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109: Why Modern Portfolio Theory Fails Investors with Daniel Peris

By Sam Marks / Johnny FD

DANIEL PERIS, Ph.D., CFA, is Senior Vice President and Senior Portfolio Manager at Federated Investors, Inc., in Pittsburgh where he oversees $20 billion dollars in equity portfolios the firm's dividend-oriented funds. Before transitioning into asset management, Peris was a historian focuses on modern Russian history. He is the author of two prior books in investing, The Strategic Dividend Investor, and The Dividend Imperative, and the new book Back to Business. During this episode, Daniel will talk about how you can bring some common sense back to your investing. He’ll speak on some old strategies that just don’t work anymore including why Modern Portfolio theory may not be the answer. Expect to learn how to achieve higher yields including tips to managing your Index funds, Mutual funds, and SMAs. Find out if you really need a financial advisor to get the most out of your investing and how to choose one properly. Listen to the end for insight into Sam Marks and Johnny FDs percent earnings and thought on incorporating this concept into their portfolio.   Where are we: Johnny FD & Sam Marks: Chiang Mai, Thailand Daniel Peris - Pittsburg, Pennslyvania   Links: Strategicdividendinvestor.com Federatedinvestors.com ILAB 25 – Paul Merriman: 12 Investment Decisions Guaranteed to Change Your Financial Future ILAB 94 – Why We Invest, Financial Freedom, and Selecting Base Locations   Book: Getting Back to Business: Why Modern Portfolio Theory Fails Investors and How You Can Bring Common Sense to Your Portfolio   Time Stamps: 06:06 - Managing $20 billion in equity portfolios 07:45 - Being interested in modern portfolio theory 11:01 - Modern Portfolio Theory vs Efficient Market Theory 16:41 - “You don’t have to believe in mean-variance optimization, Modern Portfolio Theory, to want to be a passive investor” - Daniel Peris 19:45 - Is the Modern Portfolio Theory failing investors? 20:33 - “This idea of mean-variance optimization simply doesn’t make sense in modern investing anymore”  - Daniel Peris 25:26 - Achieving higher yield 33:08 - Managing your Index funds, Mutual funds, and SMAs 36:55 - Dividend investing and tax bracket benefits 38:44 - Do you need a financial advisor to get high yields? 48:55 - “At the end of the day what really matters… is trust” - Daniel Peris 53:29 - Mutual funds to highlight 56:50 - The superior open approach 50 years from now 01:00:52 - Cashing out your dividends & calculating earnings Keywords: If you enjoyed this episode, do us a favor and share it! Also if you haven’t’ already, please take a minute to leave us a 5-star review on iTunes and claim your bonus here! Copyright 2018. All rights reserved. Read our disclaimer here.  

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