In the 76th episode of The Market Misbehavior Podcast, host Dave Keller sits down with Steven Bavaria—author of The Income Factory and publisher of “Inside the Income Factory” on Seeking Alpha—to explore a radically different way of thinking about portfolio growth. Rather than chasing price appreciation, Steven explains how to build long-term wealth through credit-driven income streams, steady reinvestment, and the disciplined use of closed-end funds and private credit structures. Recorded 11/4/25.
Topics covered include:
📈 The Income Factory framework: compounding through consistent cash flow
📈 Senior loans, high-yield bonds, and BDCs as income-building tools
📈 Why closed-end funds offer unique opportunities through discounts and leverage
📈 The rise of private credit and how it reshapes access to yield
📈 Portfolio maintenance: managing risk, reinvesting income, and avoiding timing traps
📈 Market psychology, “price obsession,” and why most investors overlook cash flow
📈 What’s changed (and what hasn’t) since The Income Factory was first published
Key takeaway: True compounding comes from consistency, not prediction. By focusing on durable income, reinvestment, and risk-aware credit exposure, investors can build a portfolio that grows steadily—even when markets fluctuate. Steven’s approach reframes what “total return” really means for today’s income-focused investor.

🎓 Take Dave’s FREE course on behavioral investing: https://www.marketmisbehavior.com/freecourse
📘 Check out Dave’s recommended reading list: https://www.marketmisbehavior.com/readinglist

👉 Follow Dave on X: https://x.com/DKellerCMT
👉 Follow Dave on Bluesky: https://bsky.app/profile/dkellercmt.bsky.social
👉 Follow Dave on Facebook: https://www.facebook.com/marketmisbehavior
👉 Follow Dave on Instagram: https://www.instagram.com/marketmisbehavior

The content in this presentation should not be considered as a recommendation to buy or sell any security. All information is intended for educational purposes only and in no way should be considered as investment advice.