COVID-19: an exercise in managing risk
Pandemics terrify me. I’m pretty sure that in my lifetime there will be a major pandemic that causes a sizeable loss of life and has a big impact on the global economy. (In September 2019...
Tagged: investing
Pay less attention to historical returns
“Past performance is no indication of future performance.” If you’ve looked at any investment product with proper disclosure, you’d be familiar with this refrain. It’s a statement that’s required by law. It’s easy to...
The minefield of ethical investing
We all want to be ethical people, right?!Well, at least most of us, right?! In which case, investing in an ethical way is likely to be in line with our values and priorities, right?! Maybe. The idea...
What does wealth mean to you? [VIDEO PRESENTATION]
This week I gave a 30-minute presentation to a group of engineers. I talked about investing and insurance, while emphasising the importance of making financial and lifestyle decisions that are in line with YOUR...
Investing is personal
How would you invest if you were 60 and had an investment portfolio of $5 million? And let’s say you enjoyed a lifestyle that costed, say, $100,000 per year, and didn’t have any desire...
My (in)efficient market hypothesis
One reason academically-inclined people give for investing in index-based funds is the “efficient-market hypothesis”. (Another is the empirical evidence that index-based funds tend to outperform actively managed funds, especially after fees, over the long-run....
Stop complicating your financial affairs!
There are a number of terrific, Kiwi-based, personal finance forums online. For some breadcrumbs, look for Facebook groups inspired by Mr Money Mustache or The Barefoot Investor; check out the Personal Finance NZ subreddit; or Sorted’s...
The myopia of compound interest
Compound interest is magical! But there’s a myopia that surrounds it, too. The magic of compound interest is something many financial gurus like to talk about. The Barefoot Investor is one of them. Below...
Invest in friendship
“Every so often you meet someone from your tribe. And the trick is, when you do, to know that person all your life.” This scene, staring Carrie Fisher as a guest star in Ellen (the sitcom,...
Warren Buffett’s most important lesson
Warren Buffett is an interesting cat. He has long been one of the richest men in the world, and people love to quote him about investing. I’ve done it myself. I think there’s a lot...