In this episode, Fredrik sits down with Theodore Hicks, a registered investment advisor and author of Evidence-Based Investing. Drawing from over two decades of financial experience, including navigating the dot-com bubble and the 2008 global financial crisis, Theo breaks down why conventional financial advice and Modern Portfolio Theory often fail investors during real-market drawdowns.
KEY TAKEAWAYS
The Importance of "Sell Discipline": Everyone knows the phrase "buy low, sell high," but few practice the discipline of actually trimming winning positions to lock in gains and mitigate portfolio risk.
The Reality of Portfolio Math: Recovering from market drawdowns is asymmetric: a 50% loss requires a 100% gain just to break even. Protecting capital on the downside is far more effective than trying to catch up later.
Salespeople vs. Portfolio Managers: A large portion of the retail finance industry consists of sales professionals driven by product commissions rather than trained managers actively hedging risk.
Strategy-Based Diversification: True diversification isn't just owning different stocks; it involves diversifying entry and exit strategies, rules, and risk guardrails to withstand bear markets.
Wealth and Health are Intertwined: Accumulating financial wealth is meaningless if you lack the physical health to enjoy it, play with future generations, or pursue your life goals.
BEST MOMENTS
"We have to trim every once in a while... You actually have to have that sell discipline."
"I'm trying to give people permission to question what they hear from the news media, the financial news media, Wall Street, etc."
"The majority of the people that are managing money for retail... they're not trained portfolio managers, they're trained sales professionals."
"In order to win the poker game, you got to survive each hand."
"A smart man learns from his mistakes, but a wise man learns from others."
GUEST LINKS
Theodore Hicks
https://www.linkedin.com/in/theodore2hicks/
https://www.theodorehicks.com/
Book Evidence-Based Investing
About the Podcast
Invest in You is a global podcast where entrepreneur and investor Fredrik Sandvall shares practical ideas and conversations with founders, investors, and operators. Episodes focus on investing, entrepreneurship, and building long-term control and freedom.
Occasionally joined by his sons Ivan and Charlie, the show offers both experience-based insight and a next-generation perspective.
Listeners in 155+ countries tune in to think clearer, act smarter, and build with intent.
Community & Contact
Podcast community: https://bit.ly/4jxF94k
Fredrik Sandvall
LinkedIn: https://www.linkedin.com/in/sandvall/
Facebook: https://www.facebook.com/FredrikinLondon/
YouTube: https://www.youtube.com/@FredrikSandvall
