Lessons from my favorite investing book

Sound Investing

Warning: this podcast is geared for investors who like numbers.

It is focused on some of the best lessons from Paul's favorite book on investing. The Matrix Book 2021 is 100 pages (8 1/2 x 14) almost entirely dedicated to listing the annual returns of dozens of asset class, some from 1926 to 2020 and others starting where records of those asset classes were first tracked. Those asset classes include U.S. and international large cap blend, large cap value, small cap blend, small cap value, commodities, short and long term U.S. and international corporate and government bonds and inflation. In most cases returns are listed for 1, 5, 10, 15, 20, 50 and 80 years.

Topics:

1. How do the S&P 500 and Total Market Stock Indexes compare? 3:20

2. How have small cap blend (growth and value) and small cap value performed? 8:33

3. Not all indexes are the same. How do the Russell and DFA index construction and returns differ? 11:00

4. Have recent small cap and value return premiums been as good as the past? 17:00

5. How have international asset performed? 19:56

6. How have emerging market performed? 22:00

7. How have bonds performed for the past 20 and 80 years? 23:35

8. How has inflation impacted returns over the past 20, 50 and 80 years? 25:30

9. Are commodities a good hedge against inflation? 27:52

10. What is the best investment to protect against inflation? 30:40

11. Which return is the most meaningful, before or after inflation? 33:17

12. What are the most important lessons from The Matrix Book 2021? 42:13

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