Today’s guest is Dr. Richard Smith, the Founder of RiskSmith. With his background in mathematical theories of uncertainty combined with his own personal investing and trading experience, Richard has an acute sense of the critical role that risk and
money management play in successfully navigating the financial markets. Richard is leveling the playing field for the individual investor. He is here today to discuss risk and leveraging data to build long term wealth. Welcome to the show, Richard!
What Expert Authority World™ is saying about the show:
- These podcasts have some great nuggets!!April 14, 2023 by Jen from Fort Worth from United States
Mario has an A guest list that go out of their way to give you their best tips to be successful in your business endeavor. I’ve learned so much in a short amount of time. Highly recommend!
- Inspiring Real World and PracticalMarch 11, 2023 by SheriTraxler from United States
Love the inspiration of “hey if they can do this so can I “ And that there is practical ideas from their expertise too Also love the variety of times
- SUPER PRO production, and better contentFebruary 17, 2023 by JoshRamsey from South Africa
Hits the nail on the head, and brings practical insight while doing it!
- Enthusiasm and experienceJanuary 10, 2023 by Cfow110 from United States
Mario is an enthusiastic experienced interviewer. He creates conversations with great content but also leaves room for some whimsy with his imperfect action round questions.
- What an Enjoyable Show!December 21, 2022 by BretRidgway from United States
Mario Frachini is the consummate pro when it comes to being a podcast host. The time just flew by and the conversation was great!
- Great Show!July 22, 2022 by erseburse from United States
Always providing great content- keep it up!
- Insightful, inspiring and empowering!!May 6, 2022 by Anya Bartholomew from United States
This is a gem!! You've got to pay attention to "little" things to appreciation the power of this incredible useful information!! The more you listen, the more you love it! Try and you'll see!!
- Love love loveMay 6, 2022 by Tanyamariedube from Canada
What a great show. I loved listening to your episode with Dave Lorenzo on the 60 Second Sale. As someone who loves sales (but loathed them when I started with cold calls and cold door knocking), I loved what he said about hearing the word “no”. In sales, we are trained to look for the no’s. It makes us really good at it if we can really get into it. What you two were talking about with regard to how our limitations are i’’our minds really resonated with me. I love that because it’s a game changer when you understand that sales is just about helping people solve a massive problem and getting paid for it and then taking imperfect action, get on your feet and have fun. Thanks so much! Love this show.
- Amazing podcast!January 24, 2022 by maddie@podcastingyou from United States
This podcast is incredibly informative and empowering! Each episode is an insightful deep dive into an entrepreneurial story that highlights tenacity, innovation, and advice to help you level up in your own journey.
- INSIGHTFUL!January 18, 2022 by Mitko I. from Bulgaria
A ton of value, keep rocking!
- Great show!January 7, 2022 by Gisele_Oliveira from United States
I love this show. The host is really entertaining and the content is pure gold. This podcast became my top show. Keep up the great work, Mario!
- Insightful and wide rangingJanuary 7, 2022 by purpletom111 from United Kingdom
This is an excellent podcast for anyone looking to optimise their business. Mario is a fabulous host with brilliant questions and a relaxed, friendly demeanour. I loved Episode 261 about Growth Marketing, really useful - high product quality is the best marketing strategy out there!
- Brilliant insights from the best…December 27, 2021 by jxywvut from United States
No matter what big business mountain you are trying to summit, the EA podcast has something amazing to inspire and teach you how to start or scale your venture. I love tuning in every day to learn actionable insights from a new expert or industry. So much value to sink your teeth into. Give it a listen!
- Top Notch Quality Content for Authentic LeadersDecember 1, 2021 by dropinceo from United States
A meticulous production, a highly professional host with authentic conversation creates an amazing experience for the listener. A must listen for insights and inspiration for the Entreprener or C-Suite Leader.
- Love it!November 30, 2021 by Mariann!! from United States
It’s definitely worth your time if you are trying to stay informed.
- Actionable and InspiringOctober 29, 2021 by Ben_Cook28 from United States
I appreciate the authenticity, quality of the guests, and insights from this podcast
- Essential content for your entrepreneurial journeyOctober 17, 2021 by MCarmen Baldovi from United Kingdom
Mario’s interviews are full of valuable tips from business experts that you shouldn’t miss in your entrepreneurial journey. Listening to this podcast is being a massive help for me and I hope it is for you.
- Wealth of InformationOctober 8, 2021 by KPM D. from United States
Great interviews. Always great to have the opportunity to hear from experts in their fields and glean from their years of wisdom. Keep up the good work!
- Packed with actionable content!October 8, 2021 by mwforrester from United States
Mario has a top-notch podcast with outstanding guests! I’m able to come away with information that I can apply to my own business, to generate growth and increase my ability to provide positive impact. When you spend your time to listen to an episode of EA Effect you can be sure that you will get an amazing return on time investment.
- Powerful!September 3, 2021 by MichaelUnbroken from United States
This is the show I needed 13 years ago before I ruined my first business. I think being able to have tangible and practical insight from people who are one step ahead of you is everything congrats to Mario for an amazing show! - @MichaelUnbroken
- First Rate Host and Brilliant GuestsSeptember 3, 2021 by Wade Galt from United States
Mario is an extremely well prepared and professional host that gets the best out of his guests. He interviews fundamentally sound guests to share powerful business strategies and wisdom. Definitely worth your time to listen.
- Great show.August 28, 2021 by mdaciuk from Canada
Excellent interviews and guests. Liked the show on how to defend your reputation. “Customers, communities and critics.” Good way at looking at stakeholders. Thanks for the great content.
- Great topics - and tips!August 27, 2021 by Kate | EOFire from United States
Loving Mario’s podcast! Not only does he hit so many great topics, but his episodes are filled with tips and strategies you can actually use right now. For example, I just listened to his episode about Podmatch with Alex SanFilippo, and Mario doesn’t just read off a list of questions and move through the interview robotically - he actually has a conversation, and shares his own experiences with the power of guest podcasting and why others should be doing this to grow their own audience. Thank you, Mario! Keep up the heat!
- So glad I found this podcast!August 13, 2021 by Nate804 from United States
I’m so excited to continue jumping into episodes of this podcast. So much knowledge from so many successful business men & women. Adding this to my weekly workflow for sure!
- So much informationJuly 23, 2021 by abal31 from United States
Such a great show. So much information and helps with many areas of our business.
- 0285: Sales Driven Agency: Helping Founders Become Predictable, Sustainable and ScalableJune 28, 2021 by Mary2577 from Philippines
Thank you so much and keep on doing more great show.
- Easily One of My FavoritesMay 7, 2021 by ScottDGray from United States
I recently discovered Expert Authority Effect. It’s quickly worked it’s way onto my list of must listen podcasts. The episodes are less than an hour and packed with great information from top-level entrepreneurs.
- Priceless Content!May 7, 2021 by megan@podcastingyou from United States
Mario does such a good job covering a variety of topics. His guests offer awesome advice as well. I would recommend this show to anyone looking to learn more about entrepreneurship!
- Very helpfulMay 7, 2021 by Luke and Susie from Australia
As a business owner I love being challenged to see things a different way and be reminded of how to do thing better. This podcast has been so helpful to do that.
- Great ShowMay 6, 2021 by emj-js from United States
Mario does an excellent job being fun an entertaining while asking insightful questions to draw out the experise of his guests. Thoughtful, helpful conversations to make work and life better. Thanks!
- Smart Ways to GiftApril 26, 2021 by Michelle Kaplan from United States
I learned some key things during Mario's interview with Chelsea Martin on gifting. What stands out is how impactful direct mail really is and how important a customized presentation of your products not only creates happy customers, but also a great referral source. Thank you!
- Heart Centered SuccessApril 18, 2021 by Macnjacs from United States
Your interview with Brandon Fong was great. I appreciated the fact you started with the 3 steps, it was so valuable it really made me want to hear more. Thanks!
- Love this show!March 12, 2021 by Gisele_Oliveira from United States
This is so far my favorite podcast. It’s been my weekly dose of motivation and inspiration. Keep up the great work, Mario !
- So much value!March 7, 2021 by Loose Seeds from United States
The conversation with James, Sana and John Lee Dumas was awesome. Unique questions were asked by the hosts and JLD responded with gems that I stick right into my pocket. Thanks for this valuable info on how to up my podcasting game guys!
- Always Enjoy Mario's Interviews!March 5, 2021 by HarloB from United States
I really enjoy Mario and his shows. The Stress and Anger in the Workplace episode was great because it cut to the chase of all the issues around this topic. Great interview!
