Investing Education

When Warren Buffett was asked to distil the essence of investing success, he offered the following:

“Your goal as an investor should simply be to purchase, at a rational price, a part interest in an easily-understandable business whose earnings are virtually certain to be materially higher five, 10 and 20 years from now. Over time, you will find only a few companies that meet these standards – so when you see one that qualifies, you should buy a meaningful amount of stock. You must also resist the temptation to stray from your guidelines: If you aren’t willing to own a stock for ten years, don’t even think about owning it for ten minutes. Put together a portfolio of companies whose aggregate earnings march upward over the years, and so also will the portfolio’s market value.” continue…

by Roger Montgomery Posted in Investing Education, Market commentary.

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Have you heard of the FIRE movement? FIRE – Financial Independence Retire Early is a lifestyle and investment philosophy and movement that’s focused on aggressively saving and investing to achieve financial independence and retire much earlier than the traditional retirement age. continue…

by Roger Montgomery Posted in Investing Education.

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We’ve all heard the stories of entrepreneurs who succeeded after failure. Less common are the stories of those who failed after succeeding. Heck, I Googled “entrepreneurs who failed AFTER succeeding” and Google returned pages and pages of articles with titles similar to; “How successful entrepreneurs bounce back from failure.” The opposite of what I was searching for. continue…

by Roger Montgomery Posted in Investing Education.

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There are a myriad of solutions offered for retirees to help manage their finances and wealth during their golden years. With people living longer, the questions of ‘will it last?’ and ‘how much can I expect?’ are fuelling the proliferation of tools, calculators and apps. Meanwhile, we know that anxiety and stress about money spike during life’s transitions, of which retirement is a big one. continue…

by Roger Montgomery Posted in Aura Group, Investing Education.

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We recently published a blog post here showing that all of Berkshire Hathaway’s alpha between 2016 and 2023 came from just one stock – Apple. Without Apple, Berkshire would have underperformed the S&P 500. 

I know firsthand how challenging it can be to invest in equities. Pursuing exceptional returns requires the ability to identify rare out-performers and the discipline to hold them through inevitable market turbulence. continue…

by Roger Montgomery Posted in Investing Education.

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The debate about whether Australian retirees in pension phase (paying no tax) are better off in ASX-listed stocks, or the U.S. companies of the S&P 500 continues to rage.

Australian listed companies are known for their relatively high dividend payout ratios. It is estimated that, in aggregate, about 80 per cent of ASX 200 company profits are paid out as dividends. 

Part of the reason is that our tax system causes companies to accumulate franking credits that have zero value to them but huge value to retiree shareholders. continue…

by Roger Montgomery Posted in Investing Education.

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Retirement planning is a puzzle that leaves many scratching their heads, wondering, “How much is enough?” Ask Google that question, and out spews a hundred different opinions, many written to avoid offence. Even the experts don’t always agree. From ambitious pre-retirement targets to debates about how our spending patterns change as we age, there are as many plans for retirement as people providing them. continue…

by Roger Montgomery Posted in Aura Group, Investing Education.

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In this week’s video insight, I dive into the topic of asset allocation and how to approach balancing risk and return. Using the analogy of a boat, I explain how equities can act as the engine driving growth, while credit serves as the hull that keeps you steady. The right strategy depends on your stage of life and financial goals. I also touch on the growing appeal of private credit for its potential to deliver strong returns with less volatility. The ultimate goal is to build a portfolio that’s built to last through all conditions.

continue…

by Roger Montgomery Posted in Investing Education, Video Insights.

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Twenty-something: “Dad, I’m going to trade currencies”

Father: “What do you know about it?”

Twenty-something: “There’s a guy on Youtube, and he trades currencies, bitcoin, and the S&P500, using charts and technical analysis, and makes heaps. And he drives a Lamborghini.” continue…

by Roger Montgomery Posted in Investing Education.

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Yesterday, I had the pleasure of participating in the InvestmentMarkets September webinar series to discuss the current economic backdrop and factors driving markets. I highlight two asset classes where I see significant opportunities for investors in the coming new year: innovative quality small companies and Australian private credit. continue…

by Roger Montgomery Posted in Investing Education, On the Internet.

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