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Masters in Business

At the Money: Lose the Noise

Masters in Business

Bloomberg

Business, Entrepreneurship, Investing

4.42.2K Ratings

🗓️ 5 June 2024

⏱️ 15 minutes

🧾️ Download transcript

Summary

A constant stream of noise distracts investors: earnings reports, news releases, upgrades, downgrades, economic data, geopolitics. How should we best manage this firehose of distractions? Larry Swedrow, head of financial and economic research at Buckingham Strategic Wealth, speaks with Barry Ritholtz about managing through the noise. His firm manages or advises on over 70 billion dollars in client assets. Swedrow has co-written 20 books on investing.

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Transcript

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0:00.0

What does the invention of paper money in Europe have to do with the future of

0:06.2

cryptocurrency? Stay tuned to this podcast to explore the connection.

0:21.0

Join global business leaders and investors at the Bloomberg Sustainable Business Summit returning to Singapore on July 31st.

0:24.0

Take part in solutions-driven discussions on how to drive business value and unlock opportunity

0:30.0

while remaining nimble in times of change and greater ESG accountability.

0:34.6

Learn more at Bloomberg Live.com slash sustainable biz Singapore.

0:39.0

That's Bloomberg Live.com slash sustainable biz Singapore. Your boys will get wild wild.

0:53.0

I'm Barry Rittal

1:01.0

I'm Barry Rittalts and on today's edition of At the Money we're going to discuss noise.

1:07.0

Not just any noise, but the kind of noise that distract investors.

1:12.0

Earnings reports, news releases, upgrades,

1:15.0

economic data, geopolitics, they can be a confusing swirl

1:21.0

for long-term investors. How best to manage this fire hose of distractions?

1:27.0

To help us unpack this and what it means for your portfolio,

1:30.4

let's bring in Larry Swedro. He's head of financial and economic research at Buckingham's strategic wealth.

1:36.4

The firm manages or advises on over $70 billion in client assets and Larry has written or co-written 20 books on investing.

1:46.0

So let's start with our first Masters in Business interview we did years ago. You kind of stunned me by saying all of those news

1:56.6

items are meaningless to long-term investors explain.

2:01.0

Barry the problem that investors fail to understand is that the market knows everything you know and the minute news comes out the market instantly adjusts to that new information

2:17.2

which is what is moving prices and by the time you react, it's already too late,

2:23.8

and you should therefore ignore the noise.

2:26.6

A great example of that is, let's say a company is trading at 60.

...

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