Whenever you see long-term stock market averages quoted, they likely trace back to Elroy Dimson’s research with Mike Staunton and Paul Marsh, co-authors of The Triumph of the Optimists, a landmark study now spanning over 125 years of global investment returns. Dimson also helped create the FTSE 100 Index and advised Norway’s sovereign wealth fund. Here’s our compound calculator: https://makingmoney.email/compound-interest-calculator Here’s the video I made that Elroy talks about in the episode: https://youtu.be/YilG6KzdlgQ?feature=shared Here is research that Elroy referenced in the interview: Global Investment Returns Yearbook 2025 - which shares the insights from 125 years of data: https://www.ubs.com/global/en/wealthmanagement/insights/2025/global-investment-returns-yearbook.html Long-Run Asset Returns: https://www.annualreviews.org/content/journals/10.1146/annurev-financial-082123-105515 🤝 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% 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% 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 - How do you collect 125 years of market data? 11:59 - Can we trust the data? 13:59 - What is the average return of the stock market? 18:20 - Vanta ad 19:38 - How much data do we need? 25:07 - Do stocks always beat bonds? 31:33 - Can we trust history to tell us future returns? 34:40 - Tide ad 36:11 - Why we need to be cautious about returns 39:27 - Is American exceptionalism over? 43:33 - The importance of diversification 45:25 - The real advantage of low fees 47:52 - How does Elroy Dimson invest? 50:33 - Will stock performance continue? 53:21 Inside Norway’s sovereign wealth fund 59:46 - Is the UK wrong to push home bias for investors? 01:02:09 - Are you overexposed to the UK? 01:04:11 - What do people misunderstand about the data? 01:10:24 - What % return should you put in a compound calculator?