Passive Investing Australia

No idea who's site this is, beyond a posters opinions on Whirlpool and Reddit, however I found it an interesting read

Passive Investing Australia

Among some of the threads of interest on Passive Investing there's also

MISCONCEPTIONS EXPLAINED

1. Dividend investing vs total return investing
2. LICs - are they all they're cracked up to be?
3. P2P lending and the risk-return spectrum
4. Why not invest in Indian fixed deposits at 8% interest?
5. Should I chase higher interest rates in another developed country?
6. Why not just invest everything in the US market?

 

You’ll find Andrew on Bogleheads as well. He’s become very much the Boglehead disciple. His site is one of the best locally. I postedit awhile back in the Stock Resources thread from memory,

I find his views very interesting especially AU currency vs Global asset allocation.

Like a lot of younger investors it’ll be interesting to see if their views are still the same when actually in “retirement”!

 

As a website designer, I'd have to say that's a bleak looking site! Perhaps it's just the beta version?

One of the things I find myself ruminating on is that, even including the GFC, our "run" of not having a recession has been amazing, and obviously I hope it will continue long into the future for everyone's benefit, but some of the passive investment philosophies we're all sort of following in our own ways may not work so well in hard times.

I guess that's the core of the granddaddy LIC thing isn't it? That they have data indicating exactly how they coped in times of trial and tribulation, whilst the new kids on the block - currently higher yielding perhaps - do not.

 

Yep, No ETF's or Index Funds around when LIC's began