The Rational Reminder Podcast

By: Benjamin Felix Cameron Passmore Mark McGrath and Dan Bortolotti
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  • Summary

  • A weekly reality check on sensible investing and financial decision-making, from three Canadians. Hosted by Benjamin Felix, Cameron Passmore, and Dan Bortolotti, Portfolio Managers at PWL Capital, and Mark McGrath, Associate Portfolio Manager at PWL Capital.
    2025 copyright - PWL Capital, all rights reserved
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Economics Personal Finance
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Episodes
  • Episode 345 - AMA #3

    Episode 345 - AMA #3
    Feb 20 2025
    As we continue to answer your questions from our most recent AMA, Ben, Mark, and Dan begin today’s episode with Bitcoin and how its value as an investment has changed over the years. Then, after briefly explaining how to find short clips of this podcast online, we discuss why many companies choose not to list directly on the TXS, how to implement factor investing without factor EFTS, the best way to invest if you could only make one EFT investment in your lifetime, and, and understanding buffered EFTs and market-linked GICs. We also cover expected returns in a corrupt market, return stacking for individuals, academia versus real-world applications, and why stock valuations will never be the same as they were in the past. To end, we look at lump sum investing versus dollar-cost averaging, what to remember regarding asset allocation, how we rebalance portfolios here at PWL Capital, and we wish Ben well as he awaits his diagnosis. Key Points From This Episode: (0:03:30) Unpacking the value of Bitcoin as an investment; past, present, and future. (0:09:58) Why we don’t use YouTube Shorts anymore and how to find our bite-sized clips. (0:10:29) Understanding why many companies refrain from directly listing on the TXS. (0:11:29) An interlude on how we take care of our bodies. (0:14:22) Implementing factor investing without factor ETFs, and Manulife’s multifactor ETFs. (0:19:21) What we would do if we could only invest in one ETF until retirement. (0:22:23) Buffered EFTs and market-linked GICs. (0:26:15) Market efficiency and expected returns in a low transparency/high corruption market. (0:29:50) Whether return stacking is a good idea for individuals, and unpacking leverage. (0:40:44) Balancing proven business philosophies with academic thinking. (0:47:39) The Shiller PE Ratio; why stock valuations are permanently higher than in the past. (0:54:58) Lump sum investing versus dollar-cost averaging. (1:00:09) Asset allocation and how to know which assets to sell first. (1:04:57) How PWL Capital rebalances client portfolios – an operational perspective. (1:10:42) The after show: Testicular cancer and heartwarming reviews. Links From Today’s Episode: Meet with PWL Capital — https://calendly.com/d/3vm-t2j-h3p Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582. Rational Reminder Website — https://rationalreminder.ca/ Rational Reminder on Instagram — https://www.instagram.com/rationalreminder/ Rational Reminder on X — https://x.com/RationalRemindRational Reminder on TikTok — www.tiktok.com/@rationalreminder Rational Reminder on YouTube — https://www.youtube.com/channel/ Rational Reminder Email — info@rationalreminder.caBenjamin Felix — https://pwlcapital.com/our-team/ Benjamin on X — https://x.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Cameron Passmore — https://pwlcapital.com/our-team/ Cameron on X — https://x.com/CameronPassmore Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/ Mark McGrath on LinkedIn — https://www.linkedin.com/in/markmcgrathcfp/ Mark McGrath on X — https://x.com/MarkMcGrathCFP Dan Bortolotti on LinkedIn — https://www.linkedin.com/in/dan-bortolotti-8a482310/ ‘Episode 80: A Planning Checklist, Portfolio Concentration, and Leverage’ — https://rationalreminder.ca/podcast/80 ‘Episode 343: How to Choose an Asset Allocation’ — https://rationalreminder.ca/podcast/343 ‘Episode 234: Prof. Robert C. Merton: ICAPM, Retirement, and Models in Finance’ — https://rationalreminder.ca/podcast/234 ‘Episode 335: What About Warren Buffett?’ — https://rationalreminder.ca/podcast/335 ‘Episode 202: Antti Ilmanen: The Building Blocks of Long-Run Returns’ — https://rationalreminder.ca/podcast/202 ‘Episode 262: Prof. Francisco Gomes: Consumption and Portfolio Choice over the Life Cycle’ — https://rationalreminder.ca/podcast/262 ‘Dan Bortolotti: Index Investing, ETFs and Financial Planning’ — https://thewealthybarber.com/podcast/dan-bortolotti-index-investing-etfs-and-financial-planning-twb-podcast-9/ Manulife Investment Management — https://www.manulifeim.com/retail/ca/en Dimensional Fund Advisors — https://www.dimensional.com/hk-en/financial-professionals Scott Cederburg on LinkedIn — https://www.linkedin.com/in/scott-cederburg-0917b0121/ Corey Hoffstein on LinkedIn — https://www.linkedin.com/in/coreyhoffstein/ We Study Billionaires — https://www.theinvestorspodcast.com/we-study-billionaires/ Hendrik Bessembinder | ASU Search — https://search.asu.edu/profile/2717225 Shiller PE Ratio — https://www.multpl.com/shiller-pe ‘What if You Only Invested at Market Peaks?’ — https://awealthofcommonsense.com/2014/02/worlds-worst-market-timer/ Books From Today’s Episode: The Only Guide You'll Ever Need for the Right...
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    1 hr and 14 mins
  • Episode 344 - Michael Mauboussin: The One Job of an Equity Investor

