TIP788: Simple Investing w/ David Fagan

You're listening to TIP. In today's episode, I'm joined by my recurring guest and close friend, David Fagan, for a conversation about indexing, an uncomfortable truth most investors never hear. We talk about why indexing works for the vast majority of people and how missing just a few percentage points in annual returns can quietly cost you years of your life. We also discuss what investors should really look for with evaluating track records, benchmarks, and the value provided by financial advisors and sometimes the lack thereof. In this episode, as you'll also hear, we cover asset allocation rebalancing and what it really means to be the overseer of your investments, even when you trust someone else to manage them. And finally, the conversation goes beyond investing into expectations, behavior, and leadership. We discuss how simplicity and consistency compound over time, both in markets and in life. Since 2014 and through more than 190,000,000 downloads, we break down the principles of value investing and sit down with some of the world's best asset managers. We uncover potential opportunities in the market and explore the intersection between money, happiness, and the art of living a good life. This show is not investment advice. It's intended for informational and entertainment purposes only. All opinions expressed by hosts and guests are solely their own, and they may have investments in the securities discussed. Now for your host, Stig Brodersen. You're listening to The Investors Podcast. I'm your host, Stig Brodersen, and I am here today with my friend, David Fagan. David, how are you today? I'm doing great, Stig. Thank you very much for the invite. I'm really looking forward to this. Well, David, thank you for making time, and let's just jump right into the first topic here today. We're going to talk about why we should index. So with that very cold start, I'm just going to throw it over to you, David. No. That's lovely. Yeah. I I I wanted to talk about indexing and how I use that with our family's wealth and do a bit of a deep dive of the thinking behind it. I know many of the listeners come here for value investing, concentrated portfolios and understanding individual businesses, so this episode might not be directly for you, but it might be for someone that you're connected to. I've shared my indexing memo titled Compounding Simplicity with more than a few of our mastermind community members. And it's something that they've passed along to their friends, their family members, and anyone just starting out who needs a reliable framework to start building wealth. So today, I wanna encourage you to listen to see if this resonates with you or anyone that you're connected with, like a friend or family member, to set them up on a strategy that will teach them about the market, or the person who doesn't really wanna pick stocks at all and just wants a simple plan that works. You know, sometimes …