What happens when you start investing at 18, move from stock picking to evidence-based investing, and become obsessed with understanding how portfolios actually work? In this episode of Moementum Finance, I sit down with @mjpenders, a 24-year-old real estate agent and passionate investor from Pennsylvania, to talk about his investing journey, his upbringing around money, and the research-driven philosophy behind the way he invests today. Max shares how conversations with his dad about taxes, business structures and money shaped his financial thinking from a young age—and how a childhood Vanguard commercial eventually resulted in his first investment account and an early lesson in the power of compounding. We also dive into how Max went from picking individual stocks to discovering the academic and evidence-based side of investing, including the influence of Ben Felix and the research that fundamentally changed the way he thinks about portfolio construction. From there, we get into some fascinating and controversial investing topics: Why should you design a portfolio rather than simply assemble one? Can leverage actually make sense when used with a well-constructed portfolio? Why do dividend-focused investors find income so psychologically appealing? And what risks might investors be overlooking when they become too concentrated in one country or one investment approach? One of my favorite parts of this conversation is Max's honesty about investor behavior. We discuss what he thinks would actually happen if the market dropped 40%, why it's difficult to know how we'll react to a crash until we've experienced one, and why understanding our own imperfections can be just as important as understanding the academic theory behind investing. Max also shares some of his favorite investing resources, including The Missing Billionaires, Adaptive Markets, and the Flirting with Models podcast, before we step outside of finance to talk about another passion of his: competitive sailing—and the surprising lessons it can teach us about investing, planning, uncertainty and adapting when conditions change. If you're interested in evidence-based investing, portfolio construction, factor investing, leverage, dividends, risk management, behavioral finance, or simply learning how another investor thinks about building long-term wealth, I think you'll get a lot out of this conversation. 🙂 Thank you Max for coming on the show and sharing your experience with me and others. 🙏🏼 💬 QUESTION FOR YOU: If the stock market dropped 40% tomorrow, do you honestly think you'd buy more—or would you hesitate? Or perhaps sell? https://youtu.be/rVZjxJuNeQ8?si=A2N55RI_URpDPJ_T
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23 Comments
Leeaa Michelle@Robertsonaaaaa · 21d
Would keep buying at the right time , I would be more concerned about another lost decade than a 40% market correction
Gordona Powers@Sheilaaaa · 21d
If the market dropped 40% for sure id be buying whatever I can. I think a lot of people who invest would. I don't see how the current system could sustain such a drop for a long period of time. Sitting on cash waiting for such an opportunity is not the optinal approach imo.
Josh Sancheza@Smithaaaa · 21d
Provided it’s not an apocalypse, yes. If it’s an apocalyptic event, there are other things to worry about. But Im sure people that Covid was apolyptic, and it was a great time to invest!
Carl V@Saman · 21d
Those of us that have gone through recessions and volatility will add money and look for quality opportunities in those times. They become your best returns over the long term
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