My Worst Investment Ever Podcast Andrew Stotz

In this episode of Investment Strategy Made Simple (ISMS), Andrew gets into part two of his discussion with Larry Swedroe: Ignorance is Bliss. Today, they discuss two chapters of Larry’s book Investment Mistakes Even Smart Investors Make and How to Avoid Them. In this fourteenth series, they discuss mistake number 26: Do You Fail to Compare Your Funds to Proper Benchmarks? And mistake 27: Do You Focus On Pretax Returns?
LEARNING: Always run a regression analysis against an asset pricing model on portfoliovisualizer.com. Actively managed funds have higher tax expenses than ETFs and mutual funds.
 
“If you want to see if an active manager is truly outperforming and their appropriate risk-adjusted benchmark, run a regression analysis against an asset pricing model on portfoliovisualizer.com.”Larry Swedroe 
In this episode of Investment Strategy Made Simple (ISMS), Andrew gets into part two of his discussion with Larry Swedroe: Ignorance is Bliss. Larry is the head of financial and economic research at Buckingham Wealth Partners. You can learn more about Larry’s Worst Investment Ever story on Ep645: Beware of Idiosyncratic Risks.
Larry deeply understands the world of academic research and investing, especially risk. Today, Andrew and Larry discuss two chapters of Larry’s book Investment Mistakes Even Smart Investors Make and How to Avoid Them. In this fourteenth series, they discuss mistake number 26: Do You Fail to Compare Your Funds to Proper Benchmarks? And mistake 27: Do You Focus On Pretax Returns?
Did you miss out on previous mistakes? Check them out:
ISMS 8: Larry Swedroe – Are You Overconfident in Your Skills?ISMS 17: Larry Swedroe – Do You Project Recent Trends Indefinitely Into the Future?ISMS 20: Larry Swedroe – Do You Extrapolate From Small Samples and Trust Your Intuition?ISMS 23: Larry Swedroe – Do You Allow Yourself to Be Influenced by Your Ego and Herd Mentality?ISMS 24: Larry Swedroe – Confusing Skill and Luck Can Stop You From Investing WiselyISMS 25: Larry Swedroe – Admit Your Mistakes and Don’t Listen to Fake ExpertsISMS 26: Larry Swedroe – Are You Subject to the Endowment Effect or the Hot Streak Fallacy?a...

BIO: Dr. Jitipol Puksamatanan heads macro and wealth research at CGS-CIMB Securities (Thailand). He develops actionable investment ideas, independent economic analysis, and asset allocation strategies.
STORY: Jitipol learned as much as he could about a stock he was interested in. He was very confident in this stock. So much so that even when the stock price fell, and he made a loss, he doubled his investment, believing the price would go up, but it never did. Jitipol lost all his savings in this investment.
LEARNING: Investing is about knowing yourself and what you’re doing. Investing is not gambling; don’t expect overnight success.
 
“Investing is not a timed sport with a predetermined end time. If you’re seeking financial freedom, invest in the long-term and let time be your friend.”Jitipol Puksamatanan 
Guest profileDr. Jitipol Puksamatanan heads macro and wealth research at CGS-CIMB Securities (Thailand). He develops actionable investment ideas, independent economic analysis, and asset allocation strategies.
Over the course of two decades, Dr. Jitipol has worked with securities, banks, and asset management companies.
Worst investment everJitipol learned as much as he could about a stock he was interested in. He knew the company’s CEO and the management team; he knew what they were doing and how they did business. Jitipol was very confident in this stock. So much so that even when the stock price fell, and he made a loss, he doubled his investment, believing the price would go up, but it never did. Jitipol lost all his savings in this investment.
Lessons learnedInvesting is about knowing yourself and what you’re doing.Investing is not gambling; don’t expect overnight success.
Andrew’s takeawaysTrying to win back your losses is a dangerous game. It’s better to take a break, leave it, and let your mind and emotions get back on track.Before investing after a loss, ask yourself the best investment for this money.
Actionable adviceInvesting is not a timed sport with a predetermined end time. If you’re seeking financial freedom, invest in the long term and let time be your friend.
Jitipol’s recommendationsJitipol recommends listening to investment podcasts for new ideas and to gain knowledge.
No.1 goal for the next 12 monthsJitipol’s number one goal for the next 12 months is to expand his community and build deeper relationships.
Parting words 
“Good luck, happy investing, and remember to make friends.”Jitipol Puksmatanan 
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Connect with Jitipol PuksamatananLinkedInTwitterFacebookWebsite
Andrew’s booksHow to Start Building Your Wealth Investing in the Stock Marketa href="https://amzn.to/2PDApAo" rel="noopener noreferrer"...

