Archive of posts filed under the Strategy category.

Why Investors Must Not Mix Politics With Investing

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Politics plays an integral part of our lives everyday.However when it comes to investing, we are better off ignoring politics in making our investment decisions. Though politics is a necessary evil in all countries, markets are much bigger than politics and generally markets can overcome political shocks and surprises. Political events may create short-term volatility in the markets …

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The Vanguard 2016 Index Chart (Australia Edition): Invest for the Long-Term

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Yesterday we looked at the importance of long-term investing using the UK edition of The Vanguard 2016 Index Chart. The Australian edition of The Vanguard 2016 Index Chart below shows how long-term investing produces the most returns with equity investing: Click to enlarge A A$10,000 investment in 1986 would have produced an annual return of 9.6% beating …

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The Vanguard 2016 Index Chart Shows Why Investing for the Long-Term is Important

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One of the critical factors for success in equity investing is investing for the long-term which can considered as 5 years of more. Holding solid high-quality stocks for 10 years or even decades can create fabulous wealth. The UK edition of The Vanguard 2016 Index shows the power of long-term investing and diversification: Click to enlarge …

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The Futility of Savings When Interest Rates Are Low

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Albert Einstein once said “Compound interest is the eighth wonder of the world. He who understands it, earns it … he who doesn’t … pays it.” Compounding simply implies earning interest on interest to multiply one’s cash savings. The power of compounding works well only when the interest rate offered on a savings account is decent. …

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On The Issue Of Home Bias Of Stock Market Investors

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One of the factors that affects investors in the construction of a equity portfolio is the issue of home bias. Because of this issue investors to tend to avoid investing in foreign stocks. An investor building a globally diversified portfolio must allocate assets based on the market-cap weighting of each country in a broad global …

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