Page 31 of the Australian Financial Review (AFR) today has an article suggesting “that the traditional buy-hold approach to owning shares is dead”…full text, with subscription can be found here. The article’s stated reason for buy-hold is that “in the long run, markets always go up and will provide investors with a good return on …
Tag Archive: Financial Planning
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Jan 04
Investment Thoughts for 2012
Firstly I think its appropriate to suggest that I intend to make no return predictions for this year as I do believe its pretty much impossible with litte upside for me. However, what I would like to do is simply point out a few facts, rules, and current issues that need to be considered when …
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Sep 12
More on Asset weighted vs Time Weighted Returns
I just did some simple analysis of balanced fund returns and on a time weighted basis (excluding tax), balanced funds returned on average a compound monthly return of 0.38% in the ten years to the end of August 2011. This is equivalent of a compound annual growth rate of approximately 4.7%. I then assumed the …
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Aug 22
Asset Weighted Returns…an ignored concept
Around a year ago I was involved in a project looking at life cycle investing and I flippantly said that we should differentiate in the market place by offering the younger investors, say 25 years of age, 150% geared investment that reduces down to 30-40% risky assets at age 65. Older investors could lend to the …
May 12
Perpetual Portfolio Manager’s Interesting View
I just had a meeting with Charlie Lanchester, who manages half of Perpetual’s massive Industrial Share Fund, and his views on the Australian economy were far more dire than many commentators are saying. Like many, he believes that commodity prices are very high and showing signs of faultering (doesn’t mean they going to crash just …
Mar 18
Commodity Prices Boom/Bust History
Source: www.macrobusiness.com.au Found the above chart on the brilliant Australian blog, www.macrobusiness.com.au, and its quite a frightening picture indeed. As the headline says, “at no time in the last 200 yeasr have commodity prices risen as fast and as high as in the last decade without a sharp decline”. When you throw in the fact …