The Boring Asset That Outperforms Most Stocks

Stansberry Investor Hour

Stansberry Research

America, How, To, Crash, Money, Learn, Stansberry, Income, Research, Debt, Stocks, Porter, Business, Realestate, Banking, Investment, American, Investing, Invest, Howtosave, Sjuggerud, Ferris, Eifrig, Jubilee, Buck, Sexton, Market, Bonds, Churchouse, Savings, Options, Lashmet

4.4 • 677 Ratings

🗓️ 3 February 2025

⏱️ 64 minutes

🔗️ Recording | iTunes | RSS

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Summary

On this week's Stansberry Investor Hour, Dan and Corey welcome Hendrik Bessembinder to the show. Hendrik is a business professor at Arizona State University. With more than 40 years of teaching experience and 25 years of consulting experience, he joins the show to impart some of what he has discovered over his decades of work.

Hendrik kicks things off by introducing himself and sharing how he got involved in teaching. After that, he talks about his breakthrough research studying the performance of stocks versus Treasury bills, why investing over a long time horizon is crucial, and the importance of finding a competitive advantage in the markets. Hendrik then compares stock picking with professional athletics, as both are rare skills that only small portions of the population excel at. (1:47)

Next, Hendrik reveals that he's skeptical of any system that alleges it can make you wealthy, because the markets are competitive and constantly evolving. He says it all comes down to probabilities – and trying to gain an advantage that will nudge those probabilities in your favor. Hendrik also explains why he believes now is "the best trading environment ever" for retail investors in terms of cost and reliability. And he gives his thoughts on passive investing, the Magnificent Seven stocks, and diversification. (22:44)

Finally, Hendrik discusses which assets he personally has in his portfolio, his concerns about inflation, the benefits of Treasury inflation-protected securities ("TIPS"), and the downfall of meme stocks. Plus, he responds to popular criticism about the value of a Master of Business Administration degree. (40:51)

Transcript

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0:00.0	Hello and welcome to the Stansberry Investor Hour. I'm Dan Farris. I'm the editor of Extreme Value and the Ferris Report, both published by Stansberry Research.
0:08.9	And I'm Corey McLaughlin, editor of the Stansberry Daily Digest. Today we talk with Arizona State Professor Hendrik Bessimbinder.
0:16.6	We will talk with him about a very particular paper of his that has been very successful.
0:21.9	It's been downloaded and read and cited many, many times over the years.
0:27.2	We'll also talk about other areas that he has focused on in his many-decade academic career.
0:33.9	So let's do it right now.
0:35.4	Let's talk with Hendrik Bessendinger right now.
0:45.4	For the last 25 years, Dan Ferris has predicted nearly every financial and political crisis in America,
0:51.7	including the collapse of Lehman Brothers in 2008 and the peak of the
0:55.0	Nasdaq in 2021. Now he has a new major announcement about a crisis that could soon threaten the
1:00.9	U.S. economy and can soon bankrupt millions of citizens. As he puts it, there is something happening
1:06.6	in this country, something much bigger than you may yet realize, and millions are about to be
1:11.2	blindsided unless they take the right steps now. Find out what's coming and how to protect your
1:16.5	portfolio by going to www.com and sign up for this free report. The last time the U.S. economy
1:24.8	looked like this, stocks didn't move for 16 years, and many investors lost 80% of their wealth.
1:31.2	Learn the steps you can take right away to protect and potentially grow your holdings many times over at www.
1:37.1	American Darkday.com.
1:48.4	Hendrick, welcome to the show. Thanks so much for being here.
1:50.0	Thanks, Dan.
1:52.0	It's my pleasure.
1:54.0	Well, Corey and I have some questions about various things, some of your work that we've read over the years. But you're a new guest
2:02.4	to our, to our listeners. I am, yes. I was wondering if, you know, you couldn't give us a little
	...

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