ASX long term investing report

Discussion in 'Property Information Resources & Tools' started by Kat, 1st Mar, 2017.

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  1. Kat

    Kat Well-Known Member

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    Hi all, I'm completely new here but hoping that I can contribute in a meaningful way over time.

    One of the resources which I've found useful is the ASX Long-term Investing Report. I did a quick search, but could not see evidence that this had been posted before. http://www.asx.com.au/documents/research/russell-asx-long-term-investing-report-2016.pdf

    I'd be keen to hear whether you agree with the 20 year figures that the report provides.

    Here are a couple of the charts which may be of interest to those who don't want to read the full report..

    ASX Long Term 20 year with Gearing.jpg ASX Long Term 20 year.jpg
     
    Kat, 1st Mar, 2017
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  2. Simon Hampel

    Simon Hampel Founder Staff Member

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    Hi @BrisKat and welcome to InvestChat!

    I'm not sure how much value there is in taking an asset class and assuming that someone would invest money and leave it untouched for 20 years.

    Different asset classes are affected by different economic conditions in different ways and that provides plenty of opportunity to adjust your weightings or focus to maximise your returns as the economy changes and evolves.

    Just saying that residential investment property outperformed Australian shares over the past 20 years is meaningless IMO because it doesn't tell the full story. It also doesn't tell you whether residential investment property is likely to outperform Australian shares over the next 20 years or anything else.

    As much as I love stats (and I really do love stats), I think you also need to fully understand what those stats actually mean - and more often than not, I find that stats only mean a pretty chart and not much else :eek:
     
    Simon Hampel, 2nd Mar, 2017
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  3. Kat

    Kat Well-Known Member

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    I agree with your points.

    The reports certainly aren't very granular, and I'm personally of the belief that 20 years isn't long term.

    There are several LICs and ETFs that I'm interested in, I tend to use their annual reports and the indexes to build a picture of a 30 year 'return'.

    I consider this to be more reliable, but I'm a complete novice.

    Now I'll have to do a search to what sources of stats other's on here have recommended :)

    Thank you for your advice, I appreciate it.
     
    Kat, 2nd Mar, 2017
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  4. Simon Hampel

    Simon Hampel Founder Staff Member

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    No problems - be sure to ask lots of questions and share any other interesting resources you come across! It's always a good learning opportunity.
     
    Simon Hampel, 2nd Mar, 2017
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  5. twisted strategies

    twisted strategies Well-Known Member

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    welcome BrisKat ,

    maybe not quite the novice you feel , you are thinking, researching and asking questions ... that is a mighty good first step ( imo)

    if looking for data on LICs , member Austing has posted some impressive info on this site ( the best i have seen )

    now 20 year holds ( for LICs and ETFs ) two interesting complications arise , franking credits and DRP schemes , but may prove extra benefit to you ( although our government keeps wanting to mess with franking credits ).

    next in my short ( 5 year ) experience in the market , buy and hold ( not touch ) for decades is flawed ( but neither do i suggest buying and selling down regularly with the trends ).

    buy and watch/monitor might be better , adding some in serious price dips , but also considering what is best for you if an investment hits an unnaturally high price .

    please research deeply if buying ETFs little details ( and they are all different ) can make a big difference .
     
    twisted strategies, 2nd Mar, 2017
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