Large companies supported and promoted by investment managers, brokers, analysts and investment banks have disappeared quickly sometimes. Retail investors should manage equity risk by diversification.
Author Archive | Marcus Padley
Anyone with capital gains from property or shares should scan the rest of their portfolio for possible offsetting capital losses, always being wary of the ATO’s wash sale provisions.
Anchoring refers to a common human tendency to make judgements based on the first piece of information received. In relation to investing, it makes us focus on irrelevant factors when making decisions to buy or sell equities.
Market performance and outperformance can come from many sources, but the main thing to watch for is that you’re not paying high ‘alpha’ fees simply to achieve market ‘beta’ returns.
As we approach the end of the financial year, don’t put off selling the chronic under-performers that are weighing you and your investment portfolio down. Especially if you need an offset to some taxable capital gains.
If you don’t want to settle for a managed fund’s performance letter once a year or have a mistrust for the long term, then these Ten Commandments are a less conventional approach.