Podcast Summary: Suze School: Suze Talks "Fitz” - Don’t Miss It

Podcast Title: Suze Orman's Women & Money (And Everyone Smart Enough To Listen)
Host/Author: Suze Orman Media
Episode: Suze School: Suze Talks "Fitz” - Don’t Miss It
Release Date: February 16, 2025

Introduction

In this engaging episode of Suze Orman's Women & Money podcast, host Suze Orman welcomes investment expert Keith Fitzgerald to discuss advanced investment strategies, particularly focusing on Value Cost Averaging (VCA) and contrasting it with Dollar Cost Averaging (DCA). The episode aims to provide listeners with deeper insights into optimizing their investment approaches beyond traditional methods.

Understanding Value Cost Averaging (VCA) vs. Dollar Cost Averaging (DCA)

Suze Orman initiates the discussion by addressing questions from listeners about the nuances of VCA compared to DCA. She emphasizes the importance of understanding these strategies to maximize investment returns.

Key Points:

• Consistency Over Timing:
  Keith Fitzgerald explains that the specific day or time you choose to invest doesn't significantly impact the effectiveness of VCA or DCA.

  "The key with something like value cost averaging or even dollar cost averaging is to do it consistently." [05:06]

• Debunking Timing Myths:
  Historically, certain times of the day presented better trading opportunities. However, with the advent of computerization in trading, these timing advantages have diminished.

  "The computers have eliminated all of that [advantageous timing]." [07:19]

• Flexibility of VCA:
  Unlike DCA, which involves investing a fixed amount regularly, VCA adjusts the investment amount based on the portfolio's performance relative to a predetermined target. This flexibility can lead to purchasing more shares when prices are low and fewer when prices are high.

  "With value cost averaging, you're getting a little bit more than with dollar cost averaging because you're not sticking to the same dollar amount every month." [17:34]

Listener Questions and Expert Answers

Throughout the episode, Suze and Keith tackle various listener-submitted questions, providing clarity on complex investment topics.

1. Does the Time of Day or Month Matter for VCA?
   Keith reiterates that consistency is paramount, and over-focusing on specific timings can lead to unnecessary stress and potential losses.

   "The big key is consistency, number one." [05:51]

2. Allocating Funds and Adjusting Investments:
   Listeners expressed confusion about allocating funds, especially when portfolio values fluctuate. Keith advises maintaining flexibility and adjusting contributions based on financial goals and market conditions.

   "You find great stocks, you invest in them consistently, you hold for as long as you can." [07:19]

3. Handling Market Downturns and Investment Depletion:
   Concerns about depleting investment funds during prolonged market downturns are addressed by emphasizing the historical upward bias of markets and the importance of maintaining investments in quality stocks.

   "The markets since 1871 have a very defined upward bias." [16:47]

Deep Dive: Investing in Palantir

One of the standout segments of the episode focuses on the investment potential of Palantir Technologies.

1. Is It Too Late to Buy Palantir?
   Keith confidently asserts that it's not too late to invest in Palantir, citing its strong position in AI and big data.

   "Palantir is still a phenomenal stock. It is still early days." [30:26]

2. Determining Investment Amount in Palantir:
   For investors unsure about the extent of their investment in Palantir, Keith advises assessing personal comfort with risk and emotional readiness.

   "If you're asking that question or you're losing sleep at night, you've got too much risk on the table." [32:52]

3. Handling Significant Gains:
   When Palantir stock doubles, Keith recommends strategies like "selling into strength" to secure profits while maintaining investment positions.

   "If you want to take a little bit of money off the table... that's probably a pretty smart thing to do." [33:37]

Protecting Savings and Assets Amidst Economic Fears

The episode also addresses widespread concerns about the stability of bank accounts, savings, and assets.

Keith's Advice:

• Stay Calm and Focused:
  Amidst fears of bank failures and treasury instability, Keith urges listeners to remain calm and focus on investing in strong companies.

