Saturday, July 18, 2015
Wednesday, December 10, 2014
Saturday, December 6, 2014
Friday, December 13, 2013
Thursday, June 27, 2013
Why should I be financially literate?
From the OCDE website:
“For one thing, the growing sophistication of financial markets means consumers are being offered a variety of complex financial instruments for borrowing and saving, with a large range of options. At the same time, the responsibility and risk for financial decisions that will have a major impact on an individual’s future life, notably pensions, are being shifted increasingly to workers and away from government and employers. As life expectancy is increasing, the pension question is particularly important as individuals will be enjoying longer periods of retirement.
Individuals will not be able to choose the right savings or investments for themselves, and may be at risk of fraud, if they are not financially literate. But if individuals do become financially educated, they will be more likely to save and to challenge financial service providers to develop products that truly respond to their needs, and that should have positive effects on both investment levels and economic growth.
Research indicates that the level of financial literacy is low in most countries, including in developed countries.
In an Australian survey, "67% of those taking part claimed to understand the concept of compound interest but only 28% could find the correct answer to a problem using the concept.”
If you want test yourself and take a short financial literacy quiz, please follow this link:
http://usfinancialcapability.org/quiz.php
“For one thing, the growing sophistication of financial markets means consumers are being offered a variety of complex financial instruments for borrowing and saving, with a large range of options. At the same time, the responsibility and risk for financial decisions that will have a major impact on an individual’s future life, notably pensions, are being shifted increasingly to workers and away from government and employers. As life expectancy is increasing, the pension question is particularly important as individuals will be enjoying longer periods of retirement.
Individuals will not be able to choose the right savings or investments for themselves, and may be at risk of fraud, if they are not financially literate. But if individuals do become financially educated, they will be more likely to save and to challenge financial service providers to develop products that truly respond to their needs, and that should have positive effects on both investment levels and economic growth.
Research indicates that the level of financial literacy is low in most countries, including in developed countries.
In an Australian survey, "67% of those taking part claimed to understand the concept of compound interest but only 28% could find the correct answer to a problem using the concept.”
If you want test yourself and take a short financial literacy quiz, please follow this link:
http://usfinancialcapability.org/quiz.php
Thursday, May 30, 2013
Monday, February 25, 2013
Tuesday, September 25, 2012
API (ASX) Australian Pharmaceutical Industries
Here is a company which we think is attractively valued. Fundamentally, the difference between the market price and the fundamental value of the business gives us confidence in the attractiveness of the investment for the medium to long term. With a comfortable margin of safety, we think it is worth accumulating below 50c.
This company could easily belong to a focus portfolio with a 3/5 years horizon.
As usual, it is important to note that this is not a recommendation or an advice, just an opinion and it is recommended that you do your own research before taking any action.
Thursday, August 16, 2012
Some basic rules for active smart investing
• Think of stocks as businesses.
• Invest only in a very few select companies which offer a large margin of safety.
• Buy a meaningful amount on each stock selected.
• Keep a very low portfolio turnover (avoid transaction costs).
• Invest for the long term. You should be prepared for the inevitable market ups and downs which often represent opportunities.
• Ignore market forecasts.
• Never leverage.
• Invest only in a very few select companies which offer a large margin of safety.
• Buy a meaningful amount on each stock selected.
• Keep a very low portfolio turnover (avoid transaction costs).
• Invest for the long term. You should be prepared for the inevitable market ups and downs which often represent opportunities.
• Ignore market forecasts.
• Never leverage.
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