Three Concepts That Investors Get Wrong | # 6

Published: July 7, 2016, 2 a.m.

Do you know which three concepts most investors \u2013 retail and professional alike \u2013 get wrong? One is asset allocation; two is a bit different \u2013 it\u2019s actually a lack of awareness of a type of investment that actually pays you to own it (confused?); third is a misconception about dividends and dividend stocks. Diving in, when it comes to asset allocation, different institutions and money managers often suggest significantly different asset allocations. So which allocation is the most effective? Turns out that\u2019s the wrong question. There\u2019s a far more important issue lurking here. Meb will tell you what it is. Next, we move on to a discussion few investors know about. It involves a way to be paid to own a fund. Interested? Finally, Meb risks alienating more than a handful of listeners by presenting an unorthodox perspective on dividend investing. But if you\u2019re a dividend investor, you need to hear what he\u2019s saying. Turns out there\u2019s a tweak on a traditional dividend strategy that produced significantly better results when back-tested. Learn what this tweak is, and far more, on Episode 6 of The Meb Faber Show.\nLearn more about your ad choices. Visit megaphone.fm/adchoices