Learn How Random Investments Can Outperform Managed Funds

05/29/24 • 18 min

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Learn why randomly choosing individual stocks can beat expert investing strategies — and what that means for your portfolio.

Can random stock picks outperform Wall Street professionals? What kind of portfolio returns can low-cost index investing drive? Hosts Sean Pyles and Anna Helhoski delve into the astonishing results of a dart-throwing experiment by Wall Street Journal columnist Spencer Jakab and his team, which pitted random stock selections against high-profile hedge fund picks. The hosts explore this intriguing setup and its outcomes, offering actionable insights into the power of simple, low-cost index funds and ETFs over expensive investment managers. Their insights are intended to offer a better understanding of the practicality of low-cost index funds, the importance of maintaining a diversified portfolio, and the pitfalls of frequent market adjustments.

Then, Sean and Anna delve into the latest financial headlines, including findings from the Federal Reserve's Economic Well-Being of US Households report for 2023, April’s drop in home sales, and Google Flights adding Southwest Airlines fares to its search results.

In their conversation, the Nerds discuss: index funds, investment strategies, stock market, ETFs, dart-throwing experiment, investing tips, low-cost investing, financial wellbeing, active vs. passive investing, hedge funds, portfolio diversification, The Wall Street Journal, stock picks, investment success, random stock selection, economic well-being, smarter investing, outperforming the pros, investment managers, A Random Walk Down Wall Street by Burton Malkiel, stock listings, mutual funds, stock performance, financial journalists, retirement savings, financial stress, household income, emergency expenses, high mortgage rates, affordable housing, home sales, previously owned homes, Google Flights, Southwest Airlines, travel expenses, airfare comparison, financial education, money management, financial planning, investment portfolio, stock market analysis, market adjustments, investment risks, and diversification benefits.

To send the Nerds your money questions, call or text the Nerd hotline at 901-730-6373 or email [email protected].

Like what you hear? Please leave us a review and tell a friend.

Learn why randomly choosing individual stocks can beat expert investing strategies — and what that means for your portfolio.

To send the Nerds your money questions, call or text the Nerd hotline at 901-730-6373 or email [email protected].

Like what you hear? Please leave us a review and tell a friend.

Previous Episode

Cash Back vs. Points Deep Dive: Presenting All the Hacks with Chris Hutchins

Are credit card rewards points more valuable than cash back? This special presentation of All the Hacks with Chris Hutchins features deep dive into credit cards, with a focus on cash back versus points. Chris goes deep on strategies for every spending category and shares his analysis of how to optimize points vs. cash back for the best return on investment.

All the Hacks with Chris Hutchins is a podcast about optimizing all aspects of your life, from travel to money to health to work and more. Chris is a life hacker who has saved millions by breaking down every aspect of life. And on his show, he teaches you all the tactics, tricks and tips you need to upgrade your life, money, and even travel.

Get more financial ideas by listening to All the Hacks with Chris Hutchins wherever you get your podcasts.

Learn more about all the Hacks with Chris Hutchins: https://www.allthehacks.com/

Next Episode

The Intricacies of Interest: The Backbone of Mastering Your Finances

Author Jake Cousineau explains why it’s important to teach interest and budgeting to students — and how to learn as an adult.

How can you understand complex personal finance topics as an adult?

What strategies can young people use to achieve financial independence?

Personal Finance Nerd Kim Palmer talks to Jake Cousineau, author of How to Adult: Personal Finance in the Real World, about the significance of personal finance education and the intricacies of interest rates to help you understand the impact of financial decisions on your future. They begin with a discussion of the importance of teaching personal finance to high school students, with tips and tricks on budgeting, investing, and managing credit. Then, they discuss the impact of APR on loans, the long-term financial effects of interest rates on major purchases, the financial impact of having a good or bad credit score, and the transformative power of automated savings and index fund investments.

In their conversation, the Nerds discuss: personal finance, investing, budgeting, financial literacy, credit score, compound interest, index funds, retirement savings, student loans, APR, financial education, wealth building, financial independence, automated savings, money management, financial health, financial planning, loan repayment, interest rates, saving for the future, debt management, financial freedom, budgeting pitfalls, financial knowledge, credit management, financial wisdom, financial illiteracy, personal finance books, managing money, smart budgeting, housing costs, transportation costs, food budgeting, and financial confidence.

To send the Nerds your money questions, call or text the Nerd hotline at 901-730-6373 or email [email protected].

Like what you hear? Please leave us a review and tell a friend.