In this episode, we unpack key tenants of investing and the quality of financial advice in Canada's banking industry. In our conversation, we present a list of lessons we have learned about investing, which has been consolidated from contributions by the Twitter community and the Rational Reminder Community. In our conversation, we discuss ways to beat the market, how narratives can impact the economy, and why timing the market is a bad investment approach. Discover why performance chasing is not a successful strategy, why incentives matter, and why economic growth is a poor predictor of investment success. Learn about the nuanced relationship between expected economic growth and stock returns, why wealth does not give you access to market-beating investments, and the effectiveness of investing in low-cost total market index funds. Finally, in our after-show segment, we delve into the quality of financial advice provided by Canada's six big banks, investment strategies, listener reviews, and much more. Gain valuable insights into navigating the complexities of investing and learn why simplicity, discipline, and skepticism towards overly complex or costly strategies are vital for financial success. Tune in now!

Key Points From This Episode:

(0:00:00) Introduction and outline of today’s topic: The Most Important Lessons in Investing.

(0:04:55) Why you cannot outsmart the markets and what it takes to beat the market.

(0:07:47) The notion that "this time is always different" during times of financial upheaval.

(0:10:45) Explore the forward-looking nature of markets and their impact on decision-making.

(0:12:08) Unpack the unreliability of market forecasts for making investment decisions.

(0:14:48) Hear why time in the market beats timing the market.

(0:16:11) Important aspects of funds and why investors should not chase portfolio performance.

(0:19:20) Learn about the role of incentives in the distribution of financial information.

(0:25:09) Common misconceptions about the link between economic growth and stock returns.

(0:27:28) We discuss the importance of good financial planning over portfolio management.

(0:30:51) Uncover the relationship between risk and expected returns in financial markets.

(0:32:33) How the risk-return relationship changes over different time horizons.

(0:34:59) Why fees and taxes matter and the nuances of permanent insurance. 

(0:41:55) Find out why there is no such thing as a perfect investment strategy.

(0:44:51) Tailoring your investment portfolio to meet your goals and sticking to it.

(0:46:48) Investigate why there is no such thing as a passive investment.

(0:50:59) Understanding why wealth does not provide access to market-beating strategies.

(0:53:22) Why diversification is the only free lunch in investing.

(0:58:58) Recommendations and pitfalls to avoid when assessing investments.

(1:01:02) What the structure of a financial portfolio looks like for most people.

(1:03:11) The aftershow: the state of Canadian banks, investment advice, and more.

Links From Today’s Episode:

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://twitter.com/RationalRemind

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

Rational Reminder Email — [email protected]Benjamin Felix — https://www.pwlcapital.com/author/benjamin-felix/ 

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

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

Cameron Passmore — https://www.pwlcapital.com/profile/cameron-passmore/

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

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

Mark McGrath on LinkedIn — https://www.linkedin.com/in/markmcgrathcfp/ Mark McGrath on X — https://twitter.com/MarkMcGrathCFP

The Economist — https://www.economist.com/ 

ARK Invest — https://ark-funds.com/

The Canadian Investor Podcast — https://thecanadianinvestorpodcast.com/

Episode 257: Giorgio Ugazio (Mr. RIP) — https://rationalreminder.ca/podcast/257

Mr. RIP on YouTube — https://www.youtube.com/@mr_rip

The Money Scope Podcast: Episode 9 — https://moneyscope.ca/2024/03/15/episode-9-taxable-investing-in-canada/

Book a meeting with a PWL Financial Planner — 

Books From Today’s Episode:

A Wealth of Well-Being — https://www.amazon.com/Wealth-Well-Being-Holistic-Approach-Behavioral/dp/1394249675

Wealthier — https://wealthierbook.com/

Papers From Today’s Episode: 

‘Where’s the Beef?’ — https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4035890

‘SPIVA® Canada Scorecard’ —  https://www.spglobal.com/spdji/en/documents/spiva/spiva-canada-year-end-2023.pdf

‘2018 Paper’ — https://doi.org/10.1093/rfs/hhy046

‘CBC Article’ — https://www.cbc.ca/news/business/marketplace-hidden-camera-banks-1.7142427

Dr. Randall Stutman is an author, highly sought-after speaker, and executive leadership coach to some of the world’s most exceptional CEOs, billionaires, and hedge fund managers. As the founder of the Admired Leadership Institute, he is widely recognized as a world-class authority on leadership strategy and style. Today, Dr. Stutman joins us to discuss the behaviours and skills that make admired leaders and how you can translate those characteristics and strategies into your financial decision-making process. Tuning in, you’ll learn about the importance of followership, find out why admired leadership is so rare, and hear some practical advice to help you make better decisions. We also discuss why you should actually disagree with your clients more often, why relationships are the cornerstone of any business, questions to ask yourself to find the right client or financial advisor, and much more. Don’t miss this fascinating and broad-reaching conversation on leadership and decision-making with specific applications for financial advice relationships!

Key Points From This Episode:

(0:03:36) A typical approach to leadership development (and why it doesn’t work).

(0:07:21) The two key qualities or characteristics of an admired leader.

(0:09:23) Benefits of followership to create change and implement decisions.

(0:10:28) A simple definition of leadership and why not everyone can be an admired leader.