- Great PodcastMarch 5, 2021 by 11Dreamer11 from United States
Really interesting interviews that are really well done! Great listen and great for inspiration.
- InnovativeFebruary 22, 2021 by Michelle Kaplan from United States
I love Mario's energy! It captures my attention throughout his podcasts. Listenng to him and his guests, their ideas, actions, and accomplishments makes me brainstorm what's next for my business. Relevant and fresh!
- Inspiriation 7 Days A Week!February 19, 2021 by ST Rappaport | LifePix from United States
Mario doesn't miss a day. No matter what is going on, there's an episode relase. Mario is on a mission and nothing is going to stop him. He's a real model to be doing these interviews!
- An Expert on Experts!February 12, 2021 by Powerful Eric from United States
Love this show! Mario's show is a asset to podcasting. Thanks for helping others Mario!
- Now I knowJanuary 22, 2021 by Margo Lovett from United States
Mario, I see how active and generous you are in Podcast Paradise. Today, I listened to a few of your shows - episodes 1 & 59. Episode 1 brought me into the moment of prayer. You produced a show according to the Spirit. Now I know why you are so generous, able to operate from your seat of genius. Margo Lovett
- Keeping the BooksJanuary 15, 2021 by E-World from United States
Great interview with Judith keeping Net Profits as key thing to look at. Interesting point she made some owners make 30 millions but not enough Net to take a paycheck.
- Excellent podcastJanuary 12, 2021 by Atomickitten99 from United States
I’m enjoying the guest interviews. They are packed full of great nuggets! Thank you.
- Unique - Engaging - BoldJanuary 2, 2021 by Paul D Johnson from United States
As host of interveiw based The God Zone Show podcast I fournd Mario's show uniquely valuable in providing inpriation and engouragment for my work.
- Fun, insightful, and quality productionDecember 23, 2020 by koltrass from United States
Mario brings in top-notch guests for engaging conversations on a variety of topics. Moreover, his attention to technical (e.g. audio, editing) quality is obvious and makes a difference. Listen to be entertained and enlightened!
- Inspiring interviews to take the next step!December 12, 2020 by BillableWithBaby from United States
Inspiring interviews with interesting entrepreneurs inform and motivate you to take things to the next level. Always good things to learn and implement. Thank you Mario!
- Pure value, I love itDecember 4, 2020 by Jdoggg222 from United States
Mario has a way of asking the questions I am wondering as the guest is speaking. He seems to intentionally ask the questions that most benefit you as a listener. Great podcast!
- Loved the Craig Handley EpisodeNovember 13, 2020 by MHillfan from United States
Mario’s energy is infectious and Craig Handley is a character and some. But really every episode brings out the uniqueness of each guest. This pod has become one of my must listens›
- Inspiring. Informative.November 6, 2020 by SunDevil from United States
Mario is incredibly inspiring and does something few other podcast hosts can manage to do… allow his guests to actuall talk at length and answer his questions. He offers great information and I really appreciate that he is invested in what his guests have to offer as well. Other podcasts come across as an ego stroke for the host, but this podcast is truly here to help guests share their stories as well to the benefit of the listener. Worth subscribing.
- Game changerOctober 30, 2020 by Player's Handbook from United States
This podcast is informative and inspiring. I love it!
- If you are a wanna be entrepreneur look no further!October 23, 2020 by Elisa Di Napoli from United Kingdom
Great podcast full of interesting insights. The host is engaging and thoughtful and I can say I have enjoyed listening to each episode!
- Amazing Interviews not to miss!!!October 16, 2020 by Jbower1282 from United States
Consistantly uniques interviews or amazing people really making it happen.
- Mario is a great host with great questions!October 16, 2020 by alexdesigns from United States
Take a few minutes out of your day to listen to Mario. He is a super smart guy and I love the questions he asks his guests.
- A great podcast for dreamers and do-ers!October 16, 2020 by Chiquita2727 from United States
Lots of great information and inspiration for anyone who wants to turn dreams into reality. Mario brings a lot of spot-on information to this podcast.
- Great ShowOctober 9, 2020 by Palminchen from London from United Kingdom
Love the broad selection of topics for inner
- Amazing inspirational storiesOctober 9, 2020 by Nicholas Lee 18 from United Kingdom
This podcast is so good. The stories from the people sharing their stories about their struggles in life and how they overcame these struggles is just inspirational and helped me push harder when things get tough. Keep up the good work with these amazing interviews Mario.
- FantasticOctober 9, 2020 by sttoggyigctdrvy from United States
Mario goes above & beyond on his show. Lots of great information for his listeners!
- Top LearningOctober 2, 2020 by BLNT PPTT from Hungary
Love hearing these great interviews with a great host. Keep up the good work!
- Mario inspires!September 18, 2020 by CHRISTOPH - HABITFREAK from United States
These interviews are fantastic. Mario inspires with great questions that draw out great answers from his guests!
- Expert authority!September 18, 2020 by Tara Williams Phone from United States
Mario shares some amazing people on this podcast and they have some gold to share!
- Great show!September 10, 2020 by Karen @ Interview Valet from United States
Mario is an awesome podcast host! I love the FB Live interviews and the opportunity for listeners to engage in real time. The audio and video quality is spot on every time. Be sure to subscribe so you don't miss anything! You won't be sorry.
- A Podcasters Inspiration!August 14, 2020 by JamieKullman from United States
Mario has so much insight and delivers such incredible value through his show. I just started listening, but I've already learned so much from him and his wonderful interviews. Keep up the awesome work!!
- Quality professionalismAugust 6, 2020 by VirtForce from United States
I can’t say enough about how pristine and professional Mario is in his interviews. He truly wants his guests to have the best experience and recording possible. And not to mention he is fun and knows how to put people at ease in front of the camera.
- How to conquer your limiting beliefsJuly 31, 2020 by Dave4syth from United States
Listen to episode 103 an dlearn how to overcome your limiting beliefs. Great advice.
- I can’t believe how much I learned in just one episodeJuly 29, 2020 by AwesomeMontana from United States
Mario is knowledgeable, curious and able to bring great guests that deliver value that every business needs to understand! Outstanding podcast!
- Great content!July 15, 2020 by Cory Lee Leadership from United States
Mario does a great job of providing relevant information and bringing on guests to share their expertise in a variety of fields. Highly recommend his podcast!
- Fascinating interviewsJuly 10, 2020 by Bill Ringle from United States
Mario brings on accomplished guests and draws out their expertise and stories in a way that leaves me on the edge of my seat. Keep up the great work, Mario!
- Love It!June 26, 2020 by Laura Moreno Cabanillas from India
Loving this podcasts, an entrepreneur I really appreciate the energy and passion being shared to help us grow our business. Keep up the great work.
- Boost my Amazon sales!June 19, 2020 by SurvivalDad from United States
I tap Amazon as one of my sales channels and your interview with John Ghiorso was an eye-opener. Ignore at your own peril!
- Love It!June 16, 2020 by LauraMore from United States
I loved the Memorial Day episode, Mario! Thanks so much for creating this awesome podcast!
- Flawless interview styleMay 29, 2020 by GninraeL14 from United States
Mario makes everyone appear even more interesting to me. Great format and style!
- Come here for valueMay 29, 2020 by Joshua User 202! from Canada
Really appreciated this podcast for the raw, genuine interviews. Love it!
- Crisp and interesting interviewsMay 22, 2020 by Joel Goobich from United States
As someone who created one of the first podcasts dedicated to video marketing, I was very impressed by your recent episode about using video. Your interview style is crisp and interesting
- If you are in business, this podcast needs to be on your playlist.May 22, 2020 by Macstephen1 from United States
Mario has a great conversational style that helps his guests shine. This show is a must if you have an entrepreneurial spirit. It provides thought provoking content that will help any businessperson in their quest for success.
- New Subscriber here and on your YouTube ChannelMay 15, 2020 by Angela Brown Oberer from United States
Wow Mario you have a real knack for interviewing. You ask great questions and have a fun way of keeping the conversations lively and interesting. After listening to your episode with Owen Video I subscribed to your podcast and then I hunted you down on YouTube. High Five and great job!
- Very Professional & Engaging Show!May 15, 2020 by Mitche Graf from United States
Mario is extremely engaging and can hold your attention, and is a great interviewer! He has some great guests that really get into the details of running a successful business. Keep up the great work Mario!
- Great ContentMay 10, 2020 by Pilar S. from United States
Excellent! LOTS of advice from experts. The most recent episode talks about speaking–a must-listen for anyone who presents or is thinking about presenting.
- Great content!May 1, 2020 by @Mentally_Strong from United States
I really enjoy your podcast each time I listen. The content helps any entreprenur level up with they do. Keep it up and thanks for each episode.
