Why Most Investors Lose Money: Lessons from Financial Times’ | Jonathan Guthrie | Paisa Vaisa | Anupam Gupta

In this episode of Paisa Vaisa, host Anupam Gupta welcomes Jonathan Guthrie, a veteran award-winning journalist and the former head of the renowned Lex column at the Financial Times. With a career spanning decades at the heart of London’s financial district, Jonathan shares deep insights from his latest book, The Truth About Investing.

The conversation dives into the fundamental shifts in the global investment landscape, comparing the mature UK stock market with the rapid financialization of savings in India. Jonathan breaks down the "Lex test" for evaluating deals and offers a masterclass on navigating the complexities of active vs. passive investing, the dangers of status anxiety, and the reality of risk and advice.

Key Discussion Points:

• The Philosophy of Investing: Why managing money cautiously over long periods beats any "get rich quick" scheme.

• Active vs. Passive Debates: Understanding that passive funds don't entirely eliminate human error and how to choose an active manager with a "special sauce".

• Financial Red Flags: How to spot "juiced" sales metrics, misleading Total Addressable Market (TAM) claims, and why you should be skeptical of "star managers".

• The AI Revolution: Jonathan’s take on the current Artificial Intelligence bubble, potential value destruction, and the lessons learned from previous tech fads.

• The Concept of "Negative Compounding": How inflation and recurring fees can quietly erode your long-term spending power.

• Market Outlook for 2025-26: Thoughts on geopolitical volatility, the role of India as a pivotal state, and the defensive value of domestic defense stocks.

Recommended Reading List from Jonathan Guthrie:

1. The Truth About Investing by Jonathan Guthrie

2. The Intelligent Investor by Benjamin Graham (with notes by Jason Zweig)

3. The Great Crash 1929 by J.K. Galbraith