, FX execution, and IPO participation can add real value for investors—even in low-cost index products.

Key Points From This Episode:

(0:04) Why Vanguard’s team was the ideal follow-up to Marco Sammon’s index research

(1:55) Why index funds aren’t as simple as they seem: rebalancing, risk, and strategy

(2:50) “Passive” is a misnomer: why index fund management involves active decisions

(4:42) What excites Jim and Andy about index fund implementation

(7:16) Risk-managed opportunities: how Vanguard adds value during secondary offerings

(8:02) Debunking the active vs. passive label—think in terms of strategy characteristics

(9:41) The subjective calls behind index construction and market definitions

(12:00) The goal of a market-cap weighted index fund and how Vanguard tracks it

(13:28) Why tracking error matters—and when it becomes a business risk

(15:48) Indexing’s advantage: predictable relative performance for portfolio construction

(16:15) The real complexity of daily index fund trading and execution strategy

(17:16) Vanguard’s unique approach: PMs and traders are the same person in equities

(18:52) The scale of VTI: how 24 global PMs manage trillions across time zones

(20:48) Why Vanguard’s culture treats every trade like it’s client money

(22:24) Andy’s story of building Vanguard’s FX desk and the hundreds of millions saved

(24:04) Quant vs. human judgment in index implementation—why both matter

(26:50) How fixed income index funds balance risk, liquidity, and security selection

(27:46) Tools traders use to minimize price impact: algos, limits, and timing strategies

(29:09) How index rebalancing impact has decreased thanks to market evolution

(31:36) The hidden mechanics behind index inclusion/exclusion and price effects

(33:40) Do index funds distort prices? Vanguard’s view on elasticity and ownership

(35:55) Stock dispersion and the case for continued price discovery

(38:09) Why using passive funds doesn’t mean being a passive investor

(43:15) Jim’s research: how “passive” funds are actively deployed by advisors

(50:43) How Vanguard handles IPOs, buybacks, and market composition shifts

(54:45) Active corporate action management: cash mergers, elections, and strategy

(55:27) Responding to Marco Sammon’s critiques on market timing and turnover

(58:55) What would change if rebalancing were less frequent?

(1:00:34) How securities lending and market advocacy add ongoing value

(1:04:42) Should Vanguard launch a flexible, non-indexed total market fund?

(1:06:26) Andy’s biggest concern: system risks and rebalance day challenges

(1:07:08) Jim’s biggest concern: index funds aren’t a free pass—investors still need discipline

(1:08:03) Defining success: alignment with investors and living a balanced life

Links From Today’s Episode: Meet with PWL Capital: https://calendly.com/d/3vm-t2j-h3p

Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582. 

Rational Reminder Website — https://rationalreminder.ca/ 

Rational Reminder on Instagram — https://www.instagram.com/rationalreminder/

Rational Reminder on X — https://x.com/RationalRemind

Rational Reminder on TikTok — www.tiktok.com/@rationalreminder

Rational Reminder on YouTube — https://www.youtube.com/channel/

Rational Reminder Email — [email protected]

Benjamin Felix — https://pwlcapital.com/our-team/

Benjamin on X — https://x.com/benjaminwfelix

Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/

Dan Bortolotti — https://pwlcapital.com/our-team/

Dan Bortolotti on LinkedIn — https://ca.linkedin.com/in/dan-bortolotti-8a482310

Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com).

What if early RRSP withdrawals aren’t always the tax-smart move they’re made out to be? In this special AMA edition of the Rational Reminder podcast, Ben and Cameron are joined by PWL Financial Planner Louai Bibi for a wide-ranging discussion on RRSP decumulation strategies, insurance planning, and the practical complexities that real clients face when theory meets reality. Ben walks through a listener’s case study and shares insights from colleague Melissa on why early RRSP withdrawals (a.k.a. “meltdown” strategies) are not always beneficial—especially when viewed through a present-value lens. Louai contributes in-the-trenches experience, highlighting how client goals (estate vs. living net worth) and asset allocation can significantly influence what makes sense. In the second half, Louai delivers a comprehensive walkthrough of how PWL approaches life, disability, and critical illness insurance planning—not as salespeople, but as fiduciaries. You’ll hear why the right coverage isn’t one-size-fits-all, how survivor models are used to project financial impacts, and why the smallest, cheapest policy can still make a life-changing difference.

