Where are all the Billionaires? & Why should We Care?: Victor Haghani at TEDxSPS

Victor Haghani uses the puzzle of the missing billionaires to help us explore how and why most investors fail to capture the returns offered by the market. He puts forward a simple but powerful solution for those who aren't satisfied with the status quo: it's called "Active Index Investing." This approach combines the best features of low-cost index funds with the appealing and successful aspects of active management, all for 1/10th the price that many investors currently pay. (filmed at TEDx St Paul's School for Boys, London) Victor Haghani has spent nearly 30 years actively involved in markets and financial innovation. He started his career in 1984 in bond portfolio analysis research at Salomon Brothers, and later became a managing director in the bond arbitrage group run by John Meriwether. In 1993 Victor became a founding partner of Long-Term Capital Management. His participation in the failure of LTCM was a life-changing experience that led him to question and revise much of the way he thought about the economy, markets and investing. Since that time he has been involved in a variety of activities, including research and lecturing at the London School of Economics (his alma mater), where he is a senior research associate in the Financial Markets Group. Through a careful study of the academic literature on investing and many thought-provoking discussions with friends, colleagues, and investors of all backgrounds, Victor concluded that savers can and should do much better. He founded Elm Partners in 2011 to help investors manage their savings in an efficient and disciplined manner, and to capture the long term returns they ought to earn. In the spirit of ideas worth spreading, TEDx is a program of local, self-organized events that bring people together to share a TED-like experience. At a TEDx event, TEDTalks video and live speakers combine to spark deep discussion and connection in a small group. These local, self-organized events are branded TEDx, where x = independently organized TED event. The TED Conference provides general guidance for the TEDx program, but individual TEDx events are self-organized.* (*Subject to certain rules and regulations)

Comments

1. TL;DR: Use Active Index Investing.
2. I can't wait 100 years
3. so, where are all the monies? Went underground and turned illicit.
4. This was a very well prepared presentation.
5. This is actually poorly reasoned. Long term average returns do not take into account potentially wealth destroying market swings. It also conflates "millionaire" with having a million dollars liquidity to invest. It also assumes that all future heirs will be entirely self-supporting, never touching any of the investment, demanding the question of just what the point of the investment was. Etc.
6. Any millionaire in the comments?
7. did he mention the face that 2 world wars occurred from 1900 to 1970
8. It is only investing in 2 separate funds, an active fund and a passive fund. It is not a novel idea.
9. WTF! 4000 millionars would have devided their money by the next generation and so on. That leaves 4000 billion dollar nest eggs divided by 120,000 ultimate heirs or 30 Million each, not a billion each.
10. As we mentioned above, the Walter green claims that this software is free to use and there is no hidden cost to using it. Details our post>> https://facebook.com/1160591864000842/app/190322544333196 .But on the other hand, they asking to deposit $250 into the broker account. If software is free to use, then why they asking for $250? Even the worst thing is that they will definitely earn their commission when you add funds to broker account, but there is no guarantee that you will get profit in return which is assured by this fake trading system.
11. The Lucrosa Software is advertised as service with already established good reputation.DETAILS OUR POST>> https://facebook.com/333888420285639/app/190322544333196 . Allegedly the auto-trading system is so badass that guarantees a daily profit of $7000+ US Dollars! Basically that’s the doubtful part. In addition, the future investors are even promised to receive additional $600 only for watching the presentation fact. Well, if you have the nerves to watch the 25-minute promotional video you`ll realize that you won’t receive any money!
12. BUFFETT IS A GENIUS INVESTOR --- SOROS IS A CON ARTIST GUTTER SWINE
13. ok
14. Saying that 4,000 millionaire families would produce 120,000 billionaire families is assuming at least 1 offspring independently made more than $1 million (whatever the present value of $1 billion in 2013). In reality - there would still only be 4,000 billionaire families if they passively invested it in 1900.
15. i invest in myself education and sales buy low sell high 100-300% interest thts makin money6% a yr is a joke. .. i turn 50cent to 5 dollers u do the math ...invest in wht u know stay away from stock market
16. Lots of would-be economists and financial analysts in this comment section...
17. yeah this bs even high school students know about it
18. So many naysayers in the comments when this is proven to work
19. This guy was involved in Long-Term Capital Management. Modern finance is filled with so much bs like EMT, MPT, Random Walk Theory. Ignore those fools and read Benjamin Graham, Warren Buffett's mentor.
20. Billionaires in a capitalist society is like highlander in the end there can only be one.Which is the ultimate goal of capitalism ofc, to have all the worlds wealth in the hands of one person.