- Professional and InformativeMay 1, 2020 by Bruce at Mindfulness Mode from Canada
Mario Fachini is an excellent interviewer and has terrific guests on the show. I highly recommend this podcast.
- Great PodcastMay 1, 2020 by Amber Fuhriman from United States
I love the topic of this podcast. The episode with Tod Lindsay is super super helpful!!
- Great find!May 1, 2020 by Reed Stiles from United States
Great message and content. Stumbled upon this due to the cool logo, stayed for the content.
- Great show and great host!May 1, 2020 by Laurapowers44 from United States
Love what Mario offers! So glad he is doing his show and providing all this helpful info! Keep them coming!
- Walks the walkMay 1, 2020 by Me15463 from United States
Mario encapsulates everything he talks about on the show. Be sure to tune in to this!
- Honest and authenticApril 17, 2020 by Deano3622 from United Kingdom
Wow, just come across this podcast. Mario is such an awesome guy. He comes across so honest and genuine. Loved the content. I honestly don’t know where you find the time?! Keep it up Mario, love how honest and real you are!
- Great and insightful!March 7, 2020 by Karty12345 from Australia
I really enjoyed this podcast, so much relevant content. Thank you!
- So much Value..!February 28, 2020 by Alex Dali Rizo from United States
Great content, I really recommend this to any Entrepreneur looking to excel in their path, Mario brings topic experts to teach and inspire your day
- Inspirational Intentional InformationFebruary 28, 2020 by 10Kforte from United States
This podcast shares the stories from people that are doing whatever it takes to rise up and help others along the way. “What Are You Made Of” is one of the many messages shared on the podcast. There are so many takeaways that are applicable to anyone. I really enjoyed listening.
- Wow!February 25, 2020 by Tyscoaching from Australia
Just listened to the 'rescue site AED Program' episode! If you love epic stories and inspirational people, this is the podcast for you!
- Motivation on TapFebruary 7, 2020 by AnthonyPGarcia from United States
Mario brings on some of the most impactful entrepreneurs to hear from. He dives into the key performance factors of their business. He extracts information very well and keeps the show flowing very smoothly. Definitely a show to subscribe to!
- Starting a MovementFebruary 7, 2020 by JustMe2say from United States
There are many areas of business and entrepreneurs have an opporunity to gain some insight with this podcast. Excellent interviews!
- Great Podcast For Entrepreneurs!February 7, 2020 by The Big Game Hunter from United States
Full of knowledgeable guests and useful information that will help you accomplish your goals in business and in life!
- Mario Truly Care About His GuestsFebruary 7, 2020 by Podcast Junkies from United States
Having met Mario and spent time with him at Podfest I can truly say that he is passionate about his show. He’s genuine and that clearly comes through in his own story and what he brings to every interview.
- Put your thinking cap on!January 27, 2020 by Cliff Duvernois from United States
This is probably one of the most information dense podcasts I’ve listened to in many moons. Each episode could easily be expanded out into 2 or 3 hours. Mario does a great job of asking the right questions to get his guests to reveal great tips, tricks and advice. Sure a lot of information can be applied to an entrepreneur but I found a lot of advice applicable to my personal life. This podcast is definitely worth my time to listen to and I’m looking forward to more episodes to come. Great job!
- Relavant for anyone!January 17, 2020 by HarloB from United States
I really enjoy Mario and his shows. The Stress and Anger in the Workplace episode was great because it cut to the chase of all the issues around this topic. Great interview!
- Mario nails it!January 17, 2020 by Mickiezada from United States
I've listened to Mario for a long time...his podcast is well produced, his guests are influencers and authentic authority, and chock full of insights and inspiration for entrepreneurs. Love it!
- Mario is the real dealJanuary 9, 2020 by jamesnewcomb.io from United States
I’ve known Mario personally and professionally for over a year now. He is genuinely interested in helping people succeed, and consistently over delivers in his interactions and valuable advice with fellow entrepreneurs, podcasters, what have you.In this era of showmen who “give value” only if they think they’ll get something in return, Mario stands out as a man among men. Listen to his show and learn what true leadership and value in the marketplace mean.
- Listening On My Entrepreneurial JourneyJanuary 3, 2020 by FromLisa2 from United States
I was surprised when I stumbled over the servant leadership that shows up in these episodes. It's collaborative. It's focused on relationships with clients versus transactions. I especially enjoyed the episode on getting clients without "selling" because it's more about genuine relationship building.
- A GiftDecember 25, 2019 by Lisa Vogt from United States
Mario uses all his talents, gifts and abilities to produce this life affirming show. It's incredible that we are able to grow our abilities and develop our talents and gifts just through subscribing and listening. Thank you Mario!
- This show is ON FIRE!December 14, 2019 by tibor.mindsethorizon from United States
Love your show Mario! Your niche is close to mine but I focus more on mindset and manifestation in a business setting. I tuned into episode #103 with Karen Brown which is dope! Keep up the great work!
- Entrepreneur Must ListenNovember 30, 2019 by HWoodwriter from United States
If you’re an entrepreneur this is a must listen show. So many inside tips and thought processes behind moving your business forward. Mario does a great job with the guests by asking the right questions at the right time. He and his guests give the information you need to grow your business and leadership skills.
- What a show!!October 26, 2019 by CWLuecke from United States
Man, do I love interviews with world-changers! Mario does an excellent job gathering the cream of the crop for his show and giving insightful interviews. Check it out!
- Loved it!October 25, 2019 by Seodrigo from United States
This interview was very enjoyable. Mario brought on a wise guest by the name of Michael Lauria. I loved the interview and Michael's perspective on the topic. He had wonderful insights and around min 31, he hit something very profound. Excited to share what I learned today with others. Way to go!
- Great listenOctober 25, 2019 by trinity3712 from United States
Good listen. Great range of guests and topics. Something here is you keep listening will help you in many areas of life and leadership b
- Great Knowledge!October 18, 2019 by Jon Vroman FRD from United States
Great show Mario! So much valuable information in one episode!
- Excellent show, very imformative!October 5, 2019 by Shaolin Soprano from United States
Mario loving the podcast bro, great content, immense value. Enjoying these interviews!!!
- Helpful Information!October 4, 2019 by The Medicare Nation from United States
Love the valuable information on these episodes! Lots of tips & tricks for every Entrepreneur to use. Kudos Mario!Diane Daniels Host of Medicare Nation
- Love Mario’s AttitudeSeptember 12, 2019 by marisaimon from United States
Mario’s heart shines through his interviews, making these fun and positive, and the people he brings on offer such a wealth of knowledge.
- Lots of Great Info!September 6, 2019 by DarlajPowell from United States
Mario provides lots of great info and advice in this 7 day a week show.
- Great Content!August 31, 2019 by LanceJohnson_ from United States
Mario does a great job of share valuable information that every entrepreneur could use and apply to their journey. Great work! 🙂
- Important information!August 31, 2019 by Allmenow from United States
Very engaging information. Mario draws out experiences and knowledge from his guests. Loved the show!
- Difference-MakerAugust 21, 2019 by Unlimited Beliefs from United States
Mario is a master at bringing out, shining a light on, and internalizing the difference-making mindset. His knowledge and experience and mission enable him to synthesize information into diamonds for all of us! What you want is accessible by taking in this show!
- Excellent InformationAugust 21, 2019 by Stallion golf from United States
Great advice and information with a wonderful blend of topics! Loved the episode with the british healthcare professional and the ideas shared on how to make the industry better.
- Motivating and valuable informationAugust 16, 2019 by Calvin Javier from United States
Great insight on mindset from business leaders and entrepreneurs making things happen. Definitely worth your attention. Will be listening and learning more!
- Good informationAugust 2, 2019 by FIRE NATION! from United States
Engaging interview with a british health pro, I was surprised to hear the similarties and the application she has for making healthcare better
- GreatnessAugust 2, 2019 by MiaSportFanatic from United States
Have had the chance to listen to one show so far but man, we should be paying for this information. Lots of greatness. Thanks for the heart to serve.
- Listen to the experts - and thrive!July 28, 2019 by The Marketing Book Podcast from United States
There's a lot of advice out there these days but, sadly, a lot (and I mean a LOT) of is from people with little to no expertise. That's not the case with this gem of a show. Listen to what the experts say and profit from the experience!
- Show is amazing!July 26, 2019 by BestMorningRoutineEver from United States
I love learning about mindset and how to master my thoughts. This show provide the tools!
- Great show!July 19, 2019 by Jefferson_79 from United States
Great information for all businesses.