Key Points From This Episode:

(0:00:04) Introduction and full-circle moment: Louai Bibi joins the show.

(0:01:48) Reflections on the first PWL employee summit and One Digital integration.

(0:06:30) Upcoming Rational Reminder meetups in Victoria and Vancouver.

(0:07:40) Steve’s question: Should he be melting down his growing RRSP?

(0:09:15) Ben outlines a detailed client case where early withdrawals had minimal benefit.

(0:12:10) Key takeaway: Present value of taxes matters more than total lifetime taxes.

(0:13:50) Melissa’s advice: Model your specific situation, not just follow YouTube tips.

(0:15:56) Louai adds: The impact on future investment growth and taxable account drag.

(0:17:28) Systematically reviewing RRSP strategies annually in November.

(0:21:12) Taxes and portfolio construction: Home country bias, withholding tax, and more.

(0:22:11) The importance of tax diversification—lessons from the capital gains inclusion saga.

(0:23:11) RESP withdrawals and CRA’s definition of “reasonable” expenses.

(0:25:41) Fiduciary standards in Canada: Why sweeping change is unlikely.

(0:26:29) Most influential ideas from 300+ episodes: Market beliefs, information overload, and Die With Zero.

(0:34:36) Time, meaning, and memories: A shift in life perspective through the podcast.

(0:38:47) Louai’s top 3 lessons: Unified philosophy, consumption smoothing, and homeownership myths.

(0:42:21) Deep dive: How PWL approaches life, disability, and critical illness insurance.

(0:45:00) Life insurance: Survivor modeling, planning trade-offs, and permanent vs. term.

(0:51:32) Disability insurance: Hidden risks in group coverage and income replacement importance.

(0:56:36) Critical illness insurance: A real story about an inexpensive policy that changed a life.

(1:00:07) Ben’s experience with testicular cancer and hindsight on CI coverage.

(1:01:45) Teaser: A new disclaimer for reading podcast reviews.

(1:02:08) After-show: MobLand, The Sopranos, and the nostalgia of Animal Kingdom.

Links From Today’s Episode: Meet with PWL Capital: https://calendly.com/d/3vm-t2j-h3p

Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582. 

Rational Reminder Website — https://rationalreminder.ca/ 

Rational Reminder on Instagram — https://www.instagram.com/rationalreminder/

Rational Reminder on X — https://x.com/RationalRemind

Rational Reminder on TikTok — www.tiktok.com/@rationalreminder

Rational Reminder on YouTube — https://www.youtube.com/channel/

Rational Reminder Email — [email protected]Benjamin Felix — https://pwlcapital.com/our-team/

Benjamin on X — https://x.com/benjaminwfelix

Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/

Cameron Passmore — https://pwlcapital.com/our-team/

Cameron on X — https://x.com/CameronPassmore

Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/

Louai Bibi — https://pwlcapital.com/our-team/

Louai Bibi on LinkedIn - https://ca.linkedin.com/in/louaibibi

Louai Bibi on X -  https://x.com/louaibibi

Editing and post-production work for this episode was provided by The Podcast Consultant (https://thepodcastconsultant.com).

What happens when your favourite financial educator’s identity is hijacked by scammers? In this episode, Ben and Cameron pull back the curtain on a disturbing but increasingly common reality: sophisticated scammers using Ben’s name, voice, and online content to steal from unsuspecting investors. Ben breaks down exactly how these scams work—everything from fake WhatsApp investment groups and cloned emails to AI-generated voice notes and “pig butchering” scams that promise guaranteed returns. You’ll hear about pump-and-dump operations, shady PDFs full of financial nonsense, and how scammers prey on optimism, credibility, and fear of missing out.

