I usually get asked the age-old question of “how much money will I need in retirement?”
Unfortunately like most important questions, the answer is ‘it depends’. Everyone is different, thus how much income a person needs or wants varies dramatically from person to person.
The two main things to consider are:
Many investors believe the value of seeing an Investment Advisor or Financial Planner is in the investment advice, such as choosing which funds to use or shares to buy.
Whilst this advice can make a difference and is an important part of the process, the greatest value is in planning to achieve core lifestyle goals and objectives.
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More than a decade after Wesfarmers bought Coles, they are once again separate. In mid-November 2018, Coles split from Wesfarmers, and both began trading as separate entities.
Shareholders received a Coles share for every Wesfarmers share they held.
By the end of the first day’s trading, Wesfarmers’ shares had fallen by $12.26 to $31.96.Continue reading
Working out a company’s value can mean pouring over its financial statements, analysing the quality of its business operations, assessing competitive position, returns on equity, earnings growth, and the list goes on.
However, one thing missing from this list is the importance of the quality of management in a business.
Management may make decisions that are, while in their best interests, not in the interests of the company. This is called agency risk.
Just one public relations mishap can cause a retailer to lose an extraordinary amount of business. A small decline in sales can result in the share price dropping dramatically. Some investors shy away from the sector for that reason.Continue reading
Summer will soon be upon us, which means sunny picnic and beach days as well as rainy days in.
Last year I wrote an article on my favourite investment reads and received a great response and welcome feedback from you all. Here are five other great reads you may enjoy.
The date Lehmann Brothers filed for bankruptcy- September 15, 2008 – marked the worst of the GFC.
10 years is a long time. A decade in the markets is even longer.
New advisors and bankers who are at the beginning of their careers will have only experienced the low interest rates and liquidity that Governments around the world undertook to combat the effects of the GFC.Continue reading
A value investor seeks to buy a stock for less than its intrinsic value (for example, buying for 50 cents a stock worth a dollar).
How does a value investor establish that the intrinsic value of a stock?Continue reading
As long ago as when Benjamin Graham, the father of value investing and early influencer of Warren Buffet, was working on Wall Street developing his revolutionary economic theories, he identified and endorsed diversification as being key to good investment portfolio management.
This belief is fairly commonly held, everyone has heard the old adage, don’t put all your eggs in one basket, but exactly how many baskets should you have, how many eggs in each and what type of eggs?Continue reading
When we look for shares to buy or businesses to invest in, we look for profitable businesses with a good return on equity (that is increasing the value of your share in the business, as well as increasing shareholder’s equity).
If a business is making great profits, what we need to assess is if it can it continue to make and grow those profits, and for how long.Continue reading