    Episode 344 - Michael Mauboussin: The One Job of an Equity Investor
    Feb 13 2025
    What if the key to successful investing is about understanding how market expectations, intangible assets, and even your own biases shape the outcome? In this episode, Cameron sits down with Michael Mauboussin, a renowned expert in investment strategies and behavioural finance, to explore how the evolving dynamics of investing influence valuation, investor decision-making, and market efficiency. Michael is the head of Consilient Research at Counterpoint Global, part of Morgan Stanley Investment Management, and an adjunct professor at Columbia Business School, where he teaches courses on investing and decision-making. His work focuses on behavioural biases, skill versus luck, complex adaptive systems, and valuation. In our conversation, we discuss the core principles of equity investing, unpack the evolution of intangible assets, and explore how market dynamics are influenced by index funds. You’ll learn about capital allocation strategies, the shifting landscape of private equity, accounting challenges with intangibles, and how traditional investment frameworks are being redefined. Michael also provides insight into the "free dividend" fallacy, the importance of understanding the basic unit of analysis, the paradox of skill in active management, and more. Join us to learn about market and investing fundamentals to improve your strategy with Michael Mauboussin. Tune in now! Key Points From This Episode: (0:03:08) What the primary job of an equity investor is and the origin of stock returns. (0:05:37) Why dividends are less critical to total shareholder return unless fully reinvested. (0:08:43) Dissect the behaviour of investors in dividend stocks and the "free dividend fallacy." (0:10:01) Value versus growth classifications and how intangible assets impact valuations. (0:16:39) Learn about the potential advantages for companies investing in intangible assets. (0:20:20) How to determine a company's position in the competitive advantage life cycle. (0:24:42) The phase that offers the highest returns and what to consider about newer industries. (0:26:18) Explore the tradeoffs of intangible-intensive companies and the impact on base rates. (0:29:22) Pitfalls of valuation multiples and the implications for systematic value investors. (0:32:25) Relevance of market metrics and how index funds have affected alpha opportunities. (0:38:14) Effects of rising indexed assets and what to consider about market concentration. (0:45:01) Discover the historical link between market concentration and future returns. (0:46:31) How active managers benefit markets and misconceptions about skilled managers. (0:48:46) The value of active managers and advice for structuring investment portfolios. (0:52:44) Unpack the shift from public to private equities and why it happened. (0:55:40) Insights into the benefits of private over public equities for investors. (0:58:00) Ways intangible assets influenced the rise of private equity. (0:59:27) What the market says about future returns and using public equity for diversification. Links From Today’s Episode: Meet with PWL Capital: https://calendly.com/d/3vm-t2j-h3p Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582. Rational Reminder Website — https://rationalreminder.ca/ Rational Reminder on Instagram — https://www.instagram.com/rationalreminder/ Rational Reminder on X — https://x.com/RationalRemindRational Reminder on TikTok — www.tiktok.com/@rationalreminder Rational Reminder on YouTube — https://www.youtube.com/channel/ Rational Reminder Email — info@rationalreminder.caBenjamin Felix — https://pwlcapital.com/our-team/ Benjamin on X — https://x.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Cameron Passmore — https://pwlcapital.com/our-team/ Cameron on X — https://x.com/CameronPassmore Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/ Michael Mauboussin — https://www.michaelmauboussin.com/ Michael Mauboussin on LinkedIn — https://www.linkedin.com/in/michael-mauboussin-12519b2/ Michael Mauboussin on X — https://x.com/mjmauboussin Columbia Business School — https://business.columbia.edu/ Morgan Stanley | Counterpoint Global — https://www.morganstanley.com/im/en-us/individual-investor/about-us/investment-teams/active-fundamental-equity/counterpoint-global-team.html The Heilbrunn Center for Graham and Dodd Investing — https://business.columbia.edu/heilbrunn Episode 332: Randolph Cohen and Michael Green — https://rationalreminder.ca/podcast/332 Books From Today’s Episode: The Success Equation — https://www.amazon.com/Success-Equation-Untangling-Business-Investing/dp/1422184234 More Than You Know — https://www.amazon.com/More-Than-You-Know-Unconventional/dp/0231143729 Expectations Investing — https://www.amazon.com/Expectations-Investing-Reading-Prices-Returns/dp/159139127X Think Twice...
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    1 hr and 5 mins
  • Episode 343 - How to Choose an Asset Allocation