Key Points From This Episode:

(0:04) Why the Rational Reminder podcast builds connections—and unintended consequences of trust

(1:58) The hidden value of the podcast’s reach: referrals and relationships that can’t be measured

(4:03) How a last-minute topic pivot turned into an urgent discussion on scams

(5:24) Why investment scams are more sophisticated—and dangerous—than ever

(6:16) AI voice clones and impersonation: How deepfakes make scams harder to spot

(9:26) Why specific scam education works better than general warnings

(12:29) Source credibility: Why scammers use trusted names to win trust fast

(15:23) Ben’s firsthand story of infiltrating a fake “Ben Felix” WhatsApp trading group

(19:57) Pump-and-dump in real time: How Ben tracked a fraudulent stock scam

(23:39) The email scam that used Ben’s name to pitch “secret” investments

(25:08) YouTube comment scams: the “fake advisor” trap and pig butchering explained

(31:15) How scammers use financial jargon that sounds smart—but means nothing

(34:52) The classic red flag: promises of guaranteed, high returns with zero risk

(41:23) Financial planning hot takes: unconventional views from the Rational Reminder Community

(49:44) Upcoming road trips and community meetups for Rational Reminder listeners

Papers From Today’s Episode:

https://zbib.org/e42750e4157e468d83fc633b40ddb0d1

Links From Today’s Episode: Meet with PWL Capital: https://calendly.com/d/3vm-t2j-h3p

Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582.

Rational Reminder Website — https://rationalreminder.ca/ 

Rational Reminder on Instagram — https://www.instagram.com/rationalreminder/

Rational Reminder on X — https://x.com/RationalRemind

Rational Reminder on TikTok — www.tiktok.com/@rationalreminder

Rational Reminder on YouTube — https://www.youtube.com/channel/

Rational Reminder Email — [email protected]

Benjamin Felix — https://pwlcapital.com/our-team/

Benjamin on X — https://x.com/benjaminwfelix

Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/

Cameron Passmore — https://pwlcapital.com/our-team/

Cameron on X — https://x.com/CameronPassmore

Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/

In this episode, we welcome back Rob Carrick—one of Canada’s most trusted personal finance journalists—for his third appearance on the Rational Reminder podcast. Rob recently retired after an incredible 27-year career at The Globe and Mail, where he shaped how millions of Canadians think about investing, advice, and their money habits. Rob joins Ben, Cameron, and Dan to reflect on the biggest lessons from his decades-long career, the state of Canadian financial advice today, and why young Canadians face headwinds unlike any previous generation. From the shift from mutual funds to ETFs and the rise of DIY investing to the dangers of overestimating stock returns and underestimating inflation’s bite—Rob shares practical, timeless wisdom for every generation of investor. We also hear Rob’s frank thoughts on how the financial industry fails seniors, why Canadians stick with the big banks despite better options, and what stay the course really means when markets inevitably crash again. 

Key Points From This Episode:

(0:00:04) Rob Carrick returns for his third appearance, marking his retirement from The Globe and Mail

(0:06:39) Why it’s harder than ever to be good with money in the social media age

(0:08:19) How longer lifespans are reshaping traditional retirement timelines

(0:09:51) The evolution of financial advice: from mutual fund sales to real planning

(0:11:45) How regulation, ETFs, and self-interest changed the advisory industry

(0:12:45) The rise of DIY investing in Canada: from brokers to discount online platforms (0:14:51) Why some investors still struggle to embrace ETFs

(0:17:11) The flip side of frictionless DIY investing—when simplicity fuels speculation

(0:18:19) How realistic are today’s stock return expectations?

(0:20:03) The true challenge isn’t average returns—it’s enduring the volatility

(0:24:01) Why staying the course should really mean buying the dip

(0:26:04) The generational reality check: how boomers bought homes and why today’s young people can’t

(0:29:03) How advisors can adjust advice for younger clients facing new headwinds

(0:31:39) Should 25-year-olds give up or go all in? Rob’s advice for young investors

(0:35:29) The myth of home-run investing and why steady, boring investing works

(0:37:04) Why inflation has done more damage than any stock market crash

(0:39:50) How the financial industry ignores seniors—and what needs to change

(0:43:32) Canadians’ blind loyalty to big banks and why you should try an alternative

(0:46:29) How Rob will define success in retirement—and his parting advice for listeners

Links From Today’s Episode: Meet with PWL Capital: https://calendly.com/d/3vm-t2j-h3p

Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582.