- Good value!July 12, 2019 by Audrey purplele from United States
Great information that applies to any business! I really felt he provided value for my time.
- Interesting TopicJuly 6, 2019 by Real Estate Journeys Podcast from United States
Interesting topic. Great interviews. Keep up the hard work!
- Helpful Advice from ExpertsJune 14, 2019 by ichuck2 from United States
Mario talks to experts in a wide range of subject matters and asks good questions to pull out helpful advice.
- What a great show!June 14, 2019 by Christopher List from United States
Mario really brings out the best in his guests. The police dog trainer had such a great story. Can’t wait to hear more!
- Great!!!June 11, 2019 by tommye w-c from United States
Great podcast, awesome guests, incredible host!!!
- Fun & informativeJune 11, 2019 by Saoirse Sky from United States
Some people want something fun, others want something informative. This podcast gives you both!
- Great show!June 10, 2019 by CJThomas6 from United States
Very inspirational show! Appreciate the advice and thoughts shared by the host and his guests!
- Great podcastJune 10, 2019 by Rosie81200 from United States
Great podcast! Love hearing about the guests’ journeys and what they learned from them.
- Never Stop Learning!June 10, 2019 by Terri in Fairhope from United States
Tune in to this great podcast and host! You're probably really good at what you do (top of your game...an Expert Authority), but there is always more to learn...streamline processes and gain more freedom in your life. It's not always about the bottom line. This one is worth a listen!
- Amazing!June 10, 2019 by KatieHBrooks from United States
If you're looking for inspiration, tune in to listen to Mario and his top notch guests. I find that I am always much more motivated after listening to an episode of Expert Authority Effect!
- Wonderful show!June 10, 2019 by @IV-Heather Tieben from United States
Mario is a great host & puts on a wonderful show. The quality of his interview guests and entire production is impeccable, I couldn't recommend Expert Authority Effect more!
- You Will Not Be Disappointed!June 10, 2019 by Composer 1853 from United States
Mario does such a great job of engaging his guests from several different disciplines.
- The hardest working man in PodcastingJune 7, 2019 by EOFire.com from United States
Mario brings the HEAT with real energy and FIRE...don't miss the meteoric rise of this show!~ John Lee Dumas
- Great interviews and guests!May 31, 2019 by Mel Good Karma from United States
Thanks for hosting such great interview guests. Look forward to hearing more and kudos on so many a week and also videos!
- FantasticMay 31, 2019 by Jason A. Duprat from United States
Awesome podcast, going to be adding this one to my list. Interesting topics with great interviews, good sound quality.
- Enjoying!May 31, 2019 by Slordan from United Kingdom
Enjoy listening to Mario and how he opens up the conversations to ensure it’s as relevant to us as listeners!
- Nice variety and interesting topicsMay 31, 2019 by emjgreen from United States
Love the variety of topics presented here on this show. Looking forward to listening to more of Mario's show.
- Great Content! Great Interviews!May 24, 2019 by No BS Mompreneur from United States
Wow! Really enjoy listening to all these fabulous expert authorities!! Lots of valuable take aways that I can implement into my life. I will continue to listen and share with others!! A+++
- A great addition to build authority and create an impactMay 24, 2019 by Cloris Kylie from United States
A great addition to build authority and create an impact. Also, a different twist on the topic. Engaging. 5 stars!
- Filled with motivation and ideasMay 20, 2019 by Thomas O'Grady, PhD from United States
Mario does a great job interviewing and pulling the stories behind people's stories or success. Good pleasant listen. If you are in a journey of your own, these episodes will give some things to bring into your on life.
- spartancvMay 17, 2019 by spartancv from United States
Great job following your passion, your purpose and creating this podcast to help serve others! Keep up the excellent work.
- This podcast is the bombMay 10, 2019 by Posturedoc from United States
Mario always crushed it, and this podcast is another example of his amazing insights and knowledge!! Great work.
- Wow - love the video show.May 4, 2019 by Thehighenergygirl from United States
Thank you for the encouragement and tips on how to succeed on video and the repurposing idea.
- Motivating and Inspiring!May 4, 2019 by KatyJoyWells from United States
Mario brings such enthusiasm to his shows and his content is fantastic. I’m always learning new things to implement or new ways to grow, thanks Mario!
- What a great show!April 29, 2019 by Gene_HPLN from United States
Awesome podcast! Mario brings great topic, great guests, and it is very easy to listen to. I definitely recommend for anybody interested in business success!
- It's greatApril 10, 2019 by Ian Ryan from United States
Just had a chance to check out your most recent episode appreciate the great insight!Great delivery from the host & can’t wait to dig into future content.
- Love it!April 6, 2019 by Brendan @ Entrepreneurs&Coffee from United States
I love that this interview podcast doesn't feature the same old folks that everybody has on their show. Keep it up, Mario!
- Amazing!!!!March 15, 2019 by Lindsey Russo from United States
This show is so impactful! Hearing from the experts and how they take authority in their space is so amazing. Looking forward to more episodes!
- Learned what I didin't even know I neededMarch 15, 2019 by Camilla-Jean from United States
Great info. I love the Q episode because I get just quic interst snippets that may get me thinking about where my business might go.
- Fabulous Interviews!March 1, 2019 by Life&RelationshipCoach from United States
Mario does a fantastic job interviewing really interesting and successful business people who explain how they got to where they are - tips you won't want to miss when your trying to grow your business! Keep up the great work Mario! Coach Riana Milne
- A+ ShowMarch 1, 2019 by Gisele_Oliveira from United States
I love this show. It's so entertaining and I learn a lot from the interviews. I highly recommend this show if you want to level up his game as an authority.
- Inspiration, transformation, success stories!February 23, 2019 by Chabo101 from United States
The title of this review should just be enough but it is just more than that. Its life lessons, its listening to personal struggles and how they over came those struggles. Love to hear from people that change the world through their struggle and the lessons that i learn from them are just more than amazing. I love this.
- Great interviews!February 22, 2019 by AlyciaDarby.com PodcastManager from United States
These interviews are well done and his guests are prepared to give really specific insights and stratagies... great podcast, Mario!!
- Inspiring story of courageFebruary 16, 2019 by StrongHeart<3 from United States
I love that she found gratitude in her circumstances. lorie is an inspiration
- Powerful!February 15, 2019 by The Food Heals Podcast from United States
Mario's interviews cover a variety of topics and provide great value in all areas of your life! Episode 15 discusses how change is temporary and transformation is permanent which was really powerful for me. I love this message! Thank you!
- Great content!February 15, 2019 by Blakeob85 from United States
Great answers to common questions many entrepreneurs have! Thanks Mario for sharing your and your guests' insight!
- Real Actionable Tactics!February 9, 2019 by MattBMaverick from United States
What I like about Mario's podcast is that he pulls out actionable tactics from his guests that we, the listeners, can actually use. Great show!
- Great Listen!February 8, 2019 by Real Estate Investor from United States
Mario and his guests provide useful techniques to succeed in any business venture. The interview style promotes learning through real life examples of his guests. Great listen!
- Great interviews!February 8, 2019 by Matt B 1818 from United States
Love hearing these interviews and learning from people who are top in their industry. Mario is a great host and is not afraid to share his emotion!
- Love itFebruary 1, 2019 by Duffash from United States
I love hearing interviews of successful business women and taking away what I can learn from their journey. Mario is a great host! I have enjoyed what I have learned so far. Congrats on the launch of your new podcast!
- Strong, professional, enthusiastic!February 1, 2019 by pm legs from Canada
If you're looking for an interviewer who's going to take you to investigative places to help you be your best you, through your professional life, you'll love listening to Mario!
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Resources Mentioned• FREE Business Book Publishing Course • FREE Gift [ From VIP Guest ] please make sure Strong tags are used for any and all links (As you can see to the left)
• Thinking, Fast and Slow | Daniel Kahneman
• Misbehaving | Richard Thaler
• Moneyball | Michael Lewis
• Atomic Habits | James Clear
• Zurich Axioms | Max Gunther
• The Paradox of Risk | Angel Ubide
3+ Expert Authority Insights™ To Apply Now
- I believe that how you allocate your capital is part of your life. It is part of your creativity.
- Do more of what’s working and less of what’s not working.
- You want to set ambitious and aggressive expectations, but not stupid expectations.
• FREE Business Book Publishing Course Learn How to Publish Your Lead and Profit-Generating Business Book in < 8 Weeks visit: www.FREEBusinessBookPublishingCourse.com
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Wheel of Whatever™
[32:38] What is the best thing someone could invest in now?
What You’ll Learn In This Episode
Click the time stamp to jump directly to that point in the episode.
