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
The Joe Biden Capital Gains Tax Proposal
The Case for Replacing Bonds with Annuities
The Bernie Sanders Estate Tax Plan
The Scourge of Modern Monetary Theory
The Latest on Joe Biden's Tax Plan
Busting the Annuity Myths: My Interview with Tom Hegna (Part 2)
Busting the Annuity Myths: My Interview with Tom Hegna (Part 1)
How to Protect Yourself from Our Country's Fiscal Challenges: My Interview with Van Mueller (Part 2)
How to Protect Yourself from Our Country's Fiscal Challenges: My Interview with Van Mueller (Part 1)
"From Forever Taxed to Never Taxed": My Interview with Ed Slott (Part 2)
"From Forever Taxed to Never Taxed": My Interview with Ed Slott (Part 1)
An 8-Year Extension on Middle Class Tax Cuts?
Financial Planning Changes and Updates for 2021
Changes to Section 7702 -- An LIRP Christmas Miracle
My Interview with Former US Comptroller General David Walker (Part 2)
My Interview with Former US Comptroller General David Walker (Part 1)
How to Maximize Your Net Worth When Doing Roth Conversions & More
My Take On Financial Gurus, Tax Fear Mongering, Tax Payment Procrastination, and More
A Power of Zero Amazon Review Rebutted
Will America Be a Super Power in 2040, My Review of David Walker's New Book (Part 2)
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