Robert Schiller, Warren Buffet, Schiller P E discussed on Invested: The Rule #1 Podcast

Automatic TRANSCRIPT

To invest Warren buffet style based on a conversation going on here between my daughter, and I might lovely lovely daughter. Who thinks I'm full of it. Sometimes. Not really true anybody. That's listened to these podcasts. No. I just need a little clarification. That's awesome little clarification. And and we're getting there. I think it's it's been a really really interesting couple years here. And we have a lot of podcasts. If you guys want to review them if you're just new to this. They're out there, and they're really good to work through. There's a lot of investing education there in the school of investing founded, essentially by Ben Graham, Warren buffet, and Charlie Munger and added to you know, to great degree actually by Charlie Munger, who is the one who encouraged Warren to be looking for wonderful businesses and buy them on sale. And that's really the essence of investing here that we're trying to to go through and learn and study and the real world the try to find great companies that are on sale and man alive. Are we have in market that is wild market the market? Dropped ten to one for ten. Fifteen percent dependent which market index you'll get and is working its way back up, and we've got the Trump effect going and some people say it's real and some people say it's just an illusion. It's gonna crumble and we're in our tenth year of of no recession, and that's the longest in American history since they've been keeping track of this. And we are at a Schiller P E, which we've talked about a number of times that still way up there and by way up there. I mean in the last one hundred forty years, it's only been where it is now three other times and each case so long now add has but in in all these previous cases that we entered into a depression or recession and giant stock market drops in it just hasn't happened yet. Also when you invest in a broad market mutual fund, which is what everybody tells you to do, of course in your 4._0._1._K's by mutual funds and indexes. The Schiller P E done by Robert Schiller, Yale suggest rather strongly that if you do that in this market, you'll have a twenty year return substantially less than five percent per year. And that one more time you mean, like if you invest today right now based on Schiller anytime, the Schiller is above about twenty four twenty nine thirty right now anytime in the last one hundred forty years that you did that in the big that first year you had a twenty year rate of return by investing in the index s and p five hundred of below five percent. And some of those returns were negative or zero remaining was that gigantic dang..

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