Tasty Trader Talk

This Week on The Compound

September 21, 2025

This Week on The Compound

100 Capital Efficient Companies. 1 Cost-Efficient ETF.

Looking for a compelling alternative to market-cap weighted index funds? TMFE takes 100 high-conviction stocks from The Motley Fool, LLC analysts and weights them according to three factors: profitability, stability, and growth.*

*TMFE is distributed by Quasar Distributors, LLC. Fund is subject to risks.

This week on TCAF, Josh and Michael were joined by Tom Sosnoff, founder and CEO of tastylive and co-founder of thinkorswim. They discussed what it takes to become a trader, how Tom got into the business, his experience selling thinkorswim to TD-Ameritrade, and the difference between Chicago and New York City. (Listen)

INSIGHTS

Earlier TCAF guest Owen Lamont recently wrote, The Illusion of Compound Returns, about the math of ‘holding the market.’ We often hear that investors should ‘hold the market,’ but Lamont notes that many frictions are involved. Lamont writes:

To summarize, although the compound return of 10% per year on U.S. stocks sounds great, that is not what shareholders as a whole are receiving. First, reinvesting dividends implies owning a growing percentage of the stock market and thus is impossible for the aggregate shareholder who owns 100% of all shares. Second, when you own the whole market, you are engaged in a losing timing battle with firms, who will sell you equity when the market is overvalued and buy back equity when it is undervalued. Put these two effects together, and the actual return earned by the aggregate shareholder is closer to 5% than 10%.

Owen Lamont

CHART OF THE WEEK

This year's stock market feels like two separate markets—the Liberation Day decline and the big bounce back. Callie Cox and Matt Cerminaro highlight a chart that shows that V-style recoveries are not all that unusual.

MERCH

New The Compound trucker hats have dropped. You may have seen them out in the wild at Future Proof. They come in both Navy and Black/White. You can check out all our merch at idontshop.com.

COMING SOON

This week on TCAF, Josh and Michael will be joined by Steve Romick, Managing Partner and Portfolio Manager at FPA Funds.

FEEDBACK

SUBSCRIBE

  • You can join the other 208k people who subscribe to The Compound channel on YouTube.

  • Need additional compelling content? Follow The Compound on X/Twitter and Instagram.