NerdWallet's Smart Money Podcast
Learn How Random Investments Can Outperform Managed Funds
29 May 2024
Learn why randomly choosing individual stocks can beat expert investing strategies — and what that means for your portfolio. Can random stock picks outperform Wall Street professionals? What kind of portfolio returns can low-cost index investing drive? Hosts Sean Pyles and Anna Helhoski delve into the astonishing results of a dart-throwing experiment by Wall Street Journal columnist Spencer Jakab and his team, which pitted random stock selections against high-profile hedge fund picks. The hosts explore this intriguing setup and its outcomes, offering actionable insights into the power of simple, low-cost index funds and ETFs over expensive investment managers. Their insights are intended to offer a better understanding of the practicality of low-cost index funds, the importance of maintaining a diversified portfolio, and the pitfalls of frequent market adjustments. Then, Sean and Anna delve into the latest financial headlines, including findings from the Federal Reserve's Economic Well-Being of US Households report for 2023, April’s drop in home sales, and Google Flights adding Southwest Airlines fares to its search results. In their conversation, the Nerds discuss: index funds, investment strategies, stock market, ETFs, dart-throwing experiment, investing tips, low-cost investing, financial wellbeing, active vs. passive investing, hedge funds, portfolio diversification, The Wall Street Journal, stock picks, investment success, random stock selection, economic well-being, smarter investing, outperforming the pros, investment managers, A Random Walk Down Wall Street by Burton Malkiel, stock listings, mutual funds, stock performance, financial journalists, retirement savings, financial stress, household income, emergency expenses, high mortgage rates, affordable housing, home sales, previously owned homes, Google Flights, Southwest Airlines, travel expenses, airfare comparison, financial education, money management, financial planning, investment portfolio, stock market analysis, market adjustments, investment risks, and diversification benefits. To send the Nerds your money questions, call or text the Nerd hotline at 901-730-6373 or email [email protected]. Like what you hear? Please leave us a review and tell a friend. Learn more about your ad choices. Visit megaphone.fm/adchoices
No persons identified in this episode.
This episode hasn't been transcribed yet
Help us prioritize this episode for transcription by upvoting it.
Popular episodes get transcribed faster
Other episodes from NerdWallet's Smart Money Podcast
Transcribed and ready to explore now
Economic Chaos and Car Costs: How to Weigh Risks in Uncertain Times
05 Jun 2025
NerdWallet's Smart Money Podcast
Recover from Vacation Overspending and Avoid Costly Rental Property Management Mistakes
02 Jun 2025
NerdWallet's Smart Money Podcast
What to Do When the U.S. Gets Downgraded and Your Travel Credit Card Stops Paying Off
29 May 2025
NerdWallet's Smart Money Podcast
Should You Keep Your Old Home? The Financial Case for Selling vs. Renting
26 May 2025
NerdWallet's Smart Money Podcast
How to Prepare for Stagflation and Make Your Insurance Work Harder
22 May 2025
NerdWallet's Smart Money Podcast
Smart Planning Sessions: Investing Through Uncertainty and Planning for Early Retirement Abroad
19 May 2025
NerdWallet's Smart Money Podcast