  "Take a deep breath... invest as if the sun's coming up tomorrow." [37:28]

• Control What You Can:
  Emphasizes controlling investment choices rather than worrying about uncontrollable economic factors.

  "What you can control is buying great companies, investing in amazing technology stuff that is going to build your future." [37:28]

Future Programs and Developments

Towards the end of the podcast, Suze and Keith discuss upcoming projects aimed at simplifying VCA for a broader audience.

Key Developments:

• Creation of a Value Cost Averaging ETF:
  The duo is working on developing an Exchange-Traded Fund (ETF) that automates VCA, making it accessible for both novice and seasoned investors.

  "We're also pursuing an ETF because that's something that any investor can use." [44:46]

• Overcoming Technical Challenges:
  They acknowledge the complexities involved in scaling the VCA model for potentially hundreds of thousands of investors and the continuous evolution of market technologies.

  "We had to reprogram everything." [43:35]

• Integration with Financial Planning:
  The proposed ETF will seamlessly integrate with financial plans, allowing investors and their financial advisors to manage investments efficiently.

  "Your financial professionals... can work on integrating it into your financial plan." [47:29]

Conclusion and Final Thoughts

The episode wraps up with final advice and motivational messages for listeners.

Suze Orman's Closing Remarks:

• Prioritize People Over Money:
  Suze reiterates the core philosophy of prioritizing personal well-being over financial gains.

  "People first, then money, then things." [49:42]

• Encouragement to Invest Consistently:
  Suze encourages listeners to continue investing diligently, leveraging the strategies discussed.

  "Continue to invest right now, continue to do these things we've talked about." [48:15]

Final Motivational Quote:

Both Suze and Keith conclude with a powerful affirmation to inspire and unify listeners in their financial journeys.

"We are strong we are wise we will not apologize we are here we will thrive Together we will rise." [49:12]

Notable Quotes with Timestamps

• On Consistency in Investing:
  "The key with something like value cost averaging or even dollar cost averaging is to do it consistently." – Keith Fitzgerald [05:06]

• On Eliminating Timing Advantages:
  "The computers have eliminated all of that." – Keith Fitzgerald [07:19]

• On VCA's Flexibility and Benefits:
  "With value cost averaging, you're getting a little bit more than with dollar cost averaging because you're not sticking to the same dollar amount every month." – Suze Orman [17:34]

• On Market Upward Bias:
  "The markets since 1871 have a very defined upward bias." – Keith Fitzgerald [16:47]

• On Investing in Palantir:
  "Palantir is still a phenomenal stock. It is still early days." – Keith Fitzgerald [30:26]

• On Protecting Investments:
  "Take a deep breath... invest as if the sun's coming up tomorrow." – Keith Fitzgerald [37:28]

• On Upcoming ETF:
  "We're also pursuing an ETF because that's something that any investor can use." – Suze Orman [44:46]

Key Takeaways

1. Value Cost Averaging (VCA) offers a flexible investment strategy that adjusts contributions based on portfolio performance, potentially enhancing returns compared to traditional DCA.

2. Consistency in investing is more crucial than attempting to time the market based on specific days or months.

3. Emotional Discipline is essential; managing fear and uncertainty can significantly impact investment success.

4. Future Investment Tools, such as a VCA-focused ETF, aim to simplify and democratize advanced investment strategies for a wider audience.

5. Market Resilience: Historically, markets exhibit an upward bias, reinforcing the importance of long-term, consistent investment in strong companies.

Final Advice

Suze and Keith urge listeners to stay informed, remain consistent, and employ disciplined investment strategies like VCA to navigate the complexities of the financial markets effectively. By focusing on long-term goals and maintaining flexibility, investors can enhance their financial security and achieve their wealth-building objectives.

This summary encapsulates the key discussions, insights, and conclusions from the podcast episode, providing a comprehensive overview for those who haven't listened to it.