From the Blog

How to save money on Electricity bills

Retail electricity prices have been increasing over the last five years. Deregulation of the retail market, it was hoped, would lead to reduced pricing. However the retail cost component of electricity supply appears to have increased.  More recently, higher energy production costs have led to higher retail prices.   There is an argument to switch […]

First Rule Don’t Lose Money – Repeated by SeekingAlpha

Professionals refuse to lose money. They pay attention to the downside far more than the upside. What they make in the markets – they usually keep. Professionals are always looking for extra leverage. Leverage is when you have the possibility of making a lot of money by investing very little. Professionals never stop learning and […]

Index Funds vs Fund Managers – Small Caps Funds Managers Win

Regal’s small caps fund has achieved 103pc return in it’s first 12 months since inception in January 2015.  The key contributors of the past year have been positions in Bellamy’s Australia, BWX Limited, and Aconex.  The fund can also short stocks and invests outside the top 100 ASX stocks.  Research for short selling is just as rigorous as […]

Buffett Wisdom – Staying Out of Trouble

Its easier to seek forgiveness than ask permission (EAFP) doesn’t work with financial risks because essentially there is no forgiveness. In the case of financial risk Buffett summed it up this way.   Its easier to stay out of trouble than get out of trouble. Or its easier to not take risk and not lose money, […]

How Warren Buffett Invests – Not!

From USA Today Warren Buffet now 83 speaks about how to invest wisely “Doing reasonably well investing in stocks,” Buffett says, “is very, very easy.” “Buy an index fund, preferably over time, so you end up owing good businesses at a reasonable average price,” says Buffett. “And that is all you have to do.” Its […]

The Graham and Dodd PE Ratio

The Graham and Dodd price earnings ratio simply uses the average earnings over the last ten years as E in the P/E ratio.  Although the time cost of money over the ten years seems to be ignored, there is supposedly a correlation between companies with a Graham and Dodd PE of between 5 and 10 […]

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Investing in indexes or sectors via Exchange Traded Funds

Investing in indexes rather than individual stocks is a good way to reduce risks associated with individual companies. A great way to invest in indexes via exchange traded finds (ETF) on the ASX see Beta Shares http://www.betashares.com.au/products/ including Gold, Australian Resources and ASX 200 Financials. A leveraged ETF of high yeild ASX stockes  is now also available […]

Fund size matters, big is not always best when you want to outperform

It could  just making life easier for fund managers but often new fund managers are now limiting the size of their funds in order to be nimble enough to out do the index.      

Investment

In theory selecting the right balance of the major asset classes will impact overall portfolio return more than which individual assets are chosen within each asset class. Most fund managers would argue that they can outperform the benchmark for their asset class by picking individual assets within that asset class Fund managers are behind the […]