• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar

Intelligent Investing

Insightful. Independent. Innovative.

  • Why Us
    • Our Story
      • Insightful
      • Independent
      • Innovative
    • One Passion
    • Core Values
    • Philosophy
      • 3 Pillars of Thought
      • Behavioral Coaching
      • Wealth Management Philosophy
      • Wealth Management Process
    • What Makes Us Different
    • Services We Offer
  • Team
    • Hans Blake, CFA, CPA
    • Tom Theodore, CFP®
    • Amanda Blake
  • Library
    • Blogs
    • Podcasts
    • Videos
      • Intelligent Investing Videos
      • CFA® Videos
      • Market Videos
      • Behavioral Finance Videos
    • White Papers
  • Who We Serve
    • Private Wealth
    • Pre-Retirees and Retirees
    • Professionals and Executives
    • Women and Widows
    • Millennials and HENRYs
    • Nonprofits and Institutional Wealth
  • Talks
    • WRAP Talk
    • PREP Talk
    • STAR Talk
  • Events
    • Upcoming Events
    • Past Events
    • First Friday Networking @ Noon
  • Client Login

The Shrinking Pool of Victims

September 11, 2019 by Hans Blake, CFA, CPA

Podcast: Play in new window | Download

Shrinking Pool of Victims

Reading Time: 2 minutes

On today’s Intelligent Money Minute, we’ll interview Larry Swedroe on how the shrinking pool of victims makes it difficult to outperform. In his book Why Alpha is Becoming More Difficult, this is the second issue. Referencing William Sharpe, Larry notes that if one investor outperforms the market, consequently somebody else has to underperform. Larry points out the high percentage of trading done by individual investors in the 30s, 40s, and 50s.  Today, more trading is done by institutional investors, high-frequency traders, etc. Two problems have arisen because of this switch. First, people are abandoning active management due to its bad history. Second, and consequently, those who have underperformed are abandoning active management. Larry states that there’s not enough alpha to go around, and he asks the question, “Who is left to exploit?” As the pool shrinks, it is becoming harder and harder to outperform.

At Intelligent Investing, we believe that no advisor can consistently deliver outperformance. As Nick Murray says in one of his books, “Adam and Eve were goal-focused investors…until the serpent told them they could be–with just a little guidance from him–smart enough to outperform. Remember, outperformance is the apple. Don’t bite into it. To learn more about the other reasons Larry believes the Quest for Alpha is so difficult, visit our blog section.

We’ll be interviewing Larry on several podcasts regarding markets, passive investing, and diversification, so be sure to subscribe to our Intelligent Money Minute podcasts.

Larry was among the first authors to publish a book that explained the science of investing in layman’s terms, “The Only Guide to a Winning Investment Strategy You’ll Ever Need.” He has since authored seven more books.

Larry Swedroe Bio

Since joining the Buckingham Strategic Wealth in 1996, Chief Research Officer Larry Swedroe has spent his time and energy educating investors on the benefits of evidence-based investing.

In his role as chief research officer and as a member of the firm’s Investment Policy Committee and Board of Directors, Larry regularly reviews the findings published in dozens of peer-reviewed financial journals, evaluates the outcomes and uses the result to inform the firm’s formal investment strategy recommendations.

Larry’s dedication to helping others has made him a sought-after national speaker. He has made appearances on national television shows airing on NBC, CNBC, CNN and Bloomberg Personal Finance. Larry is a prolific writer, contributing regularly to multiple outlets, including Advisor Perspectives and ETF.com.

Before joining Buckingham, Larry was vice chairman of Prudential Home Mortgage and senior vice president at Citicorp.

Larry holds an MBA in finance and investment from NYU, and a bachelor’s degree in finance from Baruch College.

Related posts:

4 Secrets to Know When Selling Your Home
Misbehaving with Real Estate
Share, Email, or Print This:
FacebookLinkedInTwitterEmailPrintFriendly

Filed Under: Economy, Investing/Markets Tagged With: Institutional Wealth Managers, Markets, SC, Stock Market

Subscribe to Intelligent Money Minute Podcast

Apple PodcastsGoogle PodcastsAndroidby EmailRSSMore Subscribe Options

Primary Sidebar

Search Intelligent Investing

We Want to Hear From You


Choose a Blog Category

More Blogs for Intelligent Investors

Shelly Hamilton Profile

From Trials to Blessings: The Story of Patch the Pirate

February 18, 2021 By Hans Blake, CFA, CPA

Podcast: Play in new window | Download

We never know when unexpected trials will come. Perhaps you’re left wondering why and how these trials could be part of God’s sovereign plan. Back in 1978, Ron and Shelly Hamilton were teaching at Bob Jones University when Ron started to notice reading difficulties in his left eye. After a series of tests, they discovered […]

Radio

HENRY’s Investing Crisis

February 11, 2021 By Hans Blake, CFA, CPA

I recently had the opportunity of being invited back to the South Carolina Business Review on South Carolina Public Radio to discuss the unique problems that HENRYs (High Earner Not Rich Yet) face. Mike Switzer says that in his day, they were referred to as Yuppies (Young Urban Professionals). But no matter how you refer […]

Matt Hougan

The Risks of Cryptocurrency & Bitcoin

February 10, 2021 By Hans Blake, CFA, CPA

Podcast: Play in new window | Download

On this episode of Intelligent Money Minute, we interview Matt Hougan, Chairman of Inside ETFs on the risks of cryptocurrency and bitcoin. From bitcoin to dogecoin to chainlink, cryptocurrency is a reigning hot topic in the financial realm. That being said, there’s an influx of information and “success” stories making it hard to learn the […]

Most Recent Insights

  • From Trials to Blessings: The Story of Patch the Pirate
  • HENRY’s Investing Crisis
  • The Risks of Cryptocurrency & Bitcoin
  • Lessons Learned From Hedge Fund and Reddit Greed
  • Cryptocurrency & How It Works

Upcoming Events

  1. Retirement Madness- How to Avoid Upsets in Retirement

    March 5 @ 12:00 pm - 1:00 pm

View All Events

  • Home
  • Why Us
  • Team
  • Library
  • Who We Serve
  • Services
  • Events
  • Connect
  • Disclosures

Copyright © 2021 · Infinity Pro on Genesis Framework · WordPress · Log in

  • Home
  • Why Us
    ►
    • Our Story
    • Core Values
    • Our Philosophy
    • Three Pillars of Thought
    • What Makes Us Different
  • Library
    ►
    • Blogs
    • Podcasts
    • Videos
      ►
      • Intelligent Investing Videos
      • Behavioral Finance Videos
      • CFA® Videos
      • Market Videos
    • White Papers
  • Intelligent Team
  • Intelligent Talks
  • Intelligent Events
  • First Friday Networking at Noon
  • Who We Serve
  • Services We Offer
  • Connect With Us
  • Client Login