(0:13:08) Why great leaders and great organizations are values-driven.

(0:16:15) Ways that consensus decision-making can hurt or strengthen an organization.

(0:23:02) Other shortcomings in the decision-making process and how to avoid them.

(0:27:29) Practical advice for financial advisors to become admired leaders.

(0:32:33) Why checklists should never be the focus of a conversation or relationship.

(0:33:52) Traits of admired leaders that financial consumers can emulate.

(0:35:55) The best way for a couple to reach agreed-upon financial goals.

(0:37:29) Tips for financial advisors to give better feedback and maintain relationships.

(0:44:30) What a successful relationship with a financial advisor looks like.

(0:46:07) How to avoid outcome bias for people who have been successful in the past.

(0:48:00) Rapid-fire time management strategies, hallmarks of effective meetings, what’s missing in virtual communication, what motivates people, and more.

(0:55:46) A very important metric by which Dr. Stutman defines success.

Links From Today’s Episode:

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://twitter.com/RationalRemind

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

Rational Reminder Email — [email protected]Benjamin Felix — https://www.pwlcapital.com/author/benjamin-felix/ 

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

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

Cameron Passmore — https://www.pwlcapital.com/profile/cameron-passmore/

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

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

Admired Leadership Institute — https://admiredleadership.com/

Episode 238: Prof. Ralph Keeney — https://rationalreminder.ca/podcast/238

Books From Today’s Episode:

Working Through Conflict: Strategies for Relationships, Groups, and Organizations — https://www.amazon.com/dp/0367461471/

Communication in Legal Advocacy (Studies in Communication Process) — https://www.amazon.com/dp/B09T21F8KX/

As human beings, our brains are wired to solve problems. This can make long-term investment strategies, like passive investing, surprisingly challenging, especially if you’re not accustomed to the ups and downs of the market – it can feel pretty unintuitive to stay the course when your instinct is to take more active steps to solve the problem! So, how can investors remain firm in their strategy and not get spooked by market changes? Joining us today to unpack this question is financial journalist, Nicolas Bérubé, whose new book From Zero to Millionaire: A Simple and Stress-Free Way to Invest in the Stock Market serves as a guide to investors on how to grow their wealth and achieve good portfolio diversification at a low cost. We talk with him about the contents of his book, his observations on financial media and its effect on investors, how to stay committed when making long-term investments, and more. We also spend the top half of the show discussing a popular idea we’ve seen posted by influencers online, namely that investing in stocks will give you a return of 10% or more per year on average, and the flaws in their arguments. Tune in for a deep dive into investor psychology, financial media, and much more!

Key Points From This Episode:

(0:01:42) A breakdown of the flaws in the trending online theory being posted by influencers claiming that investing in stocks will give you a return of 10% or more per year on average.

(0:09:17) Taking a longer-term view of the US stock market (and other global markets), how it’s changed in the past 100 years, and what this means for investors today.

(0:16:12) Relevant findings from various papers on US and global stock market returns, US stock market valuations, performance, the impact of survivorship bias, and more.

(0:27:01) Why it can be so difficult to capture market return as an investor, and a breakdown of how best to approach historical data.

(0:33:33) Talking with Nicolas Bérubé about what he learned from his failed options trade before he started studying markets and the research that helped him become a market optimist.

(0:38:24) An overview of Indo-American investor, Mohnish Pabrai, and what Nicolas learned from meeting him.

(0:41:05) Unpacking the difference between investing in the stock market and playing in the stock market and the importance of having an infinite vision when investing.

(0:44:52) How Nicolas would explain the benefits of index funds and index investing to a novice and why behaviour is the number one obstacle to investor outcomes.

(0:48:29) The effect of financial media on investors from Nicolas’s perspective as a journalist.

(0:51:52) Advice on whether to delegate your investment actions to a financial professional or do it yourself ie. automatic transfers using a robo advisor.

(0:56:14) What people should be looking for if they do seek out financial advice and Nicolas’s opinion on what investors struggle with most.

(0:59:58) Aftershow section: future topics for the show, why we’re excited to see more of Mark McGrath, updates on our 24 in 24 reading challenge, upcoming meetups, and more.

Links From Today’s Episode:

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://twitter.com/RationalRemind

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

Rational Reminder Email — [email protected] Benjamin Felix — https://www.pwlcapital.com/author/benjamin-felix/ 

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

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

Cameron Passmore — https://www.pwlcapital.com/profile/cameron-passmore/

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

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

Mark McGrath on LinkedIn — https://www.linkedin.com/in/markmcgrathcfp/ Mark McGrath on X — https://twitter.com/MarkMcGrathCFP

24 in 24 Reading Challenge — https://rationalreminder.ca/24in24

Nicolas Bérubé on LinkedIn — https://www.linkedin.com/in/nicolas-b%C3%A9rub%C3%A9-27b9b111b/

From Zero to Millionaire — https://fromzerotomillionaire.com/

The Motley Fool — https://www.fool.com/

Rob Carrick — https://www.theglobeandmail.com/authors/rob-carrick/

Andrew Hallam — https://andrewhallam.com/

Somebody Feed Phil — https://www.imdb.com/title/tt7752034/

Everybody Loves Raymond — https://www.imdb.com/title/tt0115167/

Shake Shack — https://shakeshack.com/#/

Figure 01 AI Robot Video on LinkedIn — https://www.linkedin.com/feed/update/urn:li:activity:7173681028664901634/

