William Bernstein: If You've Won the Game, Stop Playing

<p>Our guest this week is noted author and advisor, William Bernstein. Bill’s background and entree to finance is unique—a neurologist by training, Bill self-taught himself the principles of investing and asset allocation, eventually parlaying that knowledge into a successful financial advisory practice and a series of influential, critically acclaimed books such as &quot;The Intelligent Asset Allocator.&quot; In this conversation, we explore Bill’s background and how it shaped his development and thinking as an investor and how he applies those lessons in working with clients who are trying to meet goals like a comfortable, secure retirement.</p> <ul> <li>“I had to figure out how to save and invest on my own”: Bill’s crash course into investing and constructing a portfolio (1:29)</li> <li> <pre><code> “I had to figure out how to save and invest on my own”: Bill’s crash course into investing and constructing a portfolio (1:29) </code></pre> </li> </ul> <p>• “I had to figure out how to save and invest on my own”: Bill’s crash course into investing and constructing a portfolio (1:29)<br /> • Separating the wheat from the chaff: How Bill decides what investing research matters and what doesn’t (4:30)<br /> • Top of the list: Books that profoundly influenced Bill’s investment philosophy and approach (5:45)<br /> • “The overwhelming science of investing does not speak well of active management”: Bill on why empirical data ought to settle most questions (and why active-share doesn’t hold up to scrutiny) (7:02)<br /> • “You approach it with extreme caution”: Bill explains why investors should be skeptical of most factors they encounter in the “factor zoo”, save a few (9:27)<br /> • A question that’s giving Bill pause: Is value too crowded a trade? (10:33)<br /> • Is low-volatility the most attractive factor from a behavioral standpoint? Bill worries it’s gotten too expensive. (12:02)<br /> • Fingers (and toes) crossed: Bill thinks value is cheap enough to stick with (12:55)<br /> • “Really, not very much”: Bill on how