From CNBC: 2025-03-28 09:27:00

Barry Ritholtz recalls the challenges of writing his first book during the 2008 financial crisis. His new book, “How Not to Invest,” uses anecdotes to highlight misconceptions in pop culture and finance. Ritholtz emphasizes the importance of avoiding bad ideas, numbers, and behaviors to become a successful investor, advocating for understanding the power of compounding. Most plays are not “Hamilton” and most restaurants are not Nobu, Ritholtz warns of the dangers of believing in easy success. He criticizes the common financial advice of saving on small expenses like a $5 latte, emphasizing the importance of looking at the bigger picture of income and expenses over time. Ryan explains that money is a tool that eliminates financial stress and provides freedom and options. He emphasizes the importance of being skeptical of financial advice and suggests investing in broad index funds for long-term success. Warren Buffett’s wealth doubling in the last seven years demonstrates the power of compounding.

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