Books From Today’s Episode:

From Zero to Millionaire: A Simple and Stress-Free Way to Invest in the Stock Market — https://fromzerotomillionaire.com/

The Algebra of Wealth: A Simple Formula for Financial Security — https://www.amazon.com/Algebra-Wealth-Formula-Financial-Security/dp/0593714024

A Random Walk Down Wall Street: The Time-Tested Strategy for Successful Investing — https://www.amazon.com/Random-Walk-Down-Wall-Street/dp/0393358380

Everyone Believes It; Most Will Be Wrong: Motley Thoughts on Investing and the Economy — https://www.amazon.com/Everyone-Believes-Most-Will-Wrong-ebook/dp/B00655BGBG

The One-Page Financial Plan: A Simple Way to Be Smart About Your Money — https://www.amazon.com/One-Page-Financial-Plan-Simple-Smart/dp/1591847559

Setting the Table: The Transforming Power of Hospitality in Business — https://www.amazon.com/Setting-Table-Transforming-Hospitality-Business/dp/0060742763

Papers From Today’s Episode: 

‘The Equity Premium’ — https://onlinelibrary.wiley.com/doi/full/10.1111/1540-6261.00437

Scott Cederburg research: ‘Long-Horizon Losses in Stocks, Bonds, and Bills: Evidence from a Broad Sample of Developed Markets’ — https://www.paris-december.eu/sites/default/files//papers/2023/4393_scederburg_2023_complete.pdf

Jules H. Van Binsbergen Paper: Is The United States A Lucky Survivor: A Hierarchical Bayesian Approach — https://rodneywhitecenter.wharton.upenn.edu/wp-content/uploads/2020/12/30-20.Wachter.VanBinsbergen.pdf

Feeling stuck is a common human experience and almost all of us will go through it at some point in our lives. Whether it’s relationship struggles, dissatisfaction with work, an inability to progress financially, or a pending midlife crisis, all of these situations can bring up a range of mixed emotions like anxiety, fear, anger, and even numbness. We are joined today by Adam Alter, whose new book Anatomy of a Breakthrough: How to Get Unstuck When It Matters Most serves as a much-needed guide to help readers escape inertia and flourish in the face of freedom. Adam is a professor of marketing at New York University's Stern School of Business with an affiliated appointment in the New York University Psychology Department. His research is primarily focused on judgment, decision-making, and social psychology, and his two previous books, Irresistible and Drunk Tank Pink, are both highly acclaimed New York Times best-sellers. In today’s episode, we talk with Adam about the concept behind Anatomy of a Breakthrough, the many forms that feeling stuck can take, and what he has learned about getting unstuck. Tuning in you’ll learn about the fundamentals of goal-setting, why striving for excellence is infinitely more sustainable than settling for nothing less than perfection, and how learning to enjoy the journey will help you find meaning and avoid the aimlessness that can come after achieving your goal. We also get into the nature of breakthroughs, the role of luck and creativity, plus a whole lot more. To hear all of Adam’s thought-provoking insights and practical advice on getting unstuck, be sure to tune in!

Key Points From This Episode:

(0:00:18) Introducing today’s guest, Adam Alter, and the concept behind his new book Anatomy of a Breakthrough.

(0:05:41) An overview of the many ways that you can be financially stuck, the role of financial advisors, and when you should seek out help and guidance.

(0:09:04) Insight into the different types of stuckness and how to recognize when you’re stuck.

(0:12:42) Why people tend to question their lives with the arrival of a new decade.

(0:17:10) Unpacking the risks and benefits of major life decisions and the concept of lifequakes.

(0:20:25) The boundless nature of goal-setting and how it impacts the search for contentment.

(0:23:27) How lifequakes influence the search for contentment and how to prepare for them.

(0:26:00) What a breakthrough looks like, how it interacts with creativity, and the role of luck.

(0:35:17) A breakdown of the random impact rule; particularly in the context of careers.

(0:38:01) One key practical difference between striving for excellence versus perfection.

(0:40:05) The originality trap: why trying to do something completely new can cause paralysis.

(0:43:13) Understanding the plateau effect: why being stuck can actually be a sign of progress.

(0:44:23) The fundamentals of goal setting: the dangers of setting unachievable goals and the benefits of making it about the journey rather than the destination.

(0:49:03) Advice for processing the success of other; especially in the age of social media, and how Adam defines success.

