Introduction
I watched the video the first time back in December 2018, one month after I started my personal finance research. I looked up my blog and found the blog related to Burton Malkiel, but I did not write any notes. I know at that time I did not know anything about investment and finance.
Second time to view
Here is the interview.
Legendary economist and financial thought leader, Burton Malkiel shares investment lessons learned more than four decades after writing his classic book, A Random Walk Down Wall Street. WEALTHTRACK #1403 broadcast on July 07, 2017.
2:20
Changes on the street since 1973
- Digital revolution
Quantitative models, algorithms & high frequency trading
- Tax-deferred investment accounts
1974 IRA created
1978 401 created
- ETFs
1993 First ETF created
SPDR S&P 500 ETF (SPY)
Shrinking stock population
Number of publicly traded stocks
46% decrease
1996 8,090
Professor of Economics, Emeritus
Princeton University
Burton Malkiel
1973 random walk in wall street
1976 - index fund introduced by Vanguard - not so successful, very slow to take it off
My notes taken:
home country bias - USA 30% whole world
broad-baesd index - emerging
total market index
cash flow
fundamental index - smart beta
Case talk: 15% bank of America, citigroup,
goverment bail out / goodbye
expensive/ value weighting
zero - tax-efficient
think thing after tax 20% - 30% short term ( capital gain tax)
human factor
sell-off
sharp market sell-off
not stock picking - diversification
biggest judgement
finance repression
ten-year treasury 2.1% - zero rate of return
bond component
bond investment
preferred stock
stock substitute
risk-reward ration - stock vs. bond
the preferred stock is safe compared to stock
5-% foreign bonds
United states total market bond - VT - recommended to purchase
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