risk_reward

Risk and Reward

There is a natural assumption in almost every aspect of life that, from playing a cricket shot to investing in the stockmarket, there is a trade off between risk and reward. But when it comes to investing, one of the most common mistakes is to look at returns, at forecasts, at earnings growth and dividends,…

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Catholic or Private School

This was written in 2014…. A friend is trying to decide whether to send their child to the local Catholic School or the local Private School. They have a choice and have asked me to do a few numbers. Here’s the benefit of having the Lord by your side: If you assume that all other…

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ASX Education: 11.7%pa for 33 years

From 1941 to the low in 1974, the average annual compound return on the All Ordinaries Index for 33 years was 2.9 per cent per annum. Take off inflation of 4 per cent and you were going backwards. And that doesn’t include 1929 to 1941, which would have pulled it even lower. In the next…

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ASX Education: How to make a Million

I ask for Stupid Questions in my newsletter and I get them. Here’s one memorable one: “I have $10,000 and want to turn it into a million dollars. How do I do it?” You’re thinking “How Stupid” but there are no stupid questions in this game and if you think about it, it’s actually a…

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