TIP849: Average Returns Can Still Make You Wealthy w/ David Fagan
The Investor's Podcast (We Study Billionaires) - The Investor’s Podcast NetworkShow Notes
In this episode, Stig Brodersen speaks with David Fagan about Total Wealth Performance and why someone with average investment returns can still build a meaningful net worth. They discuss why saving is the first step in wealth creation, why financial independence is a matter of intention rather than luck, and how idle cash quietly becomes one of the most expensive decisions investors ever make.
IN THIS EPISODE YOU’LL LEARN:
(00:00:00) Intro
(00:04:20) Why David has been a saver ever since he blew his entire net worth on a Hot Wheels racetrack at age eight
(00:12:34) Why money decisions that look odd are often rational given someone's lived experiences
(00:13:56) Why financial independence is not luck but small habits that compound
(00:17:47) What Total Wealth Performance is, and why the return on your broker statement is not your real return
(00:22:29) How Stig thinks about financial independence
(00:29:34) The ABCs of front-end performance: availability, behavior, and configuration
(00:37:55) Why idle cash is one of the most expensive decisions an investor can make
(00:45:00) Why net worth beats portfolio returns as a scorecard during the accumulation phase
(00:54:13) How and why tax is a real expense
Disclaimer: Slight discrepancies in the timestamps may occur due to podcast platform differences.
BOOKS AND RESOURCES
Join the exclusive The Intrinsic Value Mastermind Community.
Check out Stig and David's free educational resource, Compounding Simplicity.
Watch David Fagan's free educational videos.
Read Charles Schwab's study, Does Market Timing Work?
Listen to our interview with David Fagan about Why Simplicity Beats Complexity.
Listen to our interview with David Fagan about Simple Investing.
Listen to our interview with David Fagan about investing like a business owner.
Listen to our interview with David Fagan about Buffett's favorite business book.
Connect with David on LinkedIn or through mbf Chartered Professional Accountants.
Stig's blog post on his portfolio and track record since 2014.
Related books mentioned in the podcast.
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