Passive Investing: Is Active Investing (finally) Dead? (SB1493)
The Stacking Benjamins Show
Joe Saul-Sehy and Josh ‘OG’ Bannerman, CFP
4.4 • 2K Ratings
🗓️ 22 March 2024
⏱️ 65 minutes
🧾️ Download transcript
Summary
Is the battle between index funds and actively managed funds finally over? Total assets invested in index funds and ETFs recently passed assets invested in active funds for the first time ever. But is going all index funds the right move for you? Joining us is CFP and President of Bona Fide Wealth, Douglas Boneparthe. Also joining us is Crystal Hammond, host of our sister show, Stacking Deeds. And finally joining us from his bunker deep under Los Angeles is the creator of the award-winning blog lenpenzo.com, Len Penzo.
We dive into the difference between active and passive funds, break down the history of each, and pontificate on where we think the investment world is heading. Plus, what are the risks of cap-weighted index funds?
In the second half of the show, sponsored by DepositAccounts.com, we dive into the industry secrets and their smoke-and-mirrors tricks.
Be sure to stick around for our ongoing year-long trivia competition. Doug brings us some diminutive French leader-themed trivia. You won't want to miss it!
FULL SHOW NOTES: https://www.stackingbenjamins.com/active-vs-passive-fund-debate-1493
Deeper dives with curated links, topics, and discussions are in our newsletter, The 201, available at https://www.StackingBenjamins.com/201
Enjoy!
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Transcript
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| 0:00.0 | Look. |
| 0:03.8 | This is hot, Ray. |
| 0:06.0 | Symmetrical book stacking, just like the Philadelphia Man's Tribulence of 1947. |
| 0:11.6 | You're right. No human being would stack books like this. |
| 0:15.2 | Listen. You smell something? |
| 0:23.1 | Live from Joe's mom's basement, it's the stacking Benjamin show. |
| 0:48.2 | I'm Joe's mom's neighbor, Doug, and today you'll learn why passive index funds have clearly won the investing game with the president of bona fide wealth, Doug Bonaparte. |
| 0:53.5 | Plus, it's the empress of the stacking universe, Crystal Hammond. |
| 0:58.5 | And finally, the star of last year's film Napoleon, it's Joaquit. |
| 1:03.4 | Oh, never mind. It's a different guy in a funny hat. It's just Len Penzo. |
| 1:08.7 | But that's not all halfway through the show. I'll share my short trivia question. |
| 1:14.5 | And now, a guy who's not afraid to invade your ears with a small but determined army, |
| 1:20.4 | it's the emperor of all things personal finance, Joe Saul Seahy. |
| 1:25.5 | Hey, everybody, and happy weekend. |
| 1:27.1 | We're so glad you're here. |
| 1:44.7 | Sit back, relax, put your feet up because we're about to have an hour of financial nerdery. Welcome to another episode of the Stacky Benjamin Show brought to you on Fridays by State Farm. State Farm agents are small business owners too so they know how to help you choose personalized policies and fit your needs. a good neighbor stay farm is there talk to your local agent today we're not just going to talk to our local |
| 1:50.2 | agent we're going to talk to the people at this roundtable because man do we have the uber nerds with us |
| 1:55.3 | today we're going to have some super fun but let's start off with my co-host on our sister show, the Stacchidicot, Crystal Hammond's here. How are you? Great. How are you? So is a nerdery, I'll raise you a strategery? Is that how we're going to outward each other today? Strategery and nerdery. I would love to. And then, Lynn, are you, is it cold in your house? You're making me hot. I think I need to turn on the fan. |
| 2:19.1 | Lynn makes everybody hot. That's true. It's California. And, you know, once the temperature dips below 65 here, it's freezing. It's ice age out here. So, wow. It's 64 right now. |
| 2:30.1 | Ice age. That's horrible. I feel, I feel so bad being from Michigan. 64. You must be. Oh, I can't imagine. And by the way, you had the squirrel cam. You sent us something from the squirrel cam a little bit bigger than average squirrel on your squirrel cam, Len. Yeah, well, it was squirrel cam after dark. So that was a possum. That's what I should. Although, Doug thought it was a grizzly bear, but you were close, Doug. Not quite. Well, based on where that camera was set up, that thing was huge. I was terrified. By the way, when you said squirrel cam after dark, it sounded like Len's only squirrel's account. Like he's got this other thing going on. You know, that's a good idea. That's a really good idea. I might want to have to consider that. |
| 3:11.3 | Yeah. Squirrel's gone wild. It's Len's next video. |
| 3:15.6 | Hey, real quick, you know, you're talking about Uber nerds. I did send out for my IQ test, |
... |
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