Braden Warwick

Welcome to Episode 411.

Today we have a pretty nerdy but very interesting episode on expected returns.

It's stuff that I did when I was in academia, working with industry partners.

And I always found that pretty impactful when you're actually able to make a difference on real product and real tangible research that can be applied in the real world.

So I think hopefully they took that same experience in working with us, but it was definitely really cool to be on the other side of that, where we were able to leverage academia and feel like we're in the bleeding edge of this type of research.

So yeah, really cool experience all around.

I also think it's pretty cool that they kind of went through the full range of investor profiles, if you will.

They started as a DIY investor.

They were obviously very interested in that, enough so to listen to our podcast on a regular basis.

And then they also were considering fee-only financial planning.

And I think that's a really popular...

service right now.

And there's a lot of talk around only financial planning and a lot of people promoting it.

And I don't want to discredit any of the good work that they're doing.

But I also think that this client's really laid out the benefits of the AUM model and working with someone and working with a brand that they can trust over time that spans just beyond working with one individual, that they're really working with a team of people that have that person's best interests in mind.

I think it really speaks to what we're doing here.

So I thought it was really cool to read.

Before I get there, though, I just want to set the stage a little bit with regards to the research project and with what you'll hear in the interview with John, the problem that we gave him.

We were using the multivariate normal distribution.

We wanted to change the shape of the distribution, look at the higher order moments.