Rational Reminder Website — https://rationalreminder.ca/ 

Rational Reminder on Instagram — https://www.instagram.com/rationalreminder/

Rational Reminder on X — https://x.com/RationalRemind

Rational Reminder on TikTok — www.tiktok.com/@rationalreminder

Rational Reminder on YouTube — https://www.youtube.com/channel/

Rational Reminder Email — [email protected]

Benjamin Felix — https://pwlcapital.com/our-team/

Benjamin on X — https://x.com/benjaminwfelix

Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/

Dan Bortolotti — https://pwlcapital.com/our-team/

Dan Bortolotti on LinkedIn — https://ca.linkedin.com/in/dan-bortolotti-8a482310

Cameron Passmore — https://pwlcapital.com/our-team/

Cameron on X — https://x.com/CameronPassmore

Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/

Episode 108: William Bernstein - https://rationalreminder.ca/podcast/108

In this episode, we’re joined by Martijn Cremers, Dean of the Mendoza College of Business at the University of Notre Dame and co-author of the groundbreaking 2009 paper that introduced the concept of Active Share. Martijn brings fresh nuance to the long-standing debate over active versus passive management, challenging decades of conventional wisdom built on the foundational 1997 Carhart paper. With his comprehensive research, Martijn argues that dismissing active management may be overly simplistic—especially in less efficient markets like bonds, small-cap equities, or emerging markets. Together, we explore how empirical support for passive superiority has softened in recent decades, the overlooked structural flaws in performance benchmarks, and how closet indexing quietly undermines the active management space. Martijn outlines the three pillars of active success—skill, conviction, and opportunity—and makes a compelling case for patient, high active share strategies that persist over time. 

Key Points From This Episode:

(0:01:24) Introduction to Martijn Cremers and his influential work on Active Share

(0:04:15) Breaking down the “conventional wisdom” on active management post-Carhart

(0:07:19) Why passive benchmarks like Fama-French factors may create misleading comparisons

(0:09:38) Reviewing persistence of outperformance in high active share funds

(0:12:40) Evaluating Sharpe’s arithmetic and how market evolution challenges zero-sum assumptions

(0:15:58) The long-term decline of active funds and the influence of concentrated indexes

(0:18:30) The paradox of skill, ETFs with high active share, and the survival of active managers

(0:21:18) Revisiting active management in underexplored asset classes: bonds, small caps, emerging markets

(0:23:20) The definition and calculation of Active Share

(0:25:01) Active Share vs. Tracking Error: complementary tools, not substitutes

(0:27:22) What level of active share signals closet indexing? Why 60–70% is the key threshold

(0:30:49) Performance persistence and why combining high Active Share with patience matters

(0:34:05) The concept of the “active fee” and how much you’re really paying for stock selection

(0:36:51) Why fund size and team changes can erode active share

(0:38:17) Three pillars of successful active management: skill, conviction, and opportunity

(0:40:13) The challenge of being a patient manager in an impatient world

(0:42:25) How Active Share was received by academics and practitioners

(0:44:18) Responding to critics: the 2016 FAJ paper “Deactivating Active Share”

(0:46:56) Why dispersion in high active share funds can enhance portfolio diversification

(0:49:21) Who should pursue high active share strategies—and who shouldn’t

(0:51:40) Active share in fixed income: Why passive bond funds are often far from passive

(0:53:51) Key structural differences between equity and bond indexing

(0:55:25) Why bond index funds have high active share and hidden tracking error

(0:57:36) Why positive skewness (a key argument for equity indexing) doesn’t apply to bonds

(0:59:22) Performance of active bond funds: modest but consistent outperformance

(1:00:02) Why active bond funds remain popular: liquidity, trading frictions, and benchmark limitations

Links From Today’s Episode: Meet with PWL Capital: https://calendly.com/d/3vm-t2j-h3p

Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582. Rational Reminder Website — https://rationalreminder.ca/ 

Rational Reminder on Instagram — https://www.instagram.com/rationalreminder/

Rational Reminder on X — https://x.com/RationalRemindRational Reminder on TikTok — www.tiktok.com/@rationalreminder

Rational Reminder on YouTube — https://www.youtube.com/channel/

Rational Reminder Email — [email protected]Benjamin Felix — https://pwlcapital.com/our-team/