Links From Today’s Episode:

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://twitter.com/RationalRemind

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

Rational Reminder Email — [email protected]Benjamin Felix — https://www.pwlcapital.com/author/benjamin-felix/ 

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

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

Cameron Passmore — https://www.pwlcapital.com/profile/cameron-passmore/

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

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

Adam Alter — https://adamalterauthor.com/

Adam Alter on LinkedIn — https://www.linkedin.com/in/adamleealter

Adam Alter on Twitter — https://twitter.com/adamleealter

Hal Hershfield — https://www.halhershfield.com/

Bruce Feiler — https://www.brucefeiler.com/

Books From Today’s Episode:

Anatomy of a Breakthrough — https://adamalterauthor.com/anatomy

Irresistible — https://adamalterauthor.com/irresistible

Drunk Tank Pink — https://adamalterauthor.com/drunk-tank-pink

In this episode, we explore the intricate world of home-country bias in investment decision-making and learn the secret sauce to effective communication and writing. We start by discussing the definition and influence of home-country bias and explore why investors tend to overweight their portfolios with domestic equities despite global opportunities. We dissect the home bias puzzle, the rationality behind bias, and the conditions under which home-country bias makes sense. Then, Mark McGrath joins us to unpack the complexities of segregated funds and why it might not be the investment product you were hoping for. Following that, we sit down with  Todd Rogers, a prominent behavioural scientist and professor, to discover the science behind effective communication. He explains how we adapt to different communication styles and techniques over time, the foundations of effective communication, and much more. Be sure to tune in as we unravel the complexities of investing, navigate the world of behavioural science, and bring you the tools you need for financial success!

Key Points From This Episode:

(0:00:00) Episode introduction and what listeners can expect.

(0:01:30) Definition of home-country bias and its influence on investors.

(0:04:25) Unpack the home bias puzzle and Canadian home bias trends.

(0:08:27) Discover the conditions when home bias may make sense.

(0:13:10) Relative economic standing: an important aspect of home-country bias.

(0:15:00) Explore home-country bias through a quantitative lens.

(0:20:28) Common concerns of overweighting a small market cap.

(0:27:21) Mark to Market: the good, bad, and complicated side of segregated funds.

(0:31:24) Dissect the proposed benefits of segregated funds.

(0:39:07) Discover the drawbacks and pitfalls of segregated funds.

(0:44:05) Alternatives to segregated funds and Mark’s main takeaways.

(0:46:50) Highlights from our conversation with Professor Vanessa Bohns.

(0:49:38) Introducing today’sguest Todd Rogers, behavioural scientist and professor.

(0:51:37) Learn about the science behind effective writing and communication.

(0:53:48) Thedecision-making process when receiving new information.

(0:56:18) Todd shares thesix principles of effective writing.

(0:58:28) When to send a message, why less is more, and tips for effectively communicating.

(1:06:32) Advice for using emojis and hyperlinks and the impact of bolding and highlighting.

(1:12:35) The impact of AI on effective writing and the importance of good writing.

(1:19:45) Final takeaways, book recommendations, listener reviews, and more!

Links From Today’s Episode:

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://twitter.com/RationalRemind

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

Rational Reminder Email — [email protected] Benjamin Felix — https://www.pwlcapital.com/author/benjamin-felix/

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

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

Cameron Passmore — https://www.pwlcapital.com/profile/cameron-passmore/

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

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

Mark McGrath on LinkedIn — https://www.linkedin.com/in/markmcgrathcfp/ Mark McGrath on X — https://twitter.com/MarkMcGrathCFP

Home-country Bias YouTube Video — https://www.youtube.com/watch?v=qYedjI03Q0g

Assuris — https://assuris.ca

Canadian Investor Protection Fund — https://www.cipf.ca/

The Money Scope Podcast — https://moneyscope.ca/

Professor Vanessa Bohns — https://www.vanessabohns.com/

Professor Vanessa Bohns on X — https://twitter.com/profbohns

Professor Vanessa Bohns on Instagram — https://www.instagram.com/profbohns/

Professor Vanessa Bohns on LinkedIn — https://www.linkedin.com/in/vanessa-bohns-33219710/

Professor Vanessa Bohns on Goodreads — https://www.goodreads.com/author/show/21035835.Vanessa_Bohns

Todd Rogers on LinkedIn — https://www.linkedin.com/in/todd-rogers-6ba447/

Todd Rogers on X — https://twitter.com/Todd_Rogers_

Harvard University — https://www.harvard.edu/

Analyst Institute — https://analystinstitute.org/

EveryDay Labs — https://www.everydaylabs.com/

The Behavioural Insights Team — https://www.bi.team/

Behavioral Science & Policy Association (BSPA) — https://behavioralpolicy.org/

Six Principles Checklist —

GPT-4 — https://openai.com/research/gpt-4

Women's Wealth: Investing Basics for Women Webinar —

Books From Today’s Episode:

You Have More Influence Than You Think — https://www.amazon.com/dp/1324005718/

Writing for Busy Readers — https://www.amazon.com/Writing-Busy-Readers-Communicate-Effectively/dp/0593187482

Index Funds: The 12-Step Recovery Program for Active Investors — https://www.amazon.com/Index-Funds-12-Step-Recovery-Investors-ebook/dp/B0CL2Z23CT/

The Elements of Style — https://www.amazon.com/Elements-Style-Fourth-William-Strunk/dp/020530902X

The Psychology of Money — https://www.amazon.com/Psychology-Money-Timeless-lessons-happiness/dp/0857197681

The Fund — https://www.amazon.com/Fund-Bridgewater-Associates-Unraveling-Street/dp/1250276934

Anatomy of a Breakthrough — https://www.amazon.com/Anatomy-Breakthrough-Unstuck-When-Matters/dp/1982182962

The Score That Matters — https://www.amazon.com/Score-That-Matters-Excellence-Yourself-ebook/dp/B0CGZ8HRXD

