Apr 15, 2021
This episode is brought to you by Merk Research. Visit this link to take advantage of the offer presented on the podcast. To listen without ads or announcements, become a premium subscriber, which gets you access to a host of other benefits, including (but not limited to) the new Daily Contrarian podcast, released every market day morning by 7:00 a.m. eastern time.
Chris Belchamber joins the podcast to discuss his
book Invest Like The Best: The Low-Risk Road to High
Returns and challenge the axiom that market-beating
returns are not possible without taking on large amounts of
risk.
Belchamber has studied the most successful investors' track records
over decades. One thing they all have in common is prioritizing
risk aversion and behavioral discipline. There are simple lessons
to be learned for 'novice' investors.
(Spotify users can link to the segment directly by clicking on the timestamp)
- Most financial advisers have bought in to the idea that more risk will generate higher returns. This "simple line of argumentation is just wrong." (6:39);
- 'Paradox investing' and Radobank's model (10:57);
- The mindset of successful investors is all about risk aversion. The biggest problem facing investors is their own behavior (13:56);
- 'The optimization of the brain' function: what it is and how to go about it without getting exhausted (17:23);
- Background on the guest (23:05);
- Belchamber's meeting with John Meriwether (26:42);
- Jim Simons and Renaissance Technologies (28:52);
- Red flags and other things investors should look for (33:07);
- The current state of the economic and market cycle and why the second half of this year could be a lot different -- and worse (38:29).
- Website: ChrisBelchamber.com;
- Book via Amazon.com;
- Twitter: @ChrisCBIM.