The Long Term Investor - Charley Ellis on Why Most Investors Fail (And What to Do Instead) (EP.191)

Charley Ellis on Why Most Investors Fail (And What to Do Instead) (EP.191)

02/12/25 • 34 min

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Why do so many investors underperform the market? Legendary investor and author Charley Ellis explains why investing has become a “loser’s game” and what smart investors do instead.

Listen now and learn:

► Why active investing used to work—but no longer does

► How professional traders dominate the market, making it nearly impossible to outperform

► The biggest behavioral mistakes that cost investors money

► What individual investors can learn from institutional strategies (and what they should avoid)

Charley Ellis has spent decades advising institutional investors and writing some of the most influential books on investing, including Winning the Loser’s Game and Rethinking Investing. His insights will change the way you think about investing and help you build wealth more effectively.

🔹 Subscribe now for more expert insights on long-term investing strategies!

(02:30) Why Most Investors Lose the Investing Game

(04:45) The Evolution of Investing: Why Active Management No Longer Works

(12:30) Why Most Prices Are (Almost) Always Right–And Why That Matters

(17:50)The Smartest Investors Play a Different Game

(22:15) Why Index Investing Is the Best Bet for Long-Term Wealth

(27:30) Why Yale’s Investing Model Won’t Work For You

(31:45) The Biggest Mistakes Investors Make

(38:15) The Best Investment Strategy? The One You Stick With

Visit www.TheLongTermInvestor.com for show notes, free resources, and a place to submit questions.

You don’t have time to sift through endless financial content. That’s why I do it for you. Get my top 5 must-read articles every week in a quick, easy-to-digest email. Sign up for my newsletter.

-----

Why do so many investors underperform the market? Legendary investor and author Charley Ellis explains why investing has become a “loser’s game” and what smart investors do instead.

Listen now and learn:

► Why active investing used to work—but no longer does

► How professional traders dominate the market, making it nearly impossible to outperform

► The biggest behavioral mistakes that cost investors money

► What individual investors can learn from institutional strategies (and what they should avoid)

🔹 Subscribe now for more expert insights on long-term investing strategies!

(02:30) Why Most Investors Lose the Investing Game

(04:45) The Evolution of Investing: Why Active Management No Longer Works

(12:30) Why Most Prices Are (Almost) Always Right–And Why That Matters

(17:50)The Smartest Investors Play a Different Game

(22:15) Why Index Investing Is the Best Bet for Long-Term Wealth

(27:30) Why Yale’s Investing Model Won’t Work For You

(31:45) The Biggest Mistakes Investors Make

(38:15) The Best Investment Strategy? The One You Stick With

Visit www.TheLongTermInvestor.com for show notes, free resources, and a place to submit questions.

Previous Episode

The Hidden Risks of U.S. Stocks and Why Global Diversification Still Matters (EP.190)

Want to see what you may be overlooking in your finances? Discover your biggest opportunities in just 15 questions with my Financial Assessment.

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The U.S. stock market has been on an incredible run for over a decade, leaving many investors wondering: Why bother diversifying when the S&P 500 keeps winning?

But history tells us that no market outperforms forever. In this episode, Peter Lazaroff explores the hidden risks of relying too heavily on U.S. stocks and why global diversification still plays a crucial role in long-term investing success.

Listen now and learn:

► The historical cycles of U.S. stock dominance—and what happened when the tides turned

► Why valuation gaps between U.S. and international markets create new opportunities

► The psychological challenge of sticking to diversification when it feels like U.S. stocks can do no wrong

► How a globally diversified portfolio helps manage risk and minimize regret

🎧 Tune in now!

Visit www.TheLongTermInvestor.com for show notes, free resources, and a place to submit questions.

Next Episode

2025 Market Forecasts, Interest Rates, and Economic Risks With Dr. David Kelly (EP.192)

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What’s ahead for markets in 2025?

In this episode, I’m joined by Dr. David Kelly, Chief Global Strategist at J.P. Morgan Asset Management, to break down key economic and market trends shaping the year ahead.

Listen now and learn:

► How economic forecasts are built—and how investors should use them

► The outlook for GDP growth, inflation, and interest rates in 2025

► The impact of policy changes, including tax cuts, tariffs, and fiscal stimulus

► Why global diversification matters more than ever

► The role of AI in the economy and what it means for investors

Dr. Kelly’s insights cut through the noise and focus on what really matters for long-term investors. Don’t miss this deep dive into the forces driving markets in 2025!

Visit www.TheLongTermInvestor.com for show notes, free resources, and a place to submit questions.

(02:15) How Economic Forecasts Are Built (05:30) The U.S. Economic Outlook for 2025 (06:45) Policy Changes That Could Shape 2025 (12:30) Why Interest Rates Are Rising (16:30) The National Debt: Should Investors Worry? (23:15) Market Concentration and the “Magnificent Seven” Stocks (26:00) Why U.S. Investors Should Diversify Globally (31:00) The Potential and Risks of AI (32:33) Final Thoughts and Where to Follow Dr. David Kelly

Visit www.TheLongTermInvestor.com for show notes, free resources, and a place to submit questions.