BIO: Anatoliy Labinskiy is an entrepreneur, eCommerce expert, and a holder of 4-time Two Comma Club awards. He is the founder of GSM Growth, an agency that helps e-commerce entrepreneurs achieve a new level of growth in their businesses.
STORY: When Anatoliy and his partner decided to scale their e-commerce shoe business, they paid a supplier in China $250,000 upfront and let him handle everything. The supplier sent customers low-quality shoes and eventually stopped shipping products despite having large orders. The partners had to refund customers and lost all the money they’d paid the supplier.
LEARNING: Double-check with your supplier how the product looks and works before scaling your sales. Think about how you’ll control your inventory once you scale your sales. Start slow.
 
“When you start scaling your business, even when you start just seeing a couple of sales here and there, ask your supplier to send you pictures and videos of the product in the warehouse.”Anatoliy Labinskiy 
Guest profileAnatoliy Labinskiy is an entrepreneur, eCommerce expert, and a holder of 4-time Two Comma Club awards. He is the founder of GSM Growth, an agency that helps e-commerce entrepreneurs achieve a new level of growth in their businesses. He is also a co-founder of EcomScout.io, an AI-powered service that tracks all loss events in advertising campaigns, providing real-time data and insights for informed decision-making and optimized ad spending.
In addition to his entrepreneurial pursuits, Anatoliy hosts the highly acclaimed Ecom Business Stream Podcast. The podcast showcases real-life stories from successful entrepreneurs, executives, investors, and thought leaders, offering a glimpse into their journeys to success in the business world.
Recognized for his outstanding achievements, Anatoliy Labinskiy is a member of the Forbes Business Council. He also proudly holds a place among the Top 100 USA Entrepreneurs with Ukrainian Origins, underscoring his influence and impact in the dynamic realm of e-commerce.
As an international speaker, Anatoliy shares his knowledge and expertise with audiences worldwide, further establishing himself as a leading figure in the e-commerce landscape.
Worst investment everIn 2019, Anatoliy and his partner decided to scale their e-commerce business. At the time, they were selling leather shoes. They pumped in $250,000 to pay the supplier for inventory and to ship to customers instantly. They had worked with this supplier for a couple of months, so they let him handle everything. The partners had never seen the shoes they were selling in real life. They had only seen the pictures provided by the supplier.
Then, customers started sending emails complaining about the quality of the shoes. They thought it was just the usual case of a few unhappy customers and didn’t take it seriously until one customer insisted on sending back the shoes she had received so that the partners could see what they were selling. The shoes were sent to Anatoliy’s partner, who was in Minnesota. When the shoes arrived and the partner opened the box, it was unbelievable. The shoes had the smell of some toxic material. The shoes were plastic and wrapped in a garbage bag. The partners couldn’t believe what they were seeing. They couldn’t believe they had paid $250,000 for such crap.
They contacted the supplier, who assured them he would ship the correct product. Two weeks after this conversation, the partners started receiving customer emails complaining that they hadn’t received...

BIO: Therapong Vachirapong is a Managing Director and a Head of Equity Research at Phatra Securities PLC.
STORY: Therapong was a risk-averse investor who hardly took any risks. Therefore, he missed out on many investment returns and didn't increase his returns. The only time he’d take a risk was buying stocks when the prices were very low and in most cases, these stocks never grew in value.
LEARNING: Avoid the maximum drawdown. You cannot increase your return without taking calculated risks. Have an investment style to avoid investing in everything.
 
“Investing is actually not difficult as long as you don’t get emotional and make irrational decisions when prices change.”Therapong Vachirapong 
Guest profileTherapong Vachirapong is a Managing Director and a Head of Equity Research at Phatra Securities PLC. He served as the Co-Head of Equity Research and Banking Analyst until May 2018, covering fundamental equity analysis of Thailand finance and securities companies. He also covered strategy and the financial institutions sector for Thailand and worked closely with BofA Merrill Lynch Research Division regional financials team. He was also a part of the ASEAN investment strategy team. He joined Phatra in 1997.
He won the IAA Awards for Analyst in the Financials sector in the Year 2013 and Best Research House for two consecutive years (2013-2014) by the Investment Analysts Association (IAA)
Theraphong holds an MBA in Finance from Western International University, Arizona, USA, and a BA in Accounting and Finance from Thammasart University.
Worst investment everTherapong was a risk-averse investor who hardly took any risks. Therefore, he missed out on many investment returns and didn't increase his returns. The only time he’d take a risk was buying stocks when the prices were very low, and in most cases, these stocks never grew in value.
Lessons learnedYou cannot increase your return without taking calculated risks.Gain financial literacy before you start investing.Have an investment style to avoid investing in everything.
Andrew's takeawaysYour financial background will affect how you view risks.
Actionable adviceFind your own investment style and understand it before committing to it.
Therapong's recommendationsTherapong recommends reading Capitalism without Capital and The Psychology of Money to understand the business world, globalization, and technology before investing.
No.1 goal for the next 12 monthsTherapong's number one goal for the next 12 months is to start investing and building a retirement portfolio because he's about to retire.
Parting words 
“Stick to your investment style and be patient. At the end of the day, investing is not difficult as long as you take emotions out of it and stay true to your style.”Therapong Vachirapong 
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Connect with Therapong VachirapongLinkedIna href="https://www.kkpfg.com/th/home" rel="noopener...