The Algebra of Wealth — https://www.amazon.com/Algebra-Wealth-Formula-Financial-Security/dp/0593714024

Papers From Today’s Episode:

‘Beyond the Status Quo: A Critical Assessment of Lifecycle Investment Advice’ — https://dx.doi.org/10.2139/ssrn.4590406

‘Global equity investing: The benefits of diversification and sizing your allocation’ — https://corporate.vanguard.com/content/dam/corp/research/pdf/Global-equity-investing-The-benefits-of-diversification-and-sizing-your-allocation-US-ISGGEB_042021_Online.pdf

In this episode, we delve into the world of mindfulness and meditation with renowned author and meditation advocate, Dan Harris. In our conversation, Dan shares his personal journey from a high-stress career in the news to discovering the transformative power of mindfulness meditation. We explore Dan's best-selling book, 10% Happier which chronicles his exploration into mindfulness practices after experiencing a panic attack on live television. We discuss how Dan's quest for inner peace led him to explore meditation, the core principles of Dan's 10% Happier philosophy, and how mindfulness can lead to incremental but significant improvements in happiness. Discover why Buddhism is a religion that skeptics can line up behind, the intersection of mindfulness and financial decision-making, and the importance of empathy and self-awareness for financial advisors. Gain insights into applying mindfulness principles to everyday life, strategies for building the skill of happiness, the basic steps to start meditating, and much more! Join us on this insightful journey as we explore how mindfulness can truly transform lives and empower individuals to live with greater purpose, happiness, and fulfillment with Dan Harris!

Key Points From This Episode:

(0:04:49) Dan shares his journey from a high-stress career in news to discovering mindfulness meditation.

(0:06:48) What mediation is, why he initially thought it was nonsense, and why he changed his mind.

(0:09:11) Unpack the idea of mindfulness and the science that backs up the claims.

(0:11:22) The main thesis of Buddhism and its link to meditation. 

(0:14:02) How mindfulness can help manage emotions, improve focus, and enhance relationships in everyday life. 

(0:15:48) He shares how difficult it was for him to embrace the concept of meditation. 

(0:21:12) Discover what motivated him to explore meditation and mindfulness practices. 

(0:21:12) Recommendations to start meditating and how long it takes to form a habit of it.

(0:26:56) Insights on applying mindfulness principles to financial decision-making. 

(0:28:29) Explore the benefits of meditation for the comparing mind and the wanting mind. 

(0:30:59) How mindfulness meditation has influenced his financial decision-making. 

(0:33:20) The principles of 10% Happier from the perspectives of a client and advisor. 

(0:35:45) Strategies for making your own happiness and cultivating contentment. 

(0:41:03) Transitioning from a career in news to focusing on mindfulness advocacy and podcasting. 

(0:42:32) His biggest lessons since writing the book and his most influential podcast guest. 

(0:48:26) Hear about Dan’s version of success and happiness.

Links From Today’s Episode:

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://twitter.com/RationalRemind

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

Rational Reminder Email — [email protected] Benjamin Felix — https://www.pwlcapital.com/author/benjamin-felix/ 

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

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

Cameron Passmore — https://www.pwlcapital.com/profile/cameron-passmore/

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

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

Dan Harris — https://danbharris.komi.io/

Dan Harris on X — https://twitter.com/danbharris

Dan Harris on Instagram — https://www.instagram.com/danharris/

Dan Harris on Facebook — https://www.facebook.com/DanHarrisABC

Dan Harris on YouTube — https://www.youtube.com/c/TenPercentHappier

Dan Harris on TikTok — https://www.tiktok.com/@danbharris

10% Happier — https://www.tenpercent.com/

Ten Percent Happier Podcast — https://www.tenpercent.com/podcast

‘Finding and Funding a Good Life’ — https://www.pwlcapital.com/finding-and-funding-a-good-life/

Dan Harris: Celebrating 10 Years of 10% Happier — https://www.symphonyspace.org/events/vp-dan-harris-10-happier-10-year-anniversary

Emma Seppälä — https://www.emmaseppala.com/

Dalai Lama — https://www.dalailama.com/

Joseph Goldstein — https://www.dharma.org/teacher/joseph-goldstein/

Books From Today’s Episode: 10% Happier — https://www.goodreads.com/en/book/show/18505796

After a year and a half hiatus from discussing Bitcoin, we felt compelled to explore the implications of the US Securities and Exchange Commission's approval of 10 spot Bitcoin ETFs for trading. In this episode, we dive into the recent news surrounding Bitcoin and its entry into the mainstream investment landscape through spot Bitcoin ETFs. To help us unpack this topic is Eric Balchunas, a seasoned ETF analyst at Bloomberg Intelligence and host of the Trillions Podcast. Eric brings a wealth of knowledge on ETFs and offers valuable insights into the intersection between traditional financial markets and the cryptocurrency space. Join us as we discuss the implications of Bitcoin ETFs trading on regulated exchanges and the impact on its overall anti-establishment identity, the intricacies of approved cash creation and redemption limitations, what Bitcoin ETFs are backed by, the transparency and potential vulnerabilities of Bitwise, and the complexities of navigating anti-money laundering aspects within Bitcoin transactions. You’ll learn how financial advisors are likely to leverage spot Bitcoin ETFs, who stands to benefit the most from Bitcoin ETFs, the broader implications for the investment landscape, why Bitcoin is like Tabasco sauce, and more! Tune in for a captivating exploration of Bitcoin's journey into the mainstream investment arena, with Eric Balchunas.

