Episode 65: Investing Based on the Evidence Pyramid: A Few Lessons from the Medical Profession with Dr. Wendall Mascarenhas.

Our guest today on the Rational Reminder Podcast is Dr. Wendall Mascarenhas. Wendall is a listener, DIY investor a medical professional. He actually reached out to us on Twitter and suggested this episode, a listener-centric discussion as well as one comparing the different approaches to evidence from the medical and the financial communities. We thought this was a great idea and the perspective that Wendall offers is very illuminating and thought-provoking. We discuss some of Wendall’s own experience and background in both investing and medicine and from there go onto a more theoretical discussion of evidence and literature, asking the question why the financial industry is not more concerned with data. Wendall lays out the evidence pyramid and explains a few of its layers, we discuss a few tips and think about the extent to which DIY investors should involve themselves in their money with things like factor investing. Wendall also offers some of his thoughts on financial advice and the emergence of new information. For this fresh and insightful chat, be sure to join us!

Subscribe to the Rational Reminder podcast

Key Points From This Episode:

• Why Wendall chose to reach out to us over Twitter. [0:03:01.8]
• Wendall’s medical background and the perspective he brings to investing. [0:04:00.1]
• Index funds and diversified portfolios instead of active management. [0:06:41.7]
• The role of evidence and literature in medical prescriptions and treatment. [0:08:17.0]
• Trying to account for the differences in approach to medicine and investing. [0:10:58.2]
• A description of the different levels of the evidence pyramid. [0:12:23.5]
• Five tips for do-it-yourself investing from our guest! [0:19:20.5]
• Should you worry about factors as a DIY investor? [0:24:24.0]
• Wendall’s thoughts on the value of good financial advice. [0:26:17.7]
• How new information is circulated in the medical community. [0:30:11.0]
• Why expert opinion is the least valuable type of evidence. [0:31:49.7]
• Wendall’s definition of success in his life. [0:35:07.9]
• And much more!

Tweetables:

“I reached out, hoping that I could give a listener perspective and things we go through as a new investor.” — Wendall Mascarenhas [0:03:31]

“I really thought comparing how evidence is used in  your industry, compared to my industry, which is healthcare, was really kind of a stark contrast and an interesting topic to discuss.” — Wendall Mascarenhas [0:03:43]

“I think it’s important for the listeners to know that I have no financial background whatsoever and as my dad, he’s a family physician. We’re both in healthcare.” —  Wendall Mascarenhas [0:05:58]

Links From Today’s Episode:

Rational Reminder Website — https://rationalreminder.ca/

Dr. Wendall Mascarenhas — https://www.osteoscience.org/who-we-are/our-people/wendall-mascarenhas/

Evidence Pyramid — https://academicguides.waldenu.edu/library/healthevidence/evidencepyramid

Fama and French — https://www.investopedia.com/terms/f/famaandfrenchthreefactormodel.asp

Canadian Couch Potato — https://canadiancouchpotato.com

Jack Bogle — https://www.cnbc.com/2018/12/14/jack-bogle-founder-of-vanguard-group-and-creator-of-the-index-fund-dies-at-age-89.html

Vanguard — https://investor.vanguard.com/corporate-portal/

MD Management — https://mdm.ca/md-wealth-management

Uber — https://www.uber.com

Common Sense Investing on YouTube — https://www.youtube.com/watch?v=tvXw2Jfqz9w

Robert Downey Jr. — https://www.imdb.com/name/nm0000375/

Iron Man — https://marvelcinematicuniverse.fandom.com/wiki/Iron_Man_(film)