Tag Archives | investment returns

beating the odds

Investing versus chance and beating the odds

It’s much easier to measure returns than the risk involved in generating those returns. Yet, it’s crucial to understand risk because in certain markets, higher returns may simply be coming from taking more risk.

value or growth investors

Should you be a value or growth investor?

The idea that stocks should be divided into growth and yield categories diverts us from fundamentals. Intrinsic value eventually manifests in higher cash flow, whether or not share price appreciation anticipates it.

A better way to measure Australian small caps investments

A better way to measure Australian small caps

Inefficiencies in the small caps index means outperformance is common but that should not cost 60% more in fees than large caps. Large caps have outperformed small caps over the long term but with significant variability.

active vs passive debate

Let’s refocus the active v passive debate

The active v passive debate has deflected attention from a more important issue, a focus on managing to client goals. Plus active management has suffered relative to passive by the central bank-driven uplift of all assets.

financial fire drill

Four checks for a financial fire drill

The best time to do a financial fire drill is when there is no fire. Planning for a major bear market will help prevent emotional upheaval and panic selling, and advisers have an important role to play with their clients.

asset classes

Asset class performance and lessons in 2017

It’s been a golden period for investing for those willing to take some risk. Australia has experienced six straight years when everything went up, and this has never happened before in history.

portfolios

Building better portfolios by forecasting markets

The longer the holding period, the lesser the variation of actual returns from expected ones. Using this principle should allow construction of actively-managed portfolios that outperform passive portfolios.

Register for our free weekly newsletter

New registrations receive free copies of our special investment ebooks.