Key Points From This Episode:

• (0:04:29) Reasons that Canada officially embraced Bitcoin sooner than the USA. 
• (0:05:55) Why spot Bitcoin ETFs took longer to be approved by the SEC than futures ETFs. 
• (0:07:54) Which ETF regulations have changed to allow a spot Bitcoin ETF. 
• (0:09:42) Approved cash creation and redemption limitations.
• (0:12:46) What spot Bitcoin EFTs are backed by. 
• (0:17:15) Bitwise: how it demonstrates transparency and the potential for sabotage. 
• (0:19:38) How authorized participants will deal with anti-money laundering aspects of Bitcoin transactions. 
• (0:21:31) How spot Bitcoin ETFs have been trading relative to their net asset value. 
• (0:22:42) The amount of value flowing into Bitcoin ETFs. 
• (0:27:23) Differentiating Newborn Nine ETFs from one another. 
• (0:31:57) Benefits of Bitcoin being made available through an ETF. 
• (0:34:21) The impact spot Bitcoin ETFs have had on Bitcoin's identity. 
• (0:38:04) Who has benefited the most from the adoption of spot Bitcoin ETFs.
• (0:40:36) Comparing spot ETFs starting trade to what was predicted by crypto enthusiasts. 
• (0:44:36) Vanguard's decision to not allow the spot Bitcoin ETFs on their platform. 
• (0:48:19)How financial advisors will leverage spot Bitcoin ETFs. 

Links From Today’s Episode:

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://twitter.com/RationalRemind

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

Rational Reminder Email — [email protected] Benjamin Felix — https://www.pwlcapital.com/author/benjamin-felix/ 

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

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

Cameron Passmore — https://www.pwlcapital.com/profile/cameron-passmore/

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

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

Eric Balchunas on LinkedIn — https://www.linkedin.com/in/ericbalchunas/

Eric Balchunas on X — https://twitter.com/EricBalchunas

Bloomberg — https://www.bloomberg.com/

Trillions — https://www.bloomberg.com/podcasts/series/trillions

U.S. Securities and Exchange Commission — https://www.sec.gov/

Bitwise — https://bitwiseinvestments.com/

Bitwise Bitcoin ETF — https://www.sec.gov/Archives/edgar/data/1763415/000199937124000346/bitcoin-424b3_011024.htm

Coinbase — https://www.coinbase.com

BlackRock — https://www.blackrock.com

Grayscale Bitcoin Trust ETF (GBTC) — https://etfs.grayscale.com/gbtc

Vanguard — https://investor.vanguard.com/

Bitcoin — https://bitcoin.org

Books From Today’s Episode:

The Bogle Effect — https://www.amazon.com/Bogle-Effect-Vanguard-Investors-Trillions/dp/1637740719

In this episode, we welcome Rob Copeland, author of the recently released book The Fund: Ray Dalio, Bridgewater Associates, and the Unraveling of a Wall Street Legend. Rob, a finance reporter for The New York Times, provides a gripping account of the rise and unravelling of Ray Dalio and Bridgewater Associates. Bridgewater Associates, one of the prominent hedge funds on the planet, is synonymous with the legendary investor Ray Dalio. In our conversation, we delve into the intricacies of the company's investment portfolio, shedding light on the details that contribute to its success, and dissect Ray's supposedly revolutionary model of economic cycles. Discover the unconventional principles that shape Bridgewater's culture, from believability to radical transparency, and get a sneak peek into the bizarre Dot Collector app that fuels the company's operations. Gain insights into employee experiences at the company, the secret sauce to Ray’s success, the company’s track record in predicting market crashes, undisclosed aspects of Ray’s success story, and much more! Tune in now!

Key Points From This Episode:

• Details about the company’s investment management portfolio. (0:06:38)
• Dalio's model of economic cycles’ influence on the company’s investment approach. (0:09:13)
• Exploring the criticism toward Dalio's model of economic cycles. (0:10:13)
• How successful Dalio has been at predicting market crashes. (0:12:21)
• Bridgewater’s investment success track record. (0:14:40)
• Unpacking Dalio's principles and how he developed them. (0:16:16)
• Uncovering how Dalio's principles are perceived within Bridgewater and how they made the company successful. (0:18:56)
• Learn how believability and radical transparency work within Bridgewater. (0:20:58)
• The bizarre Dot Collector app and how the company leverages it. (0:24:57)
• Employees’ experiences of working at Bridgewater. (0:28:02)
• Rob’s opinion about Ray and how he compares to other hedge fund managers. (0:29:38)
• Hear about undisclosed aspects of Ray's success story. (0:34:52)
• Dalio and readers’ reactions since publishing the book. (0:37:17)
• Delving into the nuance factors explaining Bridgewater's success as a business. (0:40:18)
• How the company will continue to function post-Ray Dalio. (0:43:06)
• What Rob hopes readers will take away after reading the book. (0:44:55)

Links From Today’s Episode:

