Gary Allen on Business – Sunday, November 23, 2014 – Podcast Now Available

Risk and Reward… but don’t forget about the RISK!

profit-lossEvery investor whether they know it or not, is taking some type of risk in order to generate a potential return. However, too often, people spend all of their time focusing on the potential reward, while ignoring or downplaying the risk. Unfortunately, all of us need to understand that investment results (returns) by definition are random. There is no way to predict with any certainty before it happens what the stock market will return over any given period of time. It is this uncertainty that every investor must live with and learn to embrace in order to be successful.

On this program, I focus on what you should spend most of your time focusing on. Focusing on what you can control as an investor makes more sense than searching for an answer to something that cannot be. Therefore, investors should focus on those items you can control, in order to put the odds in your favor.

The following, in my opinion, are three items that can provide investors with a solid path towards success. On the surface, it seems simple and straight-forward. While there are nuances, it is this simplicity and discipline that provides elegant sophistication and success.

Three controllable investment practices:
1) Manage risk
2) Control expenses
3) Pay attention to taxes

It does not sound like much, but it is the heart and soul of investment success. I hope you enjoy this program.

It is the holiday season and I want to take a moment to thank each of my listeners for supporting my program over the past seventeen years. Thanksgiving is a time for being thankful and there is no doubt that my relationship with KNBR and my listeners over the years has been a wonderful experience. I hope that every one of you has a blessed holiday season, much happiness and a very prosperous and healthy 2015.

Gary Allen on Business
Gary Allen on Business

How to Win the Loser’s Game

Our friends at Sensible Investing TV from the United Kingdom have just released the first episode of their new documentary “How to Win the Loser’s Game.” Robin Powell, the producer of “How to Win the Loser’s Game,” has provided a compelling story about the mutual fund industry, and is a must see for investors and professionals alike.

I will be sharing each weekly episode with a short post and link on my site for my radio program listeners. Robin and his team have done an excellent job of producing a broadcast quality video in a documentary format about how to be a successful investor. It is a great documentary and is a must watch. I would highly encourage my listeners to watch each episode as it comes out.

Robin Powell Producer How to Win the Loser's Game
Robin Powell
How to Win the Loser’s Game
I asked Robin Powell a couple of questions, and here are his thoughts:

Robin, one of the big criticisms of the mutual fund industry is the overall cost structure. What are your thoughts about mutual fund fees?

“It’s well known that we face a pensions crisis. The emphasis so far has been on the need to put more more money into our pensions. It’s true that most of us have to. But we also need to wake up to how much the industry is taking out of our savings – and how little value it’s adding in return.”

Has the mutual fund industry become too large for society? In essence, I am asking is it the right size to deliver on its promise or mission?

“Investors – and the wider economy – would be better served by a fund management industry 20% its current size.”

Robin Powell, producer, “How to Win the Loser’s Game”

Here is a link to the first episode: