EP-112 "JUST KEEP BUYING" with NICK MAGGIULLI

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Generationally low interest rates, inflation, unthinkable geopolitical risks, the speed of information and the prevalence of noise challenge our long-held conventional wisdoms. Many investors are at a loss as to how to save and invest to meet their goals.

Against that fearsome backdrop, Nick Maggiulli, joins us to talk about his book “Just Keep Buying” due out in April on Harriman House Publishing.

Nick is the creator of the successful OF DOLLARS AND DATA blog and is the Chief Operating Officer at RITHOLTZ WEALTH MANAGEMENT.

His book challenges many widely-held investment beliefs, and recasts them with a data driven analysis for a modern investor.

Background-

The sequence that:

Got Nick to Stanford
Led to the development of the blog / Nick’s role at RWM

What problem did Nick want to solve with book?

Good slot to talk about your powerful introduction
Comfort with data to analyze “rules of thumb” and other bromides

The Decision to Analyze Saving vs Investing

The problems with saving advice
- What did the data uncover?
- How does this relate to spending?
The problems with investing advice
- What is one of the typical sayings that the data doesn’t support
  - “Just keep buying”
- How should investors reach “escape velocity” past their liabilities?
- The importance of time horizons and liquidity cushions

Cash Flow vs Asset Growth (strong personal balance sheet)

How do you think about investing to maximize one’s income vs the growth of the balance sheet?
How do you get people’s brains/emotions out of the way of data driven choices?
How do you think about guardrails or insurance around 1% events either in the market or personally? Function of cash? Allocation vs barbell approach?