Rob Copeland on LinkedIn — https://www.linkedin.com/in/real-rob-copeland/

Rob Copeland on X — https://twitter.com/realrobcopeland

The New York Times — https://www.nytimes.com/

The Fund — https://static.macmillan.com/static/smp/the-fund/

Bridgewater Associates — https://www.bridgewater.com/

Principles — https://www.amazon.com/Principles-Life-Work-Ray-Dalio/dp/1501124021

Doom: The Politics of Catastrophe — https://www.amazon.com/Doom-Politics-Catastrophe-Niall-Ferguson/dp/0593297377

The Dot Collector — https://www.principles.com/principles/3290232e-6bca-4585-a4f6-66874aefce30/

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://twitter.com/RationalRemind

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

Rational Reminder Email — [email protected]Benjamin Felix — https://www.pwlcapital.com/author/benjamin-felix/ 

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

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

Cameron Passmore — https://www.pwlcapital.com/profile/cameron-passmore/

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

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

Are you ready for a deep dive into quantitative investing, the private credit trend, and the Canada Pension Plan (CPP)? Then this episode is for you! Joining us today is Robin Wigglesworth, The Financial Times’ global finance correspondent, and author of Trillions: How a Band of Wall Street Renegades Invented the Index Fund and Changed Finance Forever, a groundbreaking book about the past, present, and future of passive investing. We talk with Robin about quantitative investing and the ideas he lays out in his article ‘A Quant Winter’s Tale’, before hearing his insights on the private credit trend and his intriguing new book titled Bonds, all about the history of the bond market. Today’s episode also features our Mark to Market segment, where Mark McGrath joins us to talk about the Canada Pension Plan (CPP), providing a comprehensive overview of its inner workings, his response to the criticisms levelled against it, and why he believes it’s of huge benefit to a great many Canadians. Next, we take a look back at our conversation with Alexandra Macqueen on annuities before sharing our thoughts on its relevance to today’s discussion and why it’s worth revisiting. Be sure to stay tuned for our after-show segment where we share our book, blog, and viewing recommendations, plus our favourite reviews, followed by a sneak peek of some of the exciting guests we have coming up. Press play now for a deep dive into quant investing, the hype around private credit, saving for retirement, and a whole lot more!

Key Points From This Episode:

• An introduction to today’s guest, Robin Wigglesworth, followed by his breakdown of quantitative investing. (0:04:05)
• Theories on what happened to factor investing between 2018 and 2020; what is meant by the quant winter and why we are now in a quant summer. (0:09:59)
• How investor sentiment regarding factor investing changed after the quant winter and how the algorithm aversion phenomenon impacted it. (0:15:13)
• The collapse of value; the impact of the COVID-19 pandemic (plus its role in the quant winter), and where we are right now. (0:20:14)
• An overview of quant investing products, and why many of them are too expensive. (0:23:24)
• Breaking down the noisy-ness in factor data and Robin’s predictions for where factor investing will go from here. (0:25:51)
• Unpacking the hype around private credit: indications that it’s in a bubble, how it could impact broader trends, and who stands to benefit most.  (0:36:36)
• We hear about the fascinating book that Robin is currently working on about the history of the bond market. (0:40:22)
• Our Mark to Market segment on the complicated (and divisive) Canada Pension Plan (CPP); how it works, its profound benefits, and responding to the criticism it has received. (0:41:50)
• A look back at our conversation with Alexandra Macqueen on annuities and how it links in with today’s discussion. (01:01:31)
• Our after-show section: an update on the Money Scope Podcast, reading recommendations, reviews from our listeners, and some of the incredible guests we have coming up! (01:04:33)

Links From Today’s Episode:

Robin Wigglesworth — https://robinwigglesworth.com/

Robin Wigglesworth on LinkedIn — https://www.linkedin.com/in/robin-wigglesworth-17101722

Financial Times — https://www.ft.com/

Trillions: How a Band of Wall Street Renegades Invented the Index Fund and Changed Finance Forever — https://www.amazon.com/Trillions-Renegades-Invented-Changed-Finance/dp/0593087682

‘Quant Winter's Tale’ — https://www.ft.com/content/e0f98278-432e-4ece-b170-2c40e40d2835

Episode 184: Robin Wigglesworth — https://rationalreminder.ca/podcast/184

Episode 93: Cliff Asness from AQR — https://rationalreminder.ca/podcast/93

Cliff Asness — https://www.aqr.com/About-Us/OurFirm/Cliff-Asness-Bio

AQR — https://www.aqr.com/

Two Sigma — https://www.twosigma.com/

D.E Shaw — https://www.deshaw.com/

CPP Investments — https://www.cppinvestments.com/

StatsCan — https://www.statcan.gc.ca/en/start

Financial Planning for Canadian Business Owners Episode 116: True Cost of CPP with Aravind Sithamparapillai — https://jasonpereira.ca/all-content-jason-pereira-toronto/true-cost-of-cpp-with-aravind-sithamparapillai-e116

Episode 59: Alexandra Macqueen — https://rationalreminder.ca/podcast/59

Pensionize Your Nest Egg — https://www.amazon.com/Pensionize-Your-Nest-Egg-Allocation/dp/1119025257 Griselda Blanco — https://www.imdb.com/title/tt15837600/