[1:11] We thank our sponsor, Free Business Book Publishing Course
[2:16] Richard’s inspiration
- Change the way people think about investing
- Helping people build their core portfolios that they hold for the positions on average for at least 12 to 18 months
- I see a problem that needs to be solved
- Create a framework and a technology where people really can express their values in the market more effectively and still set themselves up to be successful
[2:51] Richard’s advice
- One of the biggest contributors to the kind of chronic underperformance of the individual investor is overtrading and trying to do too much
- Have a target holding period of at least 12 to 18 months for those investments but it won’t take over your life
- Align it with your values but be able to think on a little longer term timeframe
[11:58] The Nobel prizes in economics have been awarded for the observation that we hate to lose
- We behave differently depending on if we’re losing on an investment or if we’re winning on an investment
- When we’re losing on an investment, you don’t want to sell
- Everybody wants to get back to breakeven
- When you are ahead on an investment, the fact that you hate to lose attaches itself to your profits
- You become risk averse when you’re winning
- Behaviorally, we have a psychological bias that makes us not be solvent as long as the markets can remain irrational
- Simple trailing stop loss alerts on stocks
- You are kind of protecting your profits as you go up calling protective stops
- Buying the same stocks, the same amount of money, just using a trailing stop loss exit strategy
[20:11] How to work in the stock market
- Training yourself to have the right set of habits that work for the system in which you’re operating
- To be risk seeking with your losers and risk averse with your winners is the wrong system for The stock market
- The stock market is a system where everybody’s trying to outguess each other
- The people who are really going to make money off that are thinking a couple steps ahead
[21:56] How to be successful in the market
- Knowing what your goal is
- Knowing what your time horizon is
- Thinking about that beforehand and having a plan and executing on that plan
[23:09] Richard’s strategy
- Hold my best stocks for three to five years
- Don’t pick out which stocks those are going to be ahead of time
- Identify 100 or 200 candidate investments that I’d feel good about investing in
- Use technology and factors
- Get into 15 or 20 stocks that are good candidates
- The ones that don’t prove themselves get ejected
- New ones get in and the ones that keep winning stay in
[29:30] You have to know what are the realistic outcomes for the timeframe that you’re working on, that you’re working in and then set your targets a little bit above those, but not stupid targets.
[32:38] Wheel of Whatever
- What is the best thing someone could invest in now?
- Their own education
[35:15] Time out to thank sponsor, Free Business Book Publishing Course
[37:01] Imperfect Action Round
- The fastest path to the profits is to be risk averse with your losers and risk seeking with your winners
- The biggest problem prospects are making is impatience and being misled by media and businesses
- The best way to maximize customer lifetime value is Deliver real value
[44:44] Thanks to our sponsor, Free Business Book Publishing Course
EA Interviews Episode 196. Inspiration, transformation, success stories, and the Imperfect Action Round seven days a week. Join Mario Fachini for today’s Expert Authority Effect Interview.
Mario Fachini [0:46]
Investing, you’re doing it with your life, you’re doing it with your health, you’re doing it with your family, but what are you doing for your wealth and your business? I’m excited to have Dr. Richard Smith here talking about investing with minimal risk and using no Nobel Prize research to take the emotion out of investing for huge gains. I’m going to bring them up right after we thank our sponsor.
SPONSOR Free Business Book Publishing Course [1:11]
Every business needs a book, including yours. Visit FreeBusinessBookPublishingCourse.com today to learn the seven steps to publish and promote your nonfiction lead and profit generating business book in eight weeks. Once again, that’s FreeBusinessBookPublishingCourse.com.
Mario Fachini [1:26]
Here he is, ladies and gentlemen, Dr. Richard Smith. Richard, how are you feeling today?
Dr. Richard Smith [1:31]
I’m doing great, Mario. It’s great to be here. I loved your intro. I love that you connect investing to a bigger picture than just the stock market.
Mario Fachini [1:43]
Well, thank you. I appreciate that. Usually, I have to wait until the behind the scenes afterwards for people to say they enjoyed it. But, sincerely, thank you. I appreciate that. I want to just dive right into it. I mean, investing is, depending on who you ask, some people think it’s sexy and it’s fun. And others think it’s the most boring thing in the world. And why did you want to get into it? And how do you make it sexy and fun and not boring? Because I know there’s a lot of upside if you know what the heck you’re doing with it, would you agree?
Dr. Richard Smith [2:16]
I think there is. And what I’m really inspired to do is kind of change the way people think about investing. So that’s why I love that you kind of connected it to what you’re doing in your own business, what you’re doing with your family, what you’re doing with your education. Because I think that most people approach the financial markets a little bit too much like a game, you know, or conversely, exclusively like a business. So those are the people who find it really, you know, boring. You’re just treating it exclusively like a business. And then the people that are treating it like a game or like going to Las Vegas –
Mario Fachini [2:51]
Oh, you can say gambling.
Dr. Richard Smith [2:51]
– that’s sexy, but it just doesn’t work. You know, Robin Hood is bringing a lot of people into the markets right now, young people, and I think that’s phenomenal. I hope that they stick around for a while rather than just get kind of drawn in by the sexiness of it. And they got their whole lives to make this incredible wealth building mechanism work for them. And they just need to think in a little longer time horizon. So I think, how do you make it sexy and boring at the same time? I think that’s the trick. One of the biggest contributors to the kind of chronic underperformance of the individual investor is overtrading and trying to do too much.
Mario Fachini [3:47]
How would you define that? Because I’ve heard that before, but does that mean ten times a day, ten times a week, ten times a month, 100 times? I mean, how would you define the overtrading?
Dr. Richard Smith [3:59]
For me, my core system is really about helping people build their core portfolios that they hold for the positions on average for at least 12 to 18 months. And I think that’s actually a sweet spot for individuals because if you’re trying to do day trading, it’s really kind of like jumping into the MMA octagon when you really haven’t even been to the gym and think that you’re going to survive there. You might do okay for a little while until the big guys come in and put you down on the mat. So I think 12 to 18 months holding period, that definitely puts you in the minority. And that can still be sexy and fun, but it’s not overtrading. I think, if you want to do shorter timeframes in that, you really got to be prepared to put a lot of your life energy into the markets. But if you’re willing to build a portfolio of 15 to 20 core investments, and have a target holding period of at least 12 to 18 months for those investments, it can be very sexy, it can be very creative, it can be very individualistic. But it also won’t take over your life.
Mario Fachini [5:23]
So I just want to put a disclaimer here, nothing being said is – what do we have to say? Check with your attorney. None of this is actual advice. I do want to say it and I’m not completely joking, but I was about to ask you something. And I go, I should probably put a disclaimer here first. The question was, when you’re talking 12 to 18 months in holding, what are some of the best areas you should get into in your portfolio? And, again, I know it’s not actual advice and all the legal stuff. But I also wanted to ask, does it depend on the person? Should you go towards your passion? Or should you just focus on the profits? Because you can invest in something and it might not be making a ton of money, but you’re just excited about it. Is that a good or bad thing?
Dr. Richard Smith [6:10]
I think it’s a great thing. One of the reasons I’m in this business is because I see a problem that needs to be solved and I think that there’s way too much herd mentality that goes on in the financial markets. And of course, you see that in the story stocks that everybody’s paying attention to that anytime a story comes out in the media, you’re guaranteed to get some reads if you’re talking about Tesla or TikTok or, you know, all the story stocks that are in the news at any given time. And then ETFs and indexing and everybody being in the exact same stocks, you know, to me, that’s not the American way. People with capital or people who want to have capital, when you are investing that capital, it’s a serious thing. You are turning over your life’s energy, in a way, to an enterprise, that, yeah, you want it to be successful in a passive way, because you’re not in there running it yourself. But it kind of matters where you put your capital. And I think investing is a lot more engaging This is how you kind of make it sexy longer term, is to align it with your values but be able to think on a little longer term timeframe. So my work is all about helping people have a systematic way to engage in the financial markets, where you really can kind of put some of your own – you can use tools and technology to make sure that you kind of hold your own against everybody and you don’t make any terrible mistakes. But, ultimately, I believe in people. I believe in individuals. And I believe that how you allocate your capital is part of your life. It is part of your creativity. And I think not enough people think about investing that way. And so that’s really what I’m inspired to do is kind of create a framework and a technology where people really can express their values in the market more effectively, and still, you know, set themselves up to be successful.