BIO: Dr. Carolyn McClanahan is a physician turned financial planner. In addition to working in her financial planning practice, she speaks regularly on the interplay between health and financial issues, particularly regarding aging, chronic illness, end-of-life, long-term care, health care reform, and health care costs.
STORY: Carolyn lost a good chunk of her portfolio while doing active management.
LEARNING: There’s nobody out there who can be consistently smart to beat the market. Know your money goals. Be careful of overconfidence bias.
 
“We (doctors) think just because we’re smart at medicine, that we can beat the market, we can pick the best investments, and get rich.”Carolyn McClanahan 
Guest profileDr. Carolyn McClanahan is a physician turned financial planner. In addition to working in her financial planning practice, she speaks regularly on the interplay between health and financial issues, particularly regarding aging, chronic illness, end-of-life, long-term care, health care reform, and health care costs. She is an Investopedia Top 100 advisor, serves on the CNBC Financial Advisor Council, and writes for various publications. She is quoted regularly in the Washington Post, New York Times, and CNBC.
Worst investment everCarolyn started experimenting with investing in the 90s when she was in her 30s. Her husband inherited a little money from his parents, and they invested it. The investment did super well because it was the mid-90s.
Her husband didn’t want to be an engineer anymore. He wanted to be a track coach and a photographer. The couple tried to find a financial planner to help them plan their finances to accommodate the husband’s wishes. All the financial planners wanted to do was take over the couple’s money and charge a fee to put them in a bunch of mutual funds. They didn’t do actual financial planning.
That’s why Carolyn decided to go back to school. She did stuff like day trading along the way, which was crazy. Carolyn also became a financial planner and got to learn about mutual funds. She spent so much time picking these great mutual funds that were supposed to grow beyond everything else. She also started investigating alternative assets.
The stock market crashed in 2008-2009, and Carolyn suffered a massive loss due to active management.
Lessons learnedEverybody is brilliant in a different way, but there’s nobody out there who can be consistently brilliant to beat the market.Know your money goals. For short-term money, invest conservatively. For long-term money, you can be more aggressive, but don’t try to pick what’s going to do best because you’re not going to know what that is—pick the whole basket.
Andrew’s takeawaysActive management makes it very difficult to beat the market.Set up a passive investment account and let it grow.Be careful of overconfidence bias.
Actionable adviceKnow your money goals and your time horizon, and make sure you have an investment policy statement that you follow and stick to through thick and thin, and you’ll be okay.
No.1 goal for the next 12 monthsCarolyn’s number one goal for the next 12 months is to start her succession plan, so she’s hoping to hire three new advisors, grow the practice a little more, and get ready to launch herself in the next five to 10 years.
Parting words 
“Just live life fully every day because...

In this episode of Investment Strategy Made Simple (ISMS), Andrew gets into part two of his discussion with Larry Swedroe: Ignorance is Bliss. Today, they discuss two chapters of Larry’s book Investment Mistakes Even Smart Investors Make and How to Avoid Them. In this thirteenth series, they discuss mistake number 24: Do You Believe More Heads Are Better Than One? And mistake 25: Do You Believe Active Managers Will Protect You from Bear Markets?
LEARNING: Invest conservatively instead of following the crowd. The best way to minimize the risks of a bear market is to hyper-diversify.
 
“The only way to help minimize those risks and be safe is not to take risks, but then, you won’t get any actual returns, and it’ll be hard to reach your goals. The next best thing is to hyper-diversify.”Larry Swedroe 
In this episode of Investment Strategy Made Simple (ISMS), Andrew gets into part two of his discussion with Larry Swedroe: Ignorance is Bliss. Larry is the head of financial and economic research at Buckingham Wealth Partners. You can learn more about Larry’s Worst Investment Ever story on Ep645: Beware of Idiosyncratic Risks.
Larry deeply understands the world of academic research and investing, especially risk. Today, Andrew and Larry discuss two chapters of Larry’s book Investment Mistakes Even Smart Investors Make and How to Avoid Them. In this thirteenth series, they discuss mistake number 24: Do You Believe More Heads Are Better Than One? And mistake 25: Do You Believe Active Managers Will Protect You from Bear Markets?
Did you miss out on previous mistakes? Check them out:
ISMS 8: Larry Swedroe – Are You Overconfident in Your Skills?ISMS 17: Larry Swedroe – Do You Project Recent Trends Indefinitely Into the Future?ISMS 20: Larry Swedroe – Do You Extrapolate From Small Samples and Trust Your Intuition?ISMS 23: Larry Swedroe – Do You Allow Yourself to Be Influenced by Your Ego and Herd Mentality?ISMS 24: Larry Swedroe – Confusing Skill and Luck Can Stop You From Investing WiselyISMS 25: Larry Swedroe – Admit Your Mistakes and Don’t Listen to Fake ExpertsISMS 26: Larry Swedroe – Are You Subject to the Endowment Effect or the Hot Streak Fallacy?a...