Resources
The Informed Investor (Five key concepts)
Many people today face difficult choices in achieving their financial goals and, as well they should, they are asking serious questions. Our goal with The Informed Investor is to help you see through the noise of the marketplace in order to make wise decisions about your money… Read more
The Informed Investor (Less Volatility = Greater Wealth)
Exhibit 4 shows two portfolios with the same average return. As a prudent investor, you want the smoother ride of Portfolio A not only because it helps you to ride out the emotional curve, but more importantly, because you will also create the wealth that you need to reach your financial goals… Read more
How to ensure your assets are safe
Like anyone with any knowledge of the circumstances, we are angered and disappointed by what we’ve read. We understand that this must all be a little unsettling, and perhaps more so because Mr Ross had an Authorised Financial Adviser (AFA) qualification… Read more
Market timing: a picture is worth a thousand words
They say a picture is worth a thousand words. I could easily spill a thousand words on market timing. I could talk about how each trade involves a willing buyer and seller; each with equal interests, each with the same access to information. I could talk about the fact that, over about 85 years, the S&P 500 has only gone up 51.02% of the days. I could talk about the concentrated nature of returns. I could show that being out of the market, and missing the best month each year, drops returns by about 7% per year. A widely publicised wager between Warren Buffett and a hedge fund manager… Read more
Active versus passive – the debate is over
At Tailorednz, we believe a growing body of evidence has moved us past the traditional active vs. passive debate. The best evidence comes from the US where the research has been collected and mostly aptly documented. The traditional debate contrasts an index fund, representing the passive camp, and an active equity or hedge… Read more
The benefit of diversification as you’ve never seen it
The topic of diversification has been described in many ways. One of our favourites is “protection from ignorance”. Another is the famous “don’t put all your eggs in one basket.” But to truly get to the heart of why investors should diversify, it’s helpful to illustrate the benefit. First, a little history. Harry Markowitz won a Nobel Prize in Economic Sciences for the novel concept that investors care about more than simply a great investment return. They also care about the certainty of getting that return. The more certain investors are, the lower the expected return they are willing to accept… Read more
A long term lesson in residential property as an investment
In Amsterdam, just on the outskirts of the medieval city, lies a canal. On the edge of that canal sits Herengracht, one of the most prestigious neighbourhoods in the city, built in the 1600s at the start of the golden age of Holland. Over time it has housed wealthy financiers, slave traders, diamond cutters and the like. It has always been considered a premium area, in one of Europe’s most prosperous cities… Read more