Mario Fachini [8:17]
And I’m glad you’re bringing this up, because it seems like people just get drawn into how can I make fast money, this, that, the other thing? And I know there’s software’s out there and people out there who are doing micro trades, hundreds of transactions a second, and it’s just all about the calculations and algorithms. But I also know that when it originally started and I’m sure – I don’t know the percentage, but I know there’s companies still out there that you put ten years into a business, you go, “Well, let’s make it go public.” The intent for 100 people to just hop on board and see if they can make a couple of bucks after everything you’ve put into it, it really is let’s raise capital so we can take it to the next level and get people who want to support us. I kind of equate it like to a birthday party, are you going to invite 1,000 people, and 980 of them? Maybe 920, because we want it to be a good party, or maybe not – whatever. There’s going to be 100 people there.
Dr. Richard Smith [9:18]
This is actually one of the reasons I was excited to come on your show, because I think your audience kind of understands business better than a lot of audiences. Because you do have an entrepreneurial background yourself and I think a lot of the people that you talk to are entrepreneurs. And I think that people need to think about investing in a similar way. At least, I think there’s a missed opportunity here.
Mario Fachini [9:46]
You want the right people backing you, not just running algorithms and stuff.
Dr. Richard Smith [9:52]
Exactly. And I think algorithms definitely help to kind of help you do risk management, keeping from blowing yourself up. And we can talk about that. That’s where some of the Nobel Prize winning research comes in. But, ultimately, I think there’s an opportunity for people to really understand what they’re investing in better, to express their values better, and still be successful, and not just have to kind of follow the machine.
Mario Fachini [10:19]
I would like to dive into that, because I’ve thought about it before. Like, would I ever want to take my company public? Or would I always want to keep it private? And I know, there’s pros and cons of both. But this really is for me. Is there a way you can only let certain people invest in the company? Or is the whole point of going public is it’s public?
Dr. Richard Smith [10:44]
I mean, when you go public, it’s public.
Mario Fachini [10:49]
You generally don’t always give everyone an invite to the party.
Dr. Richard Smith [10:52]
Yeah. When you go public, it’s public. You’re trying to raise capital at a very high level there. And you will have large shareholders, of course, that will be influential. And the rest, you know, most of the other shareholders will not have any influence. But it is –
Mario Fachini [11:12]
Is that when you’re talking about the Class A and you know, the people who invested before it went public and –
Dr. Richard Smith [11:18]
And people that acquire your shares, businesses, large institutions, pension funds, et cetera.
Mario Fachini [11:24]
Excellent. So let’s get some tangible steps. Because, yes, Expert Authority World is entrepreneurs and they’re already successful. It’s not beginners. They’re looking to go to that next level that you’re already at. And they just need some guidance. Let’s do three, what are the top three things you could say if you’re looking to do investing seriously? You already said a little bit long term, 12 to 18 months. But is there a three to five year mindset or ten year mindset you should have?
Dr. Richard Smith [11:58]
Absolutely. Absolutely. So let me take a step back for a minute and just talk about one of the most important mindsets that you need to have. And this is where the Nobel Prize winning research comes in. So two Nobel prizes in economics have been awarded for the shocking observation that – drumroll please – we hate to lose.
Mario Fachini [12:21]
I’m sorry I was drumming. Say it again.
Dr. Richard Smith [12:23]
We hate to lose. Do you hate to lose? I hate to lose. But the rub is that, we behave differently depending on if we’re losing on an investment or if we’re winning on an investment. So Daniel Kahneman – ever heard of him? – he wrote Thinking, Fast and Slow, a popular book out right now. Richard Thaler, more recently, he wrote a book called Misbehaving. Michael Lewis, writer of Moneyball, he was writing about Kahneman and his early colleague diversity. And what they found out was that, you know, when we’re losing on an investment, when you buy a stock and it goes down, you don’t want to sell. Because to sell, in your mind, means that you lost. And so you hold on to the stocks that are going down in the hope that someday they’re going to get back to breakeven. That’s what Richard Thaler got his Nobel Prize for, showing that everybody wants to get back to breakeven. So when you’re losing, you are risk seeking. You’re wanting to take on more risk. You will double down on the stock. You will triple down on the stock. You’ll turn a short term trade into a long term investment. Anything but sell the stock, because that means you lost and we hate to lose. The problem is, when you are ahead on an investment, the fact that you hate to lose attaches itself to your profits. And you become fearful of losing your profits. So you become risk averse when you’re winning. You tighten up. You loosen up when you’re losing and you tighten up when you’re winning. Now, couple that with the fact that the markets have momentum, it’s the only thing that the technicians and the academics agree on. Things that are going up tend to keep going up and things that are going down tend to keep going down. And every once in a while the market just you know, completely defies logic. John Maynard Keynes famously said, the market can remain irrational longer than you can remain solvent. So sometimes markets just go nuts or individual stocks go nuts. And so behaviorally, we have a psychological bias that makes us not be solvent as long as the markets can remain irrational. But we don’t have the corresponding profit behavior to let our profits go nuts and get away from us in ways that we never thought possible. So we’ll let our losers get away from us in ways we never thought possible. But we don’t let our winners ever get away from us in ways we never thought possible. So that is really important to understand. I think it’s responsible for the vast majority of why individuals don’t succeed in the markets. And I think it’s one of the things that professionals really understand better than all the individuals that aspire to succeed in the markets. And I think it’s something that not just applies to the markets, it applies to life, too.
Mario Fachini [15:39]
Dr. Richard Smith [15:41]
Is that resonating with you?
Mario Fachini [15:42]
That is absolutely resonating. And I know I’m not the only one. Do you have any tips on how to not have that emotional attachment or trick your own subconscious, because, obviously, if you’re losing money and I’m not even referring to putting call options but you want to hedge your bet. And if you’re losing it, you want to dump it before you lose ten times too much in the hopes that in a decade it levels back out. And maybe it will. Maybe for someone that makes sense. But conversely, if you’re profiting, I want to examine more how do you turn those profits and go to what you were saying the point where you can’t comprehend it, instead of hanging on and preventing it from happening.
Dr. Richard Smith [16:28]
I started a service in 2005 called TradeStops.com. I recently exited that business and the partners I was working with took it over. But we offered simple trailing stop loss alerts on stocks. And this is how I discovered this. So a trailing stop loss, just in case somebody in your audience doesn’t know what that is, if you buy a stock at $100 and you are using a 25 percent trailing stop loss. Then initially, if it doesn’t go up another tick, it just goes straight down from 100 bucks, you’re going to sell if it hits 75 bucks. But as your highest point of profit increases, so if you get up to $200 a share, let’s say, you got to double. Now, your stop loss is 25 percent below your highest point of profit, so at $150. So you are kind of protecting your profits as you go up calling protective stops. So what that does is it makes you risk averse with your losers and risk seeking with your winners. So I was back testing all these people’s portfolios, including professional newsletter writers and professional investors and the guy that I actually learned about trailing stops from – you know, taught me about them. I applied them to my own portfolio. I started investing in like ’99. And my portfolio was up 300 percent in about 18 months. And then it was back down to where I started in about two months after the dot com bust. And I went back and back tested a 25 percent trailing stop strategy on my own decisions over those 18 months. And I would have gotten out, you know, instead of giving back my 300 percent gains, I would have gotten out with 150 percent gains with really no emotion and no stress. Buying the same stocks, the same amount of money, just using a trailing stop loss exit strategy. So I mean, it can be that simple. So I back tested the gentleman who I actually learned about this strategy from, all of his trades, and I knew he was using trailing stops. And he was using trailing stops to limit his losses, but he was getting out of his winners early. And so when you used that system to stay in your winners until they hit the trailing stop, like I bought Tesla at 420 bucks back in March when the market crashed. And then it shot up to, like 1,000 bucks in a month. And it was really hard to not sell it at that point, because it was like, “Oh, it’s up so much in a month. How could it go up more?” And then two months later, it was at at $1,800. So sometimes the markets just go nuts. Individual stocks go nuts. And so even a simple protective trailing stop strategy can make be risk averse with your losers, take rational losses, and be risk seeking with your winners, what I call, irrational profits. This is not easy to do. I can tell you how to do it. In fact, I am telling you how to do it. But I’m telling you that even though it’s simple, it’s not easy. You do have to train yourself.
Mario Fachini [19:59]
Create a habit with it.
Dr. Richard Smith [20:00]
You got to create a habit with it. Absolutely. So I’m a big fan of habit technology. Have you read Atomic Habits by James Clear?
Mario Fachini [20:08]
It’s on my list. I just heard about it from another guest.