Benjamin on X — https://x.com/benjaminwfelix

Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/

Dan Bortolotti — https://pwlcapital.com/our-team/

Dan Bortolotti on LinkedIn — https://ca.linkedin.com/in/dan-bortolotti-8a482310

Cameron Passmore — https://pwlcapital.com/our-team/

Cameron on X — https://x.com/CameronPassmore

Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/

Episode 316: Andrew Chen - https://rationalreminder.ca/podcast/316

Episode 212: Ralph S.J. Koijen - https://rationalreminder.ca/podcast/212

Episode 220: Jonathan Berk & Jules Van Binsbergen - https://rationalreminder.ca/podcast/220

Episode 346: Hendrick Bessembinder - https://rationalreminder.ca/podcast/346

Papers From Today’s Episode:

https://zbib.org/2224f8de634743fb8f33a68009b8fcff

What if holding just a few “winning” stocks is riskier than it seems? In this episode, Ben and Cameron explore the hidden dangers of concentrated portfolios and unpack the data that makes a strong case for diversification. Drawing from research by Hendrik Bessembinder, J.P. Morgan, and others, Ben lays out the harsh reality behind individual stock returns: the odds are stacked against long-term success. From skewed return distributions and catastrophic losses to behavioral traps like the endowment effect and familiarity bias, this conversation breaks down why most stock pickers lose—and why diversification remains the only “free lunch” in investing. Whether you're holding onto a single stock for tax reasons, overconfidence, or just inertia, this episode is a must-listen reality check on portfolio risk. They also share thoughts on advisor adoption of indexing, the slow shift in Canada, and how a Rational Reminder YouTube video sparked debate between stock pickers and indexers in the comments section. For anyone navigating concentrated positions—voluntarily or otherwise—this episode is packed with data-driven insight and real-world takeaways.

Key Points From This Episode:

(0:00) Welcome to Episode 363: catching up in person and the value of working together in-office.

(1:07) Why advisors are slow to adopt indexing—and how culture, compensation, and inertia play a role.

(2:58) Demand is rising: indexing awareness among young advisors and investors continues to grow.

(4:08) Main topic: The hidden risks of individual stock concentration.

(5:40) The Nortel example: taxes, timing, and the illusion of "free" stock.

(6:51) Individual stocks are far riskier than most people realize—especially recent winners.

(9:09) Most investors hold between 3–7 stocks. Why that’s a problem.

(11:29) Portfolio concentration = fugu prepared by an amateur chef.

(12:45) Diversification reduces risk without reducing expected return.

(14:04) JP Morgan’s “Agony & Ecstasy” report: 44% of stocks suffer catastrophic losses.

(16:26) Why investors overweight the chance of a big win and underweight the risk of losses.

(17:07) The reality of skewed returns: a few big winners, many losers.

(24:35) The 2023 study on concentrated stock positions: recent top performers underperform the most.

(28:40) How many stocks do you need for real diversification? Way more than 20–30.

(32:00) Wealth dispersion and the long-term consequences of concentration.

(35:24) Why even 100-stock portfolios only beat the market 47.5% of the time.

(36:55) Taxes, control, and psychological hurdles make diversifying even harder.

(38:14) Diversification depends on your preference for risk and skewness—but beware the odds.

(39:08) Behind the scenes: Ben’s research process and content development workflow.

(43:14) Ben’s guest appearance on Morningstar’s The Long View.

(44:00) Meetups, t-shirt scarcity, and what’s next for PWL outreach.

Links From Today’s Episode: Meet with PWL Capital: https://calendly.com/d/3vm-t2j-h3p

Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582. Rational Reminder Website — https://rationalreminder.ca/ 

Rational Reminder on Instagram — https://www.instagram.com/rationalreminder/

Rational Reminder on X — https://x.com/RationalRemindRational Reminder on TikTok — www.tiktok.com/@rationalreminder

Rational Reminder on YouTube — https://www.youtube.com/channel/

Rational Reminder Email — [email protected]Benjamin Felix — https://pwlcapital.com/our-team/

Benjamin on X — https://x.com/benjaminwfelix

Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/

Cameron Passmore — https://pwlcapital.com/our-team/

Cameron on X — https://x.com/CameronPassmore

Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/`

Episode 346: Hendrik Bessembinder - https://rationalreminder.ca/podcast/346

Papers From Today’s Episode: 

