Dave Ramsey's Investing Advice

Dave Ramsey does not give sensible investment advice. This is not a commentary on Dave Ramsey’s character; it seems like he is genuinely dedicated to helping his audience. My intention here is to educate you on the factually incorrect statements that Dave Ramsey consistently makes about investing, and why those statements could result in bad investment outcomes for you.

Referenced in this episode:
-Luck versus Skill in the Cross-Section of Mutual

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[kage-fm]

this is the most polite 12-minute burn the internet has ever witnessed

[SeanPStanton]

This could have had a crazy click-bait title and could have been over-sensationalized to get more views. But instead Ben just tells it how it is. The more I watch his videos the more I realize that he values being honest and objective more than anything else. That's the main reason I love his videos and his podcast!

[quietmindzero]

I do give him credit on personal savings / spending habits & getting ppl focus to get out of debt... then I usually zone out when he talks about investing.

[perrinayebarra]

I’ve always thought Dave was more useful as a get out of debt coach rather than an investing coach.

[ria]

"It's not rocket surgery as Dave might say"- an all time subtle dig A+

[SoCal]

As a retired pastor I'm quite aware of Ramsey's work and contributions to not only the Christian community, but to all others. He provides tough medicine to those mired in debt, helping them to dig out and get on solid footing. Dave's remarks on investing puzzle me to the extreme. I've heard him ridicule index investing and passive investing. I concluded that while Dave has skills in personal debt management, he is a neophyte at investing. In fact, I was astonished at his ignorance and arrogance at the science of portfolio management.


Dave simplifies everything and dismisses solid research. While not everything is "rocket science, " as Dave puts it, sound investing does require science, and excellent research. From Burton Malkiel to Charle Ellis, the verdict is in. Expenses matter, and they matter big time. Dave needs to read a bit, and he also needs to publicly reveal the names of his recommended funds.


Thank you Ben Felix for this balanced and insightful assessment of Ramsey's work.

[pamelakeighley]

These videos are brilliant. No hyperbole, no exaggeration, no tacky sales pitches. Just data and rational interpretation.

Keep it up!

[justalettertooshor]

Ben, you’re the real deal. I haven’t seen a video yet where a single claim went unsubstantiated with solid empirical evidence from experts. It’s the devotion to just calling things as they are that makes this so great, and it’s representative of what the world could always use more of: honesty.

[dreamtripper]

This is more of a general comment on your videos: I really like how you briefly state your point at the beginning of the video. It makes your intent very clear from the start and it helps follow through the argumentation. I’m not an expert but I think that your reasoning always seems well-founded and you are able to articulate it clearly. Thanks a lot for your very helpful videos!! :-)

[Stefbb]

What could be better than waking up on a sunny Saturday and seeing Ben Felix posted a new video? Auto-like :)

[johntracy]

The bottom line: does Dave Ramsey get credit for giving good investment advice?

The answer: better than he deserves!

[anthonygardner]

Ben - Absolutely love your well researched, data-driven, rational approach to this an all topics. I really appreciate your work. Know that you’re providing a great service to many of us.

[Bolensgoldrush]

I'm always keeping my eye out for Canadian-based investing videos and I'm SO glad to have found yours. I'm currently going through your factor investing videos and trying to wrap my head around them. Just wanted to thank you so much for taking the time to create these!

[geometerfpv]

The focus on research is excellent, and novel on YouTube. I'm an academic in math, and know how much effort it is to the bottom of the research, and draw good conclusions. Good on you, this is a valuable channel.

[AwesumBear]

It's so refreshing to see a channel having the courage to call out bad advice on other channels! Well said, Ben!

[connormatlock]

The problem with Dave when it comes to investing is that he doesn’t look at funds on a tax-adjusted, risk-adjusted, or fee-adjusted basis. Very important to take into account if he’s going to start comparing returns

[Carl-csoz]

The video is informative with factual evidences based on academic researches, rather than based on biased personal experience.

[lizhang]

This is what I have felt for a long time about Ramsey. Thank you, Ben, for this bold segment.

[rachana]

you are doing such a great public service. Informing people with data, peer reviewed information is so POWERFUL.

[jamesb]

He recommends 100% equity for people who can’t seem to stay out of credit card debt. Surely they’ll behave when stocks take a dip...