Dr. Richard Smith [20:11]
Great book. Absolutely. It is about behavior. It’s about training yourself to have the right set of habits that work for the system in which you’re operating. So to be risk seeking with your losers and risk averse with your winners is the wrong system for the stock market. That’s not how it works. It might work in a business where you’re, you know, selling t shirts or something. But it doesn’t work in the stock market. In part, because the stock market is a system where everybody’s trying to outguess each other. It’s kind of an anticipatory system, as we say in the complexity science world. And so the way it works is counterintuitive, because everybody knows kind of what the majority of people are thinking and what they’re going to do. And the people who are really going to make money off that, especially in the short term, are thinking a couple steps ahead. So that’s kind of sentiment or contrarian approaches to investing. So I hope that helps and gives you a little bit of practical advice. But, also, just really understanding that because we hate to lose and that we’re risk seeking when we’re losing, we want to take on more risk to try to get back to breakeven, and then we’re risk averse when we’re winning, want to take those profits off the table. And you got to flip that. You got to flip it on its head. And even a simple 25 percent trailing stop loss strategy, if you’re trying to hold your stocks for at least 12 months or more, that’ll do it for you. It’s that simple.
Mario Fachini [21:51]
Would you ever advise a 15 percent or 40 percent?
Dr. Richard Smith [21:56]
Yeah. So what I did was I developed some algorithms that use volatility to set an optimal stop loss level depending on the stock. So with a stock like Walmart or Johnson and Johnson, yeah, 15 percent to hold that stock for a year or more is is perfectly adequate. On Tesla and Twitter, no way. That stock can move 15 percent in a week. It can move 15 percent in day. So that’s not wide enough, if you want to stay in for, you know, 12, 18 months or more. So part of really being successful is knowing what your goal is and what your time horizon is, and thinking about that beforehand and having a plan and executing on that plan. And so those are really important questions that people need to have answers to before they put their life force, you know, their hard earned capital into the markets.
Mario Fachini [22:55]
Now, I have a couple questions with the three and five year plus investing? Do you treat those very similar just for longer periods of time? Or are those a totally different strategy that you advise?
Dr. Richard Smith [23:09]
So my goal is to hold my best stocks for three to five years. But I don’t pick out what those stocks are, which stocks those are going to be ahead of time. So I take the approach of I want to identify 100 or 200 candidate investments that I’d feel good about investing in. That’s where the kind of the personal values piece comes in. And then I want to use technology and factors in order to let those stocks kind of sift through a process over time and end up with the most money in the ones that are going to be winners over a three to five year period. So that way, it still has my kind of imprint of what I care about, what I value, what I want to put my money in, yet I’m using well-established market factors to kind of sift through those stocks over time and end up with 15 or so of the absolute best ones in my portfolio, with, hopefully, a longer and longer average holding period on those stocks.
Mario Fachini [24:19]
How long do you test them out for? Do you test for the 12 to 18 months? Or can you do it in six or 12 before you identify which ones you want to hold for three to five years?
Dr. Richard Smith [24:30]
I mean, w when I develop algorithms, I back test those algorithms over, you know, at least a 20 year period because you want to see different market conditions. And I’m not sure exactly I understand your question, but you can’t know ahead of time which ones are going to be the three to five year winners.
Mario Fachini [24:59]
I was asking about the, I guess, I’ll call it an incubation period. Do you always do at least 12 months of watching something before you identify you made the top 10 or 20 out of those 100?
Dr. Richard Smith [25:10]
No. No. My process is to, you know, get into 15 or 20 stocks that I think are good candidates. And then the ones that don’t prove themselves get ejected. New ones get in and the ones that keep winning stay in. So it’s sort of like you’re building up a stable of racecars or horses. And, you know, you’re keeping the ones that are winning. And the ones that don’t pass the test, they go out and you add some new ones in from your stable.
Mario Fachini [25:39]
It’s also reminded me a lot of marketing, because marketing is a test in advertising with paid ads. You know, a lot of people they’re bashful when they get in. They don’t want to put enough. They don’t want to do the testing. They don’t want to get the data. They don’t want to wait. Sound familiar?
Dr. Richard Smith [25:53]
Mario Fachini [25:55]
And the real key is you do dozens and dozens and dozens of ads, quickly figure out which headlines are working, which images, which this, which that, and you figure out what’s working, then you scale it up. Instead of running two ads and just thinking both of them are going to be bad. Almost always the ones you think are going to work don’t. And the ones you weren’t even looking at somehow do.
Dr. Richard Smith [26:18]
Exactly. And I think you can take a similar approach to investing.
Mario Fachini [26:23]
Yeah. Patience and creating a good habit.
Dr. Richard Smith [26:26]
And using data, for sure. If you know what – do more of what’s working and less of what’s not working.
Mario Fachini [26:33]
That’s a good approach, because it doesn’t lie. And sometimes it might just entertain you. You go, “Huh. Really? Okay.”
Dr. Richard Smith [26:38]
And we do lie to ourselves quite readily. So you do need some data to help you know when you’re telling yourself a fib and when you’re too attached to your investments.
Mario Fachini [26:52]
I will say the biggest one I have to train people on when we’re talking about advertising is at least 30, sometimes 40 to 60, days of testing just to get data. And most people don’t want to invest what they’re willing to ask in the offer. If you have a 5, 10, 20 grand offer, they’re like, “Well, I got 200 bucks for ads.” It’s like you want someone to invest 10 grand to 20 grand with you, but you don’t want to invest it to figure this out. It’s the [unintelligible] [00:27:23]. So I was excited to know the psychology behind with everything you’re talking about, because it’s fun. And once you understand it, it’s not fear. You don’t need to be afraid of it. Everyone has a subconscious and you can overpower it.
Dr. Richard Smith [27:39]
Yes. Absolutely. And a lot of it is about having the right expectations. You want to set ambitious and aggressive expectations, but not stupid expectations. You know, like $200 in ads to sell a $10,000 course. It’s just not going to happen. It might happen like getting struck by lightning might happen. But that’s not a sustainable business strategy. Look, I’m finishing up my PhD in 1999. I’m about to become a doctor of uncertainty. So I know a thing or two about the mathematics of uncertainty at this point. And I’m at an investing conference and one speaker is up, and he’s talking about how you can make 12 to 15 percent a year with only a couple hours of work a month. And then the next speaker gets up, and he says who wants to make 12 to 15 percent a year? Who wants to make 100 percent a year trading options? And, literally, keep this in mind, I’m pretty numerically literate at this point. I hear myself say, I have to wait a year to make 100 percent? Like, I want to make 100 percent next month. Now, this is just stupid. It’s stupid. You might make 100 percent in a month, but that will be like getting struck by lightning. Or maybe the market is going nuts and you happen to get into one or two stocks that fulfill your fantasy. But it’s not a sustainable long term wealth building experience. You will give all that back and more.
Mario Fachini [29:27]
You’re up today but it’s not going to last.
Dr. Richard Smith [29:30]
No, it won’t last. Meanwhile, if you set a goal above 12 to 15 percent, let’s say you want to do 18 to 20 percent a year. I think that’s totally achievable if you have a good process, and you’re clear about what you’re doing, and you’re willing to put the time into it, and you’re willing to be disciplined. That’s not a crazy number, you know, 15 to 20 percent a year. That’s what I think most people should be aiming for as individuals investors in the markets. And some years you’ll get lucky and you’ll do 30, 40, 50 percent. Other years, you know, you’ll end up with loss. But you have to know what are the realistic outcomes for the timeframe that you’re working on, that you’re working in and then set your targets a little bit above those, but not stupid targets. You know, not stupid targets.
Mario Fachini [30:28]
I got one more question for you – well, I got a lot more, but one more for this part and it deals with the dividends. Is there a point where you don’t want to cash in on the dividends too early? Do you ever want to pull them? Or what is the good timing for that? Should it only be a certain percentage you take out while it continues to grow?
Dr. Richard Smith [30:50]
So I think going back to one of your earlier questions about, you know, what about a ten year strategy. If you want to be in the markets for, your time horizon is ten years or more, I think, a dividend reinvestment strategy, where you’re actually having the dividends, like you can even do this direct with some bigger companies where you call them and they have a program where you can buy stock through them. And then they’ll automatically buy more stock with the dividends. So that’s a great long term strategy. And then in terms of what you do with the dividends, if you’re not reinvesting them, it’s really a personal question, again, about what is your goal? What are you in this for? Do you need income? Are you getting the dividends for income? If so, then you need to take that money as income. But if you don’t need it as income, then you absolutely should reinvest that money. And maybe it’s not automatically in the same stock that issued the dividend. But it’s going into your brokerage account. You’re leaving it there. And you’re building up cash. And then you have cash available for when there’s a new opportunity.
