E115: Is the 60/40 Portfolio Outdated? w/James Langer

James Langer, Chief Executive Officer and Chief Investment Officer at Redmont Wealth Advisors sits down with David Weisburd to discuss how Reason small cap stocks are crushing large caps, the academic approach to outperforming with small cap strategies, and the history of top stocks since 1926. (0:00) Historical performance of small cap value vs. large cap growth (0:46) Why the strategy isn't widely adopted and introduction of James Langer (2:11) Explanation of Fama and French's three factor model and its practical impact on returns (4:29) Small cap value performance in various market conditions (6:06) Intuition behind small cap value outperformance and practical investment advice (10:19) Benefits of equally weighted index and active strategy in small cap value investing (14:23) Redmond's investment strategy and ideal portfolio profile (18:06) Indexing vs. active management for large stocks and Redmond's approach (24:13) Activist investing, governance, and the role of fees and asset allocation (27:07) Analysis of David's public portfolio and Redmond Wealth Advisors' tools (28:45) Dedication to Ken French (29:41) Closing remarks and sponsorship information