‘The Agony & The Ecstasy’ - https://privatebank.jpmorgan.com/nam/en/insights/latest-and-featured/eotm/the-agony-the-ecstasy

‘Why Index Works’ - https://www.top1000funds.com/wp-content/uploads/2017/07/Why-indexing-works.pdf

‘Underperformance of Concentrated Stock Positions’ - https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4541122

‘How Many Stocks Should You Own?’ - https://ndvr.com/journal/how-many-stocks-should-you-own

‘Fund Concentration: A Magnifier of Manager Skill’ - https://discovery.researcher.life/article/fund-concentration-a-magnifier-of-manager-skill/67964b7ccc9d3cae87761f6ef19241a0

What if the hardest part of investing isn’t building a portfolio—but sticking to it? In this AMA edition of the Rational Reminder podcast, Ben Felix and Dan Bortolotti tackle listener questions ranging from sustainable retirement withdrawals to the dangers of structured products, with plenty of philosophical insights on risk, behavior, and financial planning. The episode opens with a deep dive into the 4% rule, exploring how time horizon, asset allocation, and global data can shift the definition of “safe.” They also explore the behavioral challenges of the “boring middle” of investing and why consistency may be the greatest alpha. Other standout segments include a sharp critique of bank-sold structured notes, an evidence-based takedown of trend following, and a fascinating discussion on the long-term impact of demographic shifts and index investing. Throughout, Ben and Dan blend technical insight with practical wisdom and academic research, delivering a thoughtful and entertaining conversation for both DIY investors and those working with advisors.

Key Points From This Episode:

(0:01:07) What the latest data says about safe withdrawal rates, especially for early retirees with 100% equity exposure.

(0:08:45) How variable vs. fixed withdrawals affect outcomes—and the trade-offs retirees must consider.

(0:17:01) The behavioral risks of the “boring middle” and how automation or advice helps investors stay disciplined.

(0:26:13) Reflections on market crashes—why hindsight downplays the emotional reality of volatility.

(0:33:27) Commission conflicts: Why bank advisors push structured notes and the incentives behind them.

(0:44:22) Education vs. malice: Are bad financial advisors untrained, conflicted, or both?

(0:49:08) Are structured notes ever justified? (Spoiler: very rarely.)

(0:56:44) Trend following: Legitimate strategy or fancy market timing? Examining the live track records.

(1:02:52) Diversifying your life like a portfolio: Applying the PERMA model to personal growth.

(1:10:18) The one use of leverage that actually makes sense—and why most others don’t.

(1:14:20) Will aging demographics crash ETF markets? What the data and theory suggest.

(1:19:02) Why even complex macro trends don’t justify deviating from a simple, low-cost investment plan.

Links From Today’s Episode: Meet with PWL Capital: https://calendly.com/d/3vm-t2j-h3p

Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582. Rational Reminder Website — https://rationalreminder.ca/ 

Rational Reminder on Instagram — https://www.instagram.com/rationalreminder/

Rational Reminder on X — https://x.com/RationalRemind Rational Reminder on TikTok — www.tiktok.com/@rationalreminder

Rational Reminder on YouTube — https://www.youtube.com/channel/

Rational Reminder Email — [email protected] Benjamin Felix — https://pwlcapital.com/our-team/