Mario Fachini [32:06]
Excellent. Well, thank you for sharing that with us. We’re going to do one fun thing and this is called the Wheel of Whatever. And it’s always the right question at the right time.
Dr. Richard Smith [32:22]
All right. I like it.
Mario Fachini [32:25]
There it is, look at that question. For you, it is, what is the best thing someone could invest in now?
Dr. Richard Smith [32:38]
I think that the best thing somebody that can invest in now is their own education. And so all the people that are out there that are getting interested in the markets right now, that have time on their hands, that are getting into the fascination with markets, they are fascinating. It is wonderful. It really is. And you can build tremendous wealth. You need to take a step back. Slow down a little bit. Take the money that you would have put into a stock. Read a great book. And make sure you’re in this for the long haul. And that you have the right expectations and that you hit out of the park.
Mario Fachini [33:25]
Excellent. Do you have a timeframe? Should you learn for a couple of months, six months, 12 months? I agree 100 percent, I tell everyone the same thing for marketing and book publishing and different stuff. There is a point where you have to take action though. How long would you say is a good amount of time?
Dr. Richard Smith [33:44]
I think an initial three months of educational effort. And then you can gradually step your way into your full capital allocation. So say, you know, maybe take 20 percent of the amount of money you ultimately want to invest in the market after your three months of education, you put it in. And then two months later, you put in another 10 percent. Two months later, another 10 percent. So you’re gradually walking in your capital –
Mario Fachini [34:16]
Over the first year?
Dr. Richard Smith [34:18]
Over the first year. Exactly. So you will make mistakes, you know. But you do need to be in the markets in order to really test yourself. Paper trading is not good enough. You will not really go through the emotional ups and downs that you ultimately will have to deal with as a human being in the markets with your money on the table. So, yes, get some skin in the game. You need that as part of your education. But don’t put all your skin in the game right out of the gate. Put some skin in the game, see how you’re doing. Put more skin in the game, continue to educate yourself and, I think, over a year period of time If you do that, you’ll be setting yourself up for some tremendous long term success. And you won’t really miss anything. You got decades.
Mario Fachini [35:09]
Well, I appreciate you for sharing that. We’re going to thank our sponsor and come back for the Imperfect Action Round.
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Mario Fachini [36:46]
And we are back with the Imperfect Action Round. Richard, are you ready to take imperfect action?
Dr. Richard Smith [36:52]
Mario Fachini [36:53]
Three questions, 60-second answers. The first one is, what is the fastest path to the profits?
Dr. Richard Smith [37:01]
The fastest path to the profits is to be risk averse with your losers and risk seeking with your winners. Have I not made that clear enough yet?
Mario Fachini [37:11]
I did catch that just once or twice.
Dr. Richard Smith [37:13]
So let your profits get away from you to the upside. And don’t let your losers get away from you from the downside. I have a few seconds left, do you know what it takes to recover from a 90 percent loss?
Mario Fachini [37:25]
Dr. Richard Smith [37:26]
Percentage gain. You have to have 1,000 percent gain to offset a 90 percent loss. You buy a stock at 100 bucks and it goes down to 10, that’s a 90 percent loss. To get from 10 back to 100, you don’t need 90 percent gain. You need a 10X on that stock. You need 1,000 percent gain. So don’t let your losers get away from you, because it’s hard to get 1,000 percent gains given our psychological biases, you know, our inability to tolerate big profits.
Mario Fachini [37:58]
Wow. I knew some stats with profits with goods and services and marketing. Like, if you have $100 product and you reduce the price to get – you know, the theory is, I’ll reduce the price 10 or 20 percent, but you need exponentially more people buying it to offset that little bit. It’s almost never worth it. And it sounds very similar but much worse than this scenario. All right. Number two, what’s the biggest problem you see your prospects making and the fastest way for them to fix it?
Dr. Richard Smith [38:30]
It’s really just impatience and, also, being misled by the media and by all of the businesses and mechanisms in the markets that don’t make money when you make money. They make money off of things like you trading. So that’s one of the biggest issues I have with a lot of the business models in the retail space. You know, they make money off of you trading. And overtrading is not good for you. You will not make money if you are constantly churning your account. The only people that will make money are your brokers. And so, have a little bit of patience. Be in this for the longer duration. And turn off the T.V., especially during market hours.
Mario Fachini [39:23]
Excellent. Number three, what is the best way to maximize customer lifetime value?
Dr. Richard Smith [39:30]
Deliver real value. So I think, especially in the financial services, there’s a lot of mistrust, and rightfully so. And I think that people are hungry for real value and real values in our world today. And getting a little tired of, I would say, the value lists. The distractions. And so a way to build trust with your customers and to create real long term value is to be authentic, honest, and deliver real value. And then your customers will stay with you. Like, brand matters more than ever these days.
Mario Fachini [40:24]
Because that’s also the reputation.
Dr. Richard Smith [40:26]
Its reputation. And it’s down to the individual level now. It used to be, I remember people saying to me, brand is only for Johnson and Johnson and Pepsi. The rest of us shouldn’t worry about brand. But that’s not true anymore. Reputation is brand. And people know it. It’s not hard to tell. And if you don’t deliver real value to your customers, they’re not going to stick with you. And so the best way to maximize lifetime customer value is to deliver real value, build real trust. And, again, you’re in it for the long haul. We got to slow things down a little bit. We got to think a little longer term. Everything’s been pushed down to the long term.
Mario Fachini [41:09]
I agree. I love planning stuff out at least three to five years, but aiming for that ten year mark, because there’s that quote by someone smarter than me that says, most people overestimate what they can do in a year. And they underestimate what they can do in ten. It’s super true pretty much everything.
Dr. Richard Smith [41:29]
And you know what’s really fun and really satisfying, Mario?
Mario Fachini [41:33]
Dr. Richard Smith [41:34]
Real success over a ten year horizon.
Mario Fachini [41:38]
That wasn’t a fluke that you know you create it and you can create it again.
Dr. Richard Smith [41:43]
No. Like, I worked my butt off in my business, you know, for 15 years. It was 15 years of overnight success. It was really gratifying. And it changed my life. No one trade ever changed my life on a short term timeframe. So, definitely, look out a little longer. You’ll put yourself in the minority of market participants. And you’ll really put yourself above, eventually. It will take a little time. And it will seem like you’re missing out on some things, but you’re not. And what’s really satisfying is winning big time.
Mario Fachini [42:22]
Well, that sounds good. And I appreciate you for sharing that. What are some books that you could recommend to Expert Authority World?
Dr. Richard Smith [42:30]
One that I came across recently, it’s not a hard read but it’s a great book, it’s called Zurich Axioms. Zurich, Switzerland, you know? And written by a guy who is Swiss. And it’s all about risk management and risk taking. And really not a lot of math, more about kind of qualities of it. And I’m working on a book myself called the Risk Paradox. And what I see is that people are so risk averse that they end up actually creating the very risks that they’re trying to avoid. So, you know, you have to take risk to be successful. You just do. Otherwise, you put your money under the mattress, you’re going to get beat by inflation.
Mario Fachini [43:24]
But you got to do it controlled, like you’re saying, don’t be crazy with it and have that 90 percent loss.
Dr. Richard Smith [43:29]
Exactly. You got to learn how to take risk and be in control. And I think the book, The Zurich Axioms, which is one that most people probably haven’t heard of, but I just came across it recently myself in spite of being at this for 20 years. And then I talked to a friend of mine, who’s a 60 year legend in the business, Larry Williams, and, and he said, “Oh, my God, that’s my favorite book.”
Mario Fachini [43:55]
Well, I appreciate that great recommendation. Thank you so much for sharing with Expert Authority World. Where would you like people to learn more?
Dr. Richard Smith [44:04]
At RichardMSmith.com. So I’m working on new technology as we speak that I hope to be out by the end of the year. I’m also working on a book. And the best place to keep abreast of all the new developments is at my personal website. RichardMSmith.com.
Mario Fachini [44:25]
Excellent. Well, I’ll make sure that’s on the show notes page on EAInterviews.com. Thank you again. It has been enlightening and it’s been a pleasure.
Dr. Richard Smith [44:35]
Thank you, Mario. I really enjoyed it.
Mario Fachini [44:37]
All right. Expert Authority World, we have another great episode here today. See you tomorrow. Have a great day. And God bless.
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Mario Fachini [45:18]
Hey, thanks for listening to today’s episode. I hope you got a lot out of it. I know I sure did. If you haven’t done so already, I invite you to subscribe to the show. And also be sure to check out EAInterviews.com for complete show notes, the full interview video experience, links to the resources we mentioned, and more. Have a blessed day and I’ll see you tomorrow.
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