At a recent Berkshire Hathaway annual shareholder meeting, Warren Buffett shared his thoughts on why he sees financial advisors as the worst people to trust with your money.
Buffett believes that financial professionals in aggregate can’t do better than the aggregate of the people who just sit tight.
David agrees with Buffett’s view on active versus passive investing.
According to David, Buffett’s point of view and approach don’t account for the high cost of investor behavior.
The fact that 90% of investment decisions are driven by emotions is a big problem David sees in Buffett’s line of thinking.
David sheds light on what has become known as the Prospect Theory.
What leads “DIY investors” to buy high and sell low, instead of buying low and selling high as logic would suggest? David shares his thoughts on the matter.
Adopting an index-based, Do-It-Yourself, motion-driven approach to investing will make you less likely to remain invested during extreme market volatility.
For David, one of the main purposes of a financial advisor is to hold your hand and keep you invested during jittery periods in the market.
Mentioned in this episode:
David's books: Power of Zero, Look Before You LIRP, The Volatility Shield, Tax-Free Income for Life and The Infinity Code
DavidMcKnight.com
DavidMcKnightBooks.com
PowerOfZero.com (free 3-part video series)
@mcknightandco on Twitter
@davidcmcknight on Instagram
David McKnight on YouTube
Get David's Tax-free Tool Kit at taxfreetoolkit.com
Warren Buffett
Berkshire Hathaway
Why Your LIRP MUST Have Interest in Arrears and Daily Sweeps
Can Long-Term Capital Gains Push You Into a Higher Tax Bracket for Roth Conversions?
Why Your LIRP MUST Have a Guaranteed 0% Loan Provision
Is Joe Manchin Coming Back to the Table on Build Back Better?
My Interview with Rebecca Walser, Author of Wealth Unbroken, Part 2
My Interview with Rebecca Walser, Author of Wealth Unbroken, Part 1
Joe Manchin Kills the BBB; What this Means for POZ Strategy
Why the National Debt Has Hamstrung the Fed and Legislative Update
Interview with Doug Orchard, Director of The Baby Boomer Dilemma
Is Inflation Here to Stay?
What I Would Do If I Were President
My Upcoming Book, Legislative Update and Thoughts on Hyperinflation
Updated Tax Thresholds for 2022 AND Is the Biden Tax Plan Really Cost Neutral?
How to Access Your 401(k) Prior to 59 1/2 without Penalty
Can a Billionaire's Tax Save Joe Biden's Signature Legislation
The Importance of Multiple Streams of Tax-Free Income
Is Biden's Tax Plan Going Up in Smoke?
The Bi-Partisan Debt Extravaganza
The POZ Worldview: David McKnight versus Dr. Larry Kotlikoff
7 Takeaways from the Recent House Tax Bill
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