Benjamin on X — https://x.com/benjaminwfelix

Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/

Dan Bortolotti — https://pwlcapital.com/our-team/

Dan Bortolotti on LinkedIn — https://ca.linkedin.com/in/dan-bortolotti-8a482310

Episode 261: Felix Fattinger - https://rationalreminder.ca/podcast/261

Episode 314: Valentin Haddad - https://rationalreminder.ca/podcast/314

Episode 302: Michael Green - https://rationalreminder.ca/podcast/302

Episode 222: Cassie Holmes - https://rationalreminder.ca/podcast/222

Episode 278: Juhani Linnainmaa - https://rationalreminder.ca/podcast/278

Episode 212: Ralph S.J. Koijen - https://rationalreminder.ca/podcast/212

Episode 322: Marco Sammon — https://rationalreminder.ca/podcast/322Marco Sammon

Today, Ben plays lone host for the first time as we welcome Alex Edmans to the show. Alex is a Professor of Finance at London Business School as well as an accomplished speaker, author, investment banker, and financial advisor. To start, Alex describes his involvement in the formation of a new law in the UK before defining ‘misinformation’ and where confirmation bias fits in. Then, we assess the impact severity of confirmation bias, biased search versus biased interpretation, the role of generative AI in confirmation bias, and the levels of susceptibility within confirmation bias. We also explore the role of black-and-white thinking in concealing the truth, Alex’s Ladder of Misinference as seen in May Contain Lies, the 10,000-hour rule and other famous statements of misinformation, and how the idea of a narrative may influence how people interpret and misinterpret facts. We end with how to guard against the plague of data mining in research, data as evidence and what this implies for evidence in financial economics, and Alex shares helpful advice for determining truth in any circumstance.  

Key Points From This Episode:

(0:03:27) Alex Edmans walks us through the erroneous evidence that influenced a new UK law.

(0:07:13) Misinformation; living in a post-truth world; and where confirmation bias fits in.

(0:12:06) The severity of confirmation bias, and biased search versus biased interpretation.

(0:18:19) Unpacking generative AI and the susceptibility thresholds of confirmation bias.  

(0:21:25) How black-and-white thinking makes the truth more elusive.

(0:25:40) Understanding Alex’s Ladder of Misinference as seen in May Contain Lies.

(0:28:17) Debunking the 10,000-hour rule and other enduring statements of misinformation.

(0:38:10) The second step on the Ladder of Misinference: Why facts are not data.

(0:42:42) How the idea of a narrative influences how people interpret or misinterpret facts.

(0:44:25) Why data is not evidence, and examining the plague of data mining in research.

(0:48:36) Guarding against data mining and the consequences of investing with misinformation.  

(0:53:01) When data is evidence, and what this says about evidence in financial economics.

(0:55:49) Why evidence may not be proof.

(0:59:14) Practical advice for seeking the truth for important decisions and in everyday life.

Links From Today’s Episode:

Meet with PWL Capital — https://calendly.com/d/3vm-t2j-h3p

Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582. Rational Reminder Website — https://rationalreminder.ca/ 

Rational Reminder on Instagram — https://www.instagram.com/rationalreminder/

Rational Reminder on X — https://x.com/RationalRemind Rational Reminder on TikTok — www.tiktok.com/@rationalreminder

Rational Reminder on YouTube — https://www.youtube.com/channel/

Rational Reminder Email — [email protected] Benjamin Felix — https://pwlcapital.com/our-team/

Benjamin on X — https://x.com/benjaminwfelix

Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/

Alex Edmans — https://alexedmans.com/ 

Alex Edmans on LinkedIn — https://www.linkedin.com/in/aedmans 

Alex Edmans on X — https://x.com/aedmans 

London Business School — https://www.london.edu/ 

Fulbright Fellows | MIT — https://ir.mit.edu/projects/fulbright-fellows/ 

Atkins — https://www.atkins.com/ 

‘Matthew Walker's “Why We Sleep” Is Riddled with Scientific and Factual Errors’ — https://guzey.com/books/why-we-sleep/ 

‘Grit: The Power of Passion and Perseverance | Angela Lee Duckworth | TED’ — https://www.youtube.com/watch?v=H14bBuluwB8 

Books From Today’s Episode:

May Contain Lies — https://maycontainlies.com/ 

Grow the Pie — https://mybook.to/Grow-the-Pie

Outliers — https://www.amazon.com/Outliers-Story-Success-Malcolm-Gladwell/dp/0316017930 

Why We Sleep — https://www.goodreads.com/book/show/34466963-why-we-sleep 

Start with Why — https://www.amazon.com/Start-Why-Leaders-Inspire-Everyone/dp/1591846447 

Grit — https://www.amazon.com/Grit-Passion-Perseverance-Angela-Duckworth/dp/1501111108 

Papers From Today’s Episode:

‘CEO-Employees Pay Ratio, Employees’ Productivity and Firm Performance: Evidence from UK’ — https://www.researchgate.net/publication/391787593_CEO-Employees_pay_ratio_employees'_productivity_and_firm_performance_evidence_from_UK 

‘A Theory of Fair CEO Pay’ — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4294589