ABOUT THIS EPISODE
In this episode, Stig Brodersen speaks with David Fagan about Total Wealth Performance and why someone with average investment returns can still build a meaningful net worth. They discuss why saving is the first step in wealth creation, why financial independence is a matter of intention rather than luck, and how idle cash quietly becomes one of the most expensive decisions investors ever make.
IN THIS EPISODE YOU’LL LEARN:
(00:00:00) Intro
(00:04:20) Why David has been a saver ever since he blew his entire net worth on a Hot Wheels racetrack at age eight
(00:12:34) Why money decisions that look odd are often rational given someone's lived experiences
(00:13:56) Why financial independence is not luck but small habits that compound
(00:17:47) What Total Wealth Performance is, and why the return on your broker statement is not your real return
(00:22:29) How Stig thinks about financial independence
(00:29:34) The ABCs of front-end performance: availability, behavior, and configuration
(00:37:55) Why idle cash is one of the most expensive decisions an investor can make
(00:45:00) Why net worth beats portfolio returns as a scorecard during the accumulation phase
(00:54:13) How and why tax is a real expense
Disclaimer: Slight discrepancies in the timestamps may occur due to podcast platform differences.
BOOKS AND RESOURCES
- Join the exclusive The Intrinsic Value Mastermind Community.
- Check out Stig and David's free educational resource, Compounding Simplicity.
- Watch David Fagan's free educational videos.
- Read Charles Schwab's study, Does Market Timing Work?
- Listen to our interview with David Fagan about Why Simplicity Beats Complexity.
- Listen to our interview with David Fagan about Simple Investing.
- Listen to our interview with David Fagan about investing like a business owner.
- Listen to our interview with David Fagan about Buffett's favorite business book.
- Connect with David on LinkedIn or through mbf Chartered Professional Accountants.
- Stig's blog post on his portfolio and track record since 2014.
- Related books mentioned in the podcast.
- Ad-free episodes on our Premium Feed.
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