ISMS 24: Larry Swedroe – Confusing Skill and Luck Can Stop You From Investing Wisely

<p>In this episode of Investment Strategy Made Simple (ISMS), Andrew and Larry discuss two chapters of Larry’s book <em>Investment Mistakes Even Smart Investors Make and How to Avoid Them</em>. In this fourth episode, they talk about mistake number 7: Do you confuse skill and luck? And mistake number 8: Do you avoid passive investing because you sense a loss of control?</p><p><strong>LEARNING: </strong>When gauging a fund manager’s performance, consider risk-adjusted performance. If you’re a passive investor and use a systematic strategy, you’re 100% in control.</p><p>&nbsp;</p><blockquote class="ql-align-center"><strong>“You have to accept that you can only control what you can control; you can’t control the unpredictable things that happen.”</strong></blockquote><blockquote class="ql-align-center">Larry Swedroe</blockquote><p>&nbsp;</p><p>In today’s episode, Andrew continues his discussion with Larry Swedroe, head of financial and economic research at <a href="https://buckinghamwealthpartners.com/" rel="noopener noreferrer" target="_blank">Buckingham Wealth Partners</a>. You can learn more about Larry’s Worst Investment Ever story on <a href="https://myworstinvestmentever.com/ep645-larry-swedroe-beware-of-idiosyncratic-risks/" rel="noopener noreferrer" target="_blank">Ep645: Beware of Idiosyncratic Risks</a>.</p><p>Larry deeply understands the world of academic research and investing, especially risk. Today Andrew and Larry discuss a chapter of Larry’s book <a href="https://amzn.to/3J5ZHz4" rel="noopener noreferrer" target="_blank"><em>Investment Mistakes Even Smart Investors Make and How to Avoid Them</em></a>. In this fifth series, they talk about mistake number seven: Do you confuse skill and luck? And mistake number eight: Do you avoid passive investing because you sense a loss of control?</p><p>Missed out on previous mistakes? Check them out:</p><ul><li><a href="https://myworstinvestmentever.com/isms-8-larry-swedroe-are-you-overconfident-in-your-skills/" rel="noopener noreferrer" target="_blank">ISMS 8: La