Uploaded August 2026 | Updated September 2026, 2 weeks ago
Paul sits down with Rick Ferri — not for a debate, but for the kind of honest conversation two people can only have after spending their careers chasing the same goal from different directions.
Rick makes the case against tilting: the small cap premium largely disappeared once the research went public around 1980, and he believes value stopped working around 2006. Paul counters with Table G1b, which shows the results of blending small cap value and the S&P 500 in 10% increments from 1970 through 2025 — returns alongside the worst drawdowns each combination had to survive. Then Rick does something unexpected — he crosses to Paul's side of the table and builds a strong argument for small cap value, framing it as a way to capture the return of private companies that represent half of the economy.
Where they land is less about who's right than what it costs to be wrong. If you go down the factor road, Rick says, it's a lifetime commitment — not three years.
Also covered: lump sum versus dollar cost averaging, what an hourly advisor can do to help do-it-yourself investors implement their new portfolio, the new Trump accounts for newborns, and why VT may not be your best choice in a taxable account.
Both Paul and Rick will be at the Bogleheads Conference, November 13-15 at Green Valley Ranch Resort and Spa in Henderson, NV, near Las Vegas.
LINKS
Bogleheads Conference registration:
boglecenter.net/2026conference
Table G1b — Fine Tuning Table: S&P 500 vs. US Small Cap Value:
irp.cdn-website.com/6b78c197/files/uploaded/Table+G1b+-+Fine+Tuning+Table+-+S-P+500+vs+US+SCV+Equity+Portfolio+-+Out-Performance.pdf
Stay tuned for next week's podcast, a discussion with Chris Pedersen about this interview with Rick.
Paul sits down with Rick Ferri — not for a debate, but for the kind of honest conversation two people can only have after spending their careers chasing the same goal from different directions.
Rick makes the case against tilting: the small cap premium largely disappeared once the research went public around 1980, and he believes value stopped working around 2006. Paul counters with Table G1b, which shows the results of blending small cap value and the S&P 500 in 10% increments from 1970 through 2025 — returns alongside the worst drawdowns each combination had to survive. Then Rick does something unexpected — he crosses to Paul's side of the table and builds a strong argument for small cap value, framing it as a way to capture the return of private companies that represent half of the economy.
Where they land is less about who's right than what it costs to be wrong. If you go down the factor road, Rick says, it's a lifetime commitment — not three years.
Also covered: lump sum versus dollar cost averaging, what an hourly advisor can do to help do-it-yourself investors implement their new portfolio, the new Trump accounts for newborns, and why VT may not be your best choice in a taxable account.
Both Paul and Rick will be at the Bogleheads Conference, November 13-15 at Green Valley Ranch Resort and Spa in Henderson, NV, near Las Vegas.
LINKS
Bogleheads Conference registration:
boglecenter.net/2026conference
Table G1b — Fine Tuning Table: S&P 500 vs. US Small Cap Value:
irp.cdn-website.com/6b78c197/files/uploaded/Table+G1b+-+Fine+Tuning+Table+-+S-P+500+vs+US+SCV+Equity+Portfolio+-+Out-Performance.pdf
Stay tuned for next week's podcast, a discussion with Chris Pedersen about this interview with Rick.
