Who You Can Trust? White Hat Capitalism: Dave Nadig on Finding Purpose in Finance

Talking Billions with Bogumil Baranowski

How a 30-year ETF veteran learned to prioritize human flourishing over profit maximization

Guest: Dave Nadig - 30-year veteran of the ETF industry, financial blogger, and advocate for pro-flourishing capitalism

Key Moments:

[03:13] Dave shares how his childhood on a farm shaped his financial mindset, developing a scarcity mentality from growing up poor that led him to finance and money management.

[04:38] Dave explains his "Black Hat vs. White Hat" concept in finance - distinguishing between those who prioritize human flourishing (White Hats) versus those focused primarily on profit maximization (Black Hats).

[07:01] Discussion of the Mad Magazine "Spy vs. Spy" cartoons as inspiration for his Black Hat/White Hat framework.

[09:53] Dave emphasizes that people in the "Black Hat" business aren't necessarily evil, but have made different choices about their priorities.

[15:50] Conversation about passive investing and its evolution from the 1980s through today, with Dave sharing his personal journey working at Wells Fargo on the first target date funds.

[19:19] Dave reflects on becoming "a hard convert back to passive investing" after failing as an active fund manager.

[20:14] Discussion of passive investing's impact on market dynamics, particularly how fund flows affect top equities and bond markets.

[26:22] Examination of how capital formation now happens primarily in private markets, not public ones.

[32:23] Dave shares his fascination with consciousness and the brain, discussing Dr. Ian McGillchrist's work on left brain/right brain dynamics.

[34:47] Dave explores how meditation helps investors develop metacognitive awareness and recognize when their perception differs from reality.

[38:39] Discussion of Dave's experiences at Zen Mountain Monastery and how meditation creates space to explore one's own thought processes.

[44:52] Dave's emotional connection to flying, from childhood fascination to earning his pilot's license, and the devastating impact of losing it due to epilepsy.

[53:49] Reflection on how most investors focus too much on narrow details while neglecting broader context and asset allocation decisions.

[55:54] Dave shares how he uses AI tools like Perplexity to streamline research and Claude to assist with data analysis and coding tasks.

[01:01:04] Discussion of how AI will continue to evolve, with the current state being "the worst it's ever going to be."

[01:05:15] Dave's definition of success: having control over his own time rather than financial wealth.

Podcast Program – Disclosure Statement

Blue Infinitas Capital, LLC is a registered investment adviser and the opinions expressed by the Firm’s employees and podcast guests on this show are their own and do not reflect the opinions of Blue Infinitas Capital, LLC. All statements and opinions expressed are based upon information considered reliable although it should not be relied upon as such. Any statements or opinions are subject to change without notice.

Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed.

Information expressed does not take into account your specific situation or objectives, and is not intended as recommendations appropriate for any individual. Listeners are encouraged to seek advice from a qualified tax, legal, or investment adviser to determine whether any information presented may be suitable for their specific situation. Past performance is not indicative of future performance.