Cocaine Cowboys — https://www.imdb.com/title/tt0380268/

Queen of the South — https://www.imdb.com/title/tt1064899/

Fortune's Children: The Fall of the House of Vanderbilt — https://www.amazon.com/Fortunes-Children-Fall-House-Vanderbilt/dp/0062224069

Farnam Street — https://fs.blog/

24 in 24 Reading Challenge — https://rationalreminder.ca/24in24

The Money Scope Podcast — https://moneyscope.ca/

The Money Scope Podcast on YouTube — https://www.youtube.com/@moneyscopepod

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://twitter.com/RationalRemind

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

Rational Reminder Email — [email protected] Benjamin Felix — https://www.pwlcapital.com/author/benjamin-felix/ 

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

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

Cameron Passmore — https://www.pwlcapital.com/profile/cameron-passmore/

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

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

Mark McGrath on LinkedIn — https://www.linkedin.com/in/markmcgrathcfp/

Mark McGrath on X — https://twitter.com/MarkMcGrathCFP

In this episode, we are joined, for the third time, by renowned author and commentator Morgan Housel. Many of you are familiar with Morgan's bestseller, The Psychology of Money, and he is back to discuss his latest book, Same as Ever: A Guide to What Never Changes. He is also the partner at The Collaboration Fund, a network of fund managers investing across asset classes while identifying and supporting companies at the intersection of for-profit and for-good. In our conversation, we delve into the timeless principles that shape our perspectives of the world and why things are the Same as Ever. We discuss the importance of holding cash, challenging traditional analytical approaches and encouraging a broader reflection on life beyond numbers. Discover the recurrent nature of once-in-a-lifetime events, the pitfalls associated with the insatiable desire for certainty, the value and power of storytelling, and the complex interplay between incentives and expectations. Gain insights into the value of forecasting behaviours instead of market dynamics, why pessimism is more common and more captivating than optimism, embracing slight inefficiencies on the path to success, and much more! Don't miss this engaging discussion with a master storyteller and gain new perspectives on finance, human behaviour, and the principles that remain the Same as Ever with Morgan Housel. Tune in now!

Key Points From This Episode:

(0:03:28) Why it is important to understand the aspects that never change, with examples. 

(0:05:58) Morgan explains the value of random and seemingly inconsequential events.

(0:07:43) Discover the most persistent characteristic of risk and the ways expectations impact behaviour and decision-making. 

(0:13:04) How he has been dealing with the success of his book, Psychology of Money. 

(0:15:11) What makes once-in-a-lifetime events more common than expected and the problems that a desire for certainty brings with it. 

(0:19:16) Leveraging storytelling to understand the world and how to filter out the good information from the bad information. 

(0:25:41) Explore the role of incentives in influencing expectations and how calm can turn into crazy. 

(0:31:06) Learn how success can develop into failure and the problems that stem from investors trying to squeeze too much too soon from their investments. 

(0:37:13) Advice for understanding the normal ‘growth rate’ and what motivates innovation. 

(0:42:29) Balancing stress and adversity and why being slightly inefficient is a good thing. 

(0:46:46) Navigating hassle and nonsense on the path to success. 

(0:48:30) The time scale differences in materializing good news and bad news. 

(0:50:31) Strategies for combining optimism and pessimism to make informed and effective long-term decisions. 

(0:53:03) Examine the challenges of predicting the impact of future innovations. 

(0:55:43) The tendency for people to perceive others or businesses as better. 

(0:58:38) Hear about the difference between permanent and expiring information. 

(1:00:36) Reasons why complexity and length are appealing and how personal experiences shape perspectives. 

(1:05:00) Morgan shares the biggest takeaways from his books. 

Links From Today’s Episode:

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://twitter.com/RationalRemind

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

Rational Reminder Email — [email protected] Benjamin Felix — https://www.pwlcapital.com/author/benjamin-felix/ 

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

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

Cameron Passmore — https://www.pwlcapital.com/profile/cameron-passmore/

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

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

Morgan Housel — https://www.morganhousel.com/

Morgan Housel on LinkedIn— https://www.linkedin.com/in/morgan-housel-5b473821/

Morgan Housel on X — https://twitter.com/morganhousel

Morgan Housel on Instagram — https://www.instagram.com/morganhousel/

The Morgan Housel Podcast — https://podcasts.apple.com/us/podcast/the-morgan-housel-podcast/id1675310669

Collaborative Fund — https://collabfund.com/

Collab Blog — https://collabfund.com/blog/

Episode 128: Morgan Housel — https://rationalreminder.ca/podcast/128

Episode 191: Emerging Markets — https://rationalreminder.ca/podcast/191

Episode 224: Scott Cederburg — https://rationalreminder.ca/podcast/224

Books From Today’s Episode:

Sapiens — https://www.amazon.com/Sapiens-Humankind-Yuval-Noah-Harari/dp/0062316095

Seinfeldia — https://www.amazon.com/Seinfeldia-About-Nothing-Changed-Everything/dp/1476756112

The Snowball — https://www.amazon.com/Snowball-Warren-Buffett-Business-Life/dp/0553384619

Same as Ever — https://www.amazon.com/Same-Ever-Guide-Never-Changes/dp/0593332709

The Psychology of Money — https://www.amazon.com/Psychology-Money-Timeless-lessons-happiness/dp/0857197681