2861: Magic Beans by JL Collins on True Financial Success & Index Fund Investing

Optimal Finance Daily - Financial Independence and Money Advice

Optimal Living Daily LLC

Investing, Self-improvement, Education, Business

4.5 • 1.3K Ratings

🗓️ 10 September 2024

⏱️ 10 minutes

🔗️ Recording | iTunes | RSS

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Summary

Discover all of the podcasts in our network, search for specific episodes, get the Optimal Living Daily workbook, and learn more at: OLDPodcast.com. Episode 2861: JL Collins explores the allure of investing fads in "Magic Beans," highlighting the recurring trends of Growth Stocks, Actively Managed Funds, and Dividend Aristocrats. He argues that true financial success lies not in chasing these trends but in the reliable, long-term strategy of broad-based index funds. Read along with the original article(s) here: http://jlcollinsnh.com/2012/01/02/magic-beans/ Quotes to ponder: "For supposedly rational creatures we humans seem irrationally drawn to Magic Beans." "You know what Warren Buffet recommends for individual investors? Broad-based Index Funds." Episode references: The Intelligent Investor: https://www.amazon.com/Intelligent-Investor-Definitive-Value-Investing/dp/0060555661 Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	This is Optimal Finance Daily.
0:03.0	Magic Beans by J.L. Collins of J.L. Collins N.
0:08.0	And I'm your host and personal finance enthusiast Diana Merriam.
0:13.0	We're going to get right to today's post as we optimize your life.
0:17.0	Magic Beans by J.L.
0:22.8	by J.L. Collins.com
0:27.0	For supposedly rational creatures
0:31.0	we humans seem irrationally drawn to magic beans.
0:35.0	Being a geezer, I've been around long enough to see quite a few flavors come and go.
0:41.0	What they all have in common is that by the time you start
0:44.9	reading about them everywhere, the end is near. Let's see. I remember growth
0:51.6	stocks were all the rage a while back.
0:54.0	Why any management worth its salt should be able to plow profits back into the business
1:00.0	and reach even greater heights.
1:02.0	Value stocks that paid dividends? and reach even greater heights.
1:03.0	Value stocks that paid dividends?
1:05.8	Clearly run by management's with no vision.
1:09.0	So lacking an ability that they could think of nothing better to do with profits than to pay them out.
1:16.0	You want growth.
1:17.6	Find companies with forward thinking, what a wonderful phrase, leaders skilled in deploying capital. Growth stocks. You couldn't
1:26.7	go to a party without some guy telling you about his latest killing, left everything in the dust, until they didn't.
1:35.0	I remember actively managed funds.
	...

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