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Pragmatic Investing
In this video, we go over some basic financial advice for families including budgeting strategies like envelope budgeting, tips on investing in a balanced portfolio across assets like stocks, real estate, crypto, and more. We discuss insurance, credit cards, buying in bulk, and investing in relationships and opportunities. This is practical financial hygiene advice, not get rich quick schemes.
Malcolm: [00:00:00] This is boring, basic. Financial advice. But I feel like everyone out there is some sort of get what you couldn't do or
Simone: like we'll look at financial advice. It's people looking at all these like charts and making it really complicated and they're way above my pay grade or like way below my pay grade, but pretending to be above, which is the worst.
Would you like to know more?
Malcolm: Hello, Simone. It is exciting to be here with you
Simone: today. I'm so excited. Yeah. We're going to talk today about the most important investment of all, your health.
No, just kidding. We're constantly sick because we have kids in school.
Malcolm: So the most important investment of all is money. Yeah. The
Simone: most important investment of all, money.
Malcolm: Screw your health. That's a good, that's a good, for your
Simone: health. Burn bright, die young,
Malcolm: right? Yeah. So, it is true. The, the, the most important investment is money.
After maybe kids, I guess, like, you know, we are pernatalists, so we've got to say that matters as well, but I, you know, I don't know how much actual control you have over the outcome of that. I think that's why
you
Simone: need to have a diversified portfolio. That means a lot of kids. [00:01:00]
Malcolm: Yes. So this is actually a follow up episode to an episode that we did on how to get rich.
Where we just went over like, you know, the basics of like the actual financial world starting company and stuff like that. And I think we'll do more topics on this cause the video did really, really well and I did not expect it to do well because it's not our normal sort of a topic. But obviously something I know a lot about I should mention, you know, degree, I've got my MBA from Stanford.
Simone has her graduate degree from Cambridge. Both of us have worked in venture capital. Both of us have worked in private equity. And when it comes to investments, Simone, you had a really interesting way of framing it that you were going over with me earlier today about sort of.
Simone: Yeah. We were talking about the issue of, of many people we know who've made a lot of money through investing doing it essentially by making bets, like all tact, tactically strategically.
Statistically weren't very ill [00:02:00] advised but then paid off and then they just assume I'm a great investor. And you actually saw a lot of this happen during the pandemic. The, and I think a lot of, of poker players and coaches who like teach Bayesian thinking now who have. Really summed up this kind of thinking really well.
They talk about when they're coaching poker players and they teach them to think in, in sort of a Bayesian way to make very well considered bets which are always calculated bets. And a thing that constantly frustrates them is the people they're coaching, like they'll lose a hand and they'll be like, yeah, well, I made, you know, I made the wrong choice.
I messed up cause I lost. And they're like, no, no, no. You didn't make the wrong choice because you lost, you made the right choice, but you still lost because in the end, there's some chance involved in these bets. And the same case happens with investing. You know, sometimes you make all the right choices and you lose money, but
Published on 2 years, 1 month ago