Who Cares About Alpha Anyway? Winning Without Picking Winners With Larry Swedroe

Let's Talk ETFs

Larry Swedroe has established himself as a voice of financial reason and one of the world's foremost proponents of evidence-based investing over nearly five decades managing money. His recently updated and expanded best-seller, The Incredible Shrinking Alpha: How to be a successful investor without picking winners, is a well-timed continuation of the argument he's been making for decades: Investors need not do anything spectacular to succeed. Rather than search for alpha, that ever-elusive holy grail of investing, investors are better off seeking beta, creating risk-adjusted return streams that offer the best chance at reaching their goals.
Show Notes
3:30 - What would you say to investors who think the high volatility of February and March is behind us?
7:45 - Where has all the alpha gone?
11:00 - Other reasons alpha is harder and harder to find
14:30 - An increasingly tough competitive environment
21:30 - What about Warren Buffett? Confusing beta for alpha
31:30 - Alpha vs. beta: More than semantics?
34:30 - What do Larry mean by "passive management"?
42:00 - Price discovery impeded: Is there such a thing as too much index investing?
55:00 - Why do so many investors continue to put their money into more expensive actively-managed strategies, despite the lack of evidence of persistent outperformance?
61:00 - Practical portfolio construction: How do you narrow down the vast universe of available passively managed funds?
78:30 - How important is it to stick with a single fund family across an entire portfolio?
83:30 - Recommendations regarding rebalancing and taxes?
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