We Don’t All Live Forever

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Hi Michael,

Love the podcast. Just started listening going back into the archives and have found it very enlightening. I have a question with regards to a comment you made in this specific podcast (364) about shooting for average and who wants to be just average. You are speaking my language there!

What is your response to people when they say they got rich because of investing in a diversified index portfolio instead of getting rich by taking on more risk?

For example, authors of books like “Millionaire Teacher” by Andrew Hallam or even the Coffeehouse books that claim to do really well by just buying index funds and riding the market returns instead of taking on more risk shooting for higher returns.

When people challenge me on the index fund thing saying it is the only way, my response is that the authors of these books got rich (define rich right!) because they ended up saving so much of their income as opposed to gaining their wealth through market returns. Both books (more so Hallam’s) talk about being frugal and then investing. I would love to hear how you answer this question!

If you don’t have time to answer, I totally understand and will still continue to be a loyal listener…

[Name]

Just buy and hold?

But the Nasdaq was underwater for 15 years?

The Nikkei is down 50% still since 1989.

We don’t all live forever.

You might like my 2017 epic release: Trend Following: How to Make a Fortune in Bull, Bear and Black Swan Markets (Fifth Edition). Revised and extended with twice as much content. Out April 24th 2017.