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How to Money

The Wild History of Index Funds with Robin Wigglesworth #595

How to Money

iHeartPodcasts

Business, Investing, Education

4.63.2K Ratings

🗓️ 21 November 2022

⏱️ 60 minutes

🧾️ Download transcript

Summary

If you’ve listened to the show for more than a couple episodes then you know that we’re big fans of index funds. Specifically, low-cost widely diversified index funds are what the vast majority of our portfolios consist of. But how did index funds come to be? And sure, we’re all for them but what does everyone else say? That’s why we’re pumped to take a deep dive into index funds today with Robin Wigglesworth who is editor of Alphaville over at the Financial Times. Robin is a financial journalist and he’s also the author of the book “Trillions: How a Band of Wall Street Renegades Invented the Index Fund and Changed Finance Forever.” Passive investing is something we take for granted- for us, index funds have always been an option but that wasn’t always the case. It was a heretical idea in the past, so we’re excited to get into the history of one of the most important modern-day investing innovations: who was responsible for their creation, why hedge funds still exist if index funds are the path to wealth, potential downsides to passive investing, & much more!

 

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During this episode we enjoyed a Kveik 1 Golden Sour Ale by Shades Brewing- thanks Andy for donating this one to the pod! And please help us to spread the word by letting friends and family know about How to Money! Hit the share button, subscribe if you’re not already a regular listener, and give us a quick review in Apple Podcasts or wherever you get your podcasts. Help us to change the conversation around personal finance and get more people doing smart things with their money!

 

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Transcript

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0:00.0

My name is Joshua Topolsky and I have a new podcast called What Future.

0:04.5

But I want to tell you that I'm being forced by my producer to record a promo telling you about my show.

0:10.1

And I'm not trying to force you to listen to it.

0:12.6

And maybe you're not interested in internet culture and the future of life on planet Earth.

0:18.1

And why John Carpenter movies are so good.

0:20.6

You may just want to listen to a podcast about, I don't know, sports or whatever Joe Rogan talks about.

0:26.6

And that's fine, you know, no judgment.

0:28.4

But if you like what you're hearing and I know that you do, you can listen to all of what future on the I Heart Radio app, Apple podcasts or wherever you get your podcasts.

0:58.4

The podcast and that's what you really missed brings you back to the choir room for a gloriously gleeky rewatch of all six masterfully musical seasons of Glee.

1:19.4

Join cast members Kevin MacKale and Jenna Uschkewitz for never before heard stories from the cast, crew, celebrities and you, the fans from McKinley High to New York City, from the choir room to nationals and from the Super Bowl to a world tour.

1:32.9

Listen to and that's what you really missed on the I Heart Radio app, Apple podcasts or wherever you get your podcasts.

1:40.4

Welcome to Hadamuni, I'm Joel and I am Matt.

1:43.4

And today we're talking the wild history of index funds with Robin Wigglesworth.

1:49.4

That's right, we're taking a deep dive into index funds today with Robin Wigglesworth, who is editor of Alphaville over at the Financial Times.

2:15.4

Robin is a financial journalist and he's also the author of the book Trillions, how a band of Wall Street renegades invented the index fund and changed finance forever.

2:25.4

And you know, passively investing the index funds is something we talk a lot about here on the show, but it's also something that we take for granted, right?

2:33.4

Like for us, it's always been an option, but that wasn't always the case.

2:37.4

It was a heretical idea in the past and so because of that we're excited to get into the history of one of the most important modern day investing innovations with our guest today, Robin Wigglesworth.

2:47.4

Robin, thank you for joining us today on the podcast.

2:50.4

Hi Joel, hi Matt. Thanks so much for having me on. It's been real pleasure.

2:53.4

Hey, we're glad to have you Robin excited to talk about your book and all the interesting things that index funds have done for us, but not just like what they do for us now, but how we got to this point.

3:03.4

But our first question for everybody who comes on the show is what's your craft beer equivalent and what we mean by that is that Matt and I we spend some would say and abnormal amounts on good craft beer.

...

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