Lessons from a Legend

Talking Real Money - Investing Talk

Don McDonald

Business, Education, Investing, How To

4.2 • 680 Ratings

🗓️ 6 May 2025

⏱️ 43 minutes

🔗️ Recording | iTunes | RSS

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Summary

Tom Cock takes the mic solo (with Don recovering from a “procedure”) and brings in advisor Roxy Butner for a special live episode. They reflect on Warren Buffett’s decision to retire in 2025, discussing lessons from his value investing strategy and massive cash holdings. Listener questions roll in on topics like compound interest assumptions, the risks of holding company stock, ETF mechanics, and how best to diversify for retirement. They also recommend the YouTube documentary Tune Out the Noise, tackle behavioral finance biases, and offer free portfolio reviews—including Tom’s upcoming in-person trip to Oregon. 0:05 Tom hosts solo, Don out recovering, show call-in number shared0:53 Warren Buffett announces 2025 retirement; lessons from his investing style2:49 Value investing, risk tolerance, and why most portfolios ignore value stocks5:05 Buffett’s ultimate advice: low-cost index funds, tune out the noise7:09 Guest Roxy Butner joins the live show for the first time7:28 Listener Q: YouTube doc Tune Out the Noise and Dimensional Fund Advisors8:44 Listener Q: Using 7% return assumptions—how conservative is that?10:53 Monte Carlo simulations vs. flat-rate assumptions in planning12:32 Saving percentages, lifestyle choices, and setting early-retirement goals14:04 You can't count on future returns—only saving and diversification15:22 Company stock danger: bias, volatility, and concentrated risk17:51 Behavioral finance: home bias and overconfidence in familiar firms20:32 Listener Q from Orlando: DFIV vs. VEU, building a smart ETF mix23:30 Discussing stock/bond ratios, fund tilts, and tax efficiency25:34 Roxy’s advice: multiple funds offer tax flexibility in taxable accounts27:16 Listener Q from Ottawa: Do ETF trades affect prices of underlying stocks?29:59 ETF structure explained, flash crash risk, and long-term thinking34:17 Listener wants a Talking Real Money nickname—challenge accepted34:44 ETF vs. mutual funds in taxable vs. retirement accounts36:19 Free portfolio reviews and Tom's May 21 visit to Lake Oswego38:29 Roxy's biggest mistake she sees: U.S. large-cap overconcentration Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	reality radio for a really great future we're talking real money hey welcome to talking real
0:12.9	money i'm tom cock don macdonald has the day off he had a little how do we say this
0:17.8	procedure yesterday he can tell you more if he wants but he is not available
0:22.9	i'm here i have a guest with me and just talk about to talk to in just a couple minutes but
0:27.0	you're out there trying to figure out what to do with your money our job is to help make that
0:31.3	easier less stressful and kind of put money in his place so here's how this this all works. This is a live call-in radio program.
0:40.5	Yeah, one of those, actually where you can talk to the host.
0:44.0	And in this case, we'll have another host in just a moment.
0:46.5	But here's the way that works.
0:48.3	Here's the phone number.
0:49.1	855-935-8-25-8-55-9-35-8-25-5. I think it's 935-825-8-5-8-5-9-35-9-35-8-25-5. I think it's 9-35-tok.
0:59.1	So we've got some topics. We've got some questions, but you always go to the top.
1:04.4	So call us, ask us your questions. Anything money-related.
1:07.9	Yeah, we spend more time on investing. And today it turned out, surprisingly,
1:13.3	shockingly, that the bigger news day than we had expected because Warren Buffett, who's viewed
1:18.7	by many as the greatest investor, certainly of the last 60 years, has decided to hang up his
1:26.8	adding machine, I guess, his trading tape at the end of
1:31.2	2025 and hand over Berkshire Hathaway to a guy named Greg Abel. What all that will mean to
1:37.8	Berkshire Hathaway is up in the air. But I think there's some lessons we could all learn from
1:42.5	Warren's outstanding efforts at running Berkshire Hathaway, which, wow, I mean, the returns, yeah, he's bested the S&P 500 by a wide margin.
1:54.4	And it's not a fair comparison, by the way, because the S&P 500 is 500, basically, of the largest U.S. stocks.
2:01.7	Warren has been a what we call a value investor, buying companies that are out of favor
	...

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