295- Luck vs. Skill in Investing with Jake Taylor

InvestED: The Rule #1 Investing Podcast

Phil Town & Danielle Town

Business, Investing

4.6 • 1.6K Ratings

🗓️ 15 December 2020

⏱️ 37 minutes

🔗️ Recording | iTunes | RSS

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Summary

Investing in the stock market does not involve luck or gambling. It requires a strategy and a solid foundation of knowledge. Investing in anything, especially the stock market, when you don’t have a concrete strategy can be scary. It’s a serious journey that shapes your life and can determine whether or not you live a life free from financial burden. For example, if you don’t have a solid amount of money to retire on in 20 or 30 years from now, the government may not have the funds available to support your lifestyle, which is scary. That is why it is becoming increasingly important to learn how to invest for yourself. In reality, the only fear of investing you should have is the fear of what you will miss out on if you don’t invest. You wouldn’t jump in the ring without knowing the basics of boxing, so you shouldn’t jump into the stock market without knowing the basics of investing. Before you begin building wealth, it’s important to understand your long-term goals of investing as well as the basic process that you will use to reach those goals. But once you learn the basics, you must constantly stay up-to-date with trends and market updates. The most successful investors in the world are reading and educating themselves on a daily basis. In today’s podcast, Jake Taylor—Chief Executive Officer of Farnam Street Investments—sits down with Danielle to discuss luck vs. skill in investing, and why it’s important to stay in a growth mindset. Learn how to invest and make decisions with confidence with the Rule #1 Cheat Sheet for Smarter Investing. Click here to download: https://bit.ly/3gNe0ub Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	Hey everybody welcome to the invested podcast I'm Danielle town and I'm lucky to be
0:10.5	joined again today by the investor and author Jake Taylor. If you missed the
0:17.4	first half of our interview, go back and listen to the one from last week because
0:21.2	it introduces all of the stuff that we're about to talk about.
0:24.4	Jake Taylor is the CEO of Farnam Street Investments.
0:27.6	He's the host of the popular show, Value After Hours.
0:31.6	He's also the host of a series called Five Good Questions, which is a
0:34.9	great author interview series. He is also an author himself.
0:40.4	Too many alsos. So many also.
0:43.0	So many also.
0:44.0	But that's how things work in life.
0:46.0	He wrote the Rebel Allocator, which is a fantastic book.
0:49.0	We've talked about it a ton on this podcast.
0:52.0	If you haven't read it yet go read it and he lives in
0:55.4	fulsome California Jake thanks for coming back on thanks for having me back
1:00.9	Daniel so we are just to jump right into it and what we're talking about here is your paradigm of investment hygiene which is another way of thinking about investing practice,
1:14.1	investing process, how we as investors can set up
1:19.5	our space, our environment, ourselves to make better investing decisions every time really, right?
1:29.2	That's right. I think that's a you just hit on a really key point is that having a repeatable process is hugely
1:35.9	important. One just because it's most likely to produce good results but two like any good scientific study, you need to have controlled in the environment, right?
1:47.8	Control variables and test like, you know, one thing at a time.
1:51.6	Otherwise you don't know why something changed or not.
	...

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