A fundamental attribute for being a successful investor is the virtue of patience. This is having the patience to focus on achieving your long-term goals and sticking to your portfolio’s target asset allocation without being thrown off course by inevitable bouts of sharp rises and falls in markets along the way. Impatience must surely rank […]
In building an investment strategy to provide independent income streams for life after work we continue to analyse different asset returns given the impact of inflation is often underestimated. Even with a “low” 2.5% pa inflation rate over 20 years, this will result in a 60% rise in the cost of living. To put this […]
To ensure clients continue to get optimal investment outcomes we are continually seeking out reliable research and in the last few weeks the 30 June 2015 SPIVA Scorecard was released. This is a regular paper which compares the historical results of Australian and international equity managers to benchmark returns. In the latest report the evidence […]
History shows investment inflows (people buying) are highest after periods of strong performance and outflows (people selling) peak after periods of poor performance. In other words investors tend to buy at high prices and sell at low prices resulting in wealth destruction and performance below that of what markets deliver. Source: Bloomberg and ICI as […]
‘And you thought 2011 was tough?’ So went the headlines in December as media and market pundits, reflecting on a miserable year, saw no respite for investors in 2012. But markets have a funny way of confounding expectations. To be sure, the reasons to be anxious were piling high as the year turned, with European […]
Warren Buffet, in his 1997 Chairman’s Letter to the Shareholders of Berkshire Hathaway Inc., offered this advice, which is just as relevant today as it was then. A short quiz: If you plan to eat hamburgers throughout your life and are not a cattle producer, should you wish for higher or lower prices on beef? […]