Charles D. Ellis: The Loser's Game | Rational Reminder 244

When it comes to the world of investing, there are many options available to consumers. The range of financial products available can be overwhelming and confusing. Additionally, investing is not only about the rate of return but also about what you are investing for and why. To help us unpack this complicated subject is Charles Ellis, a highly respected investment consultant and founder of Greenwich Associates, a strategy firm focused on financial institutions. He is also a famous author and has written several books on the topic of finance and investment, such as Winning the Loser's Game which provides readers with insights into making the best financial decisions in an increasingly unpredictable market. In our conversation, we discuss why indexing is the better investment option, how the investment space has changed over time, tailoring your investment decisions to suit your needs and desires, and why looking at the bigger financial picture is essential. We also delve into why investors can be their own worst enemies, what advisors and investors should avoid, the theme of his book Inside Vanguard, various investment strategies, and much more. Tune in and hear insights on indexing, wise investing, and how to win the ultimate game from industry legend Charles Ellis!

Timestamps:
0:00 Intro
4:18 Charley defines a "Loser's Game"
8:21 Why money management is a loser's game
11:38 How the market has changed since writing about the loser's game
19:09 Whether or not the sentiment toward active management is negative
22:03 Types of investor who should not invest in low-cost index funds
30:27 What investors and their advisors should be focused on
37:25 The importance of a well-defined investment policy statement
39:01 What investors can do to protect themselves from themselves
40:43 The most under-appreciated action investors can take to be more successful
50:16 Charley's opinion on Vanguard's entry into private equity
55:27 Where Charley sees the biggest future opportunities in the field of investment
1:00:15 What has made Vanguard successful as a company
1:08:14 What Charley has learned about personal motivation and productivity
1:12:04 Charley defines success in his life
1:14:12 Outtake

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Books From Today’s Episode:
Winning the Loser's Game: Timeless Strategies for Successful Investing — https://amzn.to/3FrNKmt
Inside Vanguard — https://amzn.to/3TlwrcG
What It Takes: Seven Secrets of Success from the World's Greatest Professional Firms — https://amzn.to/3Thgm7z
Capital: The Story of Long-Term Investment Excellence — https://amzn.to/3FpiHb5
Figuring It Out: Sixty Years of Answering Investors' Most Important Questions — https://amzn.to/3LknZZ8

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