Chris is calling into the show, and he has some things to tell Dave. He believes that Dave has done great work, however, he believes that Dave is stupid and arrogant. Dave shrugs off Chris’s comments and wants to know how he can help Chris, almost ignoring him.
Chris proceeds to ask if Dave believes he is smarter than Warren Buffet. Chris does not like that Dave actively pushes people into managed funds to invest their money. Instead, Chris believes in a different method: the index fund, arguing they would make more money. Dave explains that Chris believes in John C. Bogle’s idea, and they can be wonderful, but they are not a cure-all, and there is no way they will make the amount more than Chris believes.
Chris proceeds to throw numbers down on the table against Dave, who returns his data by stating there is no proof they will perform the way that Chris believes. Dave explains the managed funds he has picked to help people invest in to are shown to perform constantly and even do better than index funds.
When Dave studied millionaires, people whose total value is worth more than 1 Million, he found that 90% of them become that way outside of inheritance. How they managed this was through their 401k and investing in certain funds. Some did perform better, and others did tank, but it was all done through mutual funds over-index.
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Dave Ramsey is America’s trusted voice on money. 23 million get guidance from Dave’s radio show on Money Talk 1010, his podcasts, and videos. He’s a national best-selling author and has changed over 6 million lives with his guided money plan.
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