What happens when the market changes — and you don’t? Can sticking to your strategy be the biggest risk of all? What can we learn from investors who failed to adapt? Tim Harford is an economist, journalist and author of books such as How To Make the World Add Up and host of the Cautionary Tales podcast. 📈Here’s my free investing course: https://makingmoney.email/investing-course-video 🤝 Improve your finances with our adviser service - book free consultation: https://makingmoney.email/financial-advisors-video 🎉 Sponsors Vanta - Get your company secure and compliant: https://vanta.com/makingmoney Tide - Get up to 4.22% AER (variable) on your business savings. Use this link https://www.tide.co/offers/makingmoney or the code 'MAKINGMONEY'. You'll also get £100 if you fund your account with £5,000 in the first 30 days. Ts&Cs apply. The more you save, the higher the rate—up to 4.22% AER (variable) on balances over £1M. New Tide members receive these rates free for 6 months, then your Tide plan’s savings rate and thresholds apply. Visit https://tide.co/savings for full terms and conditions. - If you purchase a product or service using one of the links above, we may receive a commission. There will be no additional charge for you. Remember investments can fall and rise - and past performance is no guarantee of future results. Other fees may apply. Your money is at risk. This is not financial advice. The reason it’s not financial advice is because it’s not tailored to you. We explain the principles of building wealth but if you want personalised advice, it’s worth speaking to a financial advisor. As with everything financial, please do your own research. We really encourage that because no one cares more about your money than you and if you learn the basics then it will change your life. Chapters: 00:00 - Who can predict the future of the market? 10:06 - The crash that took 100 years to recover 14:06 - Tide ad 15:36 - Was Keynes wrong about productivity gains? 23:31 - The right kind of mistakes? 30:07 - Vanta ad 31:26 - Why fees really matter 38:03 - Do we need to change our minds about passive? 46:17 - Are markets efficient? 52:10 - The invention of the index fund 56:55 - Why simple advice always wins 01:00:19 - Zero-sum thinking 01:06:39 - The 3 rules to understand investing data