    Episode 343 - How to Choose an Asset Allocation
    Feb 6 2025
    Choosing an asset allocation is a crucial investment decision, as it determines expected returns and risk exposure. During this episode, we uncover what this means, exploring topics such as why risk may not always be the best assessment method. We unpack the three factors that John Grable’s risk profiling framework considers: behavioural loss tolerance, the ability to take risk (which assesses the financial capacity to withstand losses without affecting lifestyle), and the need to take risk. Many investors sabotage their returns by selling after losses and buying after gains, and we discuss the reasons behind this. We also explore why stocks tend to become less risky over long horizons, while bonds can be vulnerable to inflation and interest rate changes, before explaining why investors should focus on compensated risks. In the aftershow, we address listener comments on absolute returns, XEQT, why we have made certain sponsorship decisions, and more. To gain a deeper understanding of risk and avoid common pitfalls that can undermine your returns, tune in today! Key Points From This Episode: (0:05:10) The critical importance of choosing an asset allocation and understanding risk. (0:08:35) How behavioural loss tolerance impacts asset allocation. (0:18:42) Psychological theory on risk tolerance and willingness to engage in financial behavior. (0:30:48) Assessing your need to take risks. (0:39:24) Why market volatility is not where the true risks lie. (0:47:42) Private credit, other portfolio alternatives, and GICs. (0:53:03) The aftershow: demystifying the AMA controversy. (1:00:20) Absolute returns, XEQT, and sponsorship on the Rational Reminder. (1:12:05) An update on Ben’s health and what he has learned from this experience. Links From Today’s Episode: Meet with PWL Capital: https://calendly.com/d/3vm-t2j-h3p Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582. Rational Reminder Website — https://rationalreminder.ca/ Rational Reminder on Instagram — https://www.instagram.com/rationalreminder/ Rational Reminder on X — https://x.com/RationalRemindRational Reminder on TikTok — www.tiktok.com/@rationalreminder Rational Reminder on YouTube — https://www.youtube.com/channel/ Rational Reminder Email — info@rationalreminder.caBenjamin Felix — https://pwlcapital.com/our-team/ Benjamin on X — https://x.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Cameron Passmore — https://pwlcapital.com/our-team/ Cameron on X — https://x.com/CameronPassmore Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/ Mark McGrath on LinkedIn — https://www.linkedin.com/in/markmcgrathcfp/ Mark McGrath on X — https://x.com/MarkMcGrathCFP Dan Bortolotti — https://pwlcapital.com/our-team/ Dan Bortolotti on LinkedIn — https://www.linkedin.com/in/dan-bortolotti-8a482310/ Canadian Couch Potato Blog — https://canadiancouchpotato.com/ Canadian Couch Potato Podcast — https://canadiancouchpotato.com/podcast/ Papers From Today’s Episode: 'The Grable and Lytton risk-tolerance scale: a 15-year retrospective’ — https://static.arnaudsylvain.fr/2017/03/The-Grable-and-Lytton-risk-tolerance-scale-15-year-retrospective.pdf
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    1 hr and 16 mins

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