#149- Becoming a Smarter Investor with Steve Foerster

The Kuderna Podcast

Stephen Foerster, a professor of finance at the Ivy Business School, discusses various topics related to investing, including the impact of election years on the markets, the importance of having an investment philosophy, and the role of bonds in a portfolio. Foerster shares his personal investment philosophy and highlights the challenges of trying to outperform the market. He also shares stories from history, such as Roman generals and the New York Mets, to illustrate investing lessons about knowing when to do nothing and understanding opportunity costs.

Keywords: investing, election years, markets, investment philosophy, bonds, national debt, government bonds, corporate bonds, risk-free, interest rates, inflation, bond prices, investment horizon, liquidity needs, inverted yield curve, diversification, opportunity costs, financial goals

Chapters 00:00- Introduction and Background of Stephen Foerster

03:33- The Importance of an Investment Philosophy

16:14- The Role of Financial Advisors in Emotional Support

18:07- The Value of Simplicity and Index Funds

20:04- The Impact of Presidential Policies and Interest Rates

28:30- The Concerns Surrounding the National Debt

34:3- Understanding the Distinction between Government Bonds and Corporate Bonds

37:55- The Risk of Not Getting Money Back with Corporate Bonds

44:28- The Inverse Relationship between Interest Rates and Bond Prices

51:53- The Importance of Diversification in Investment Portfolios

57:13- Knowing When to Not Take Action

01:05:46- The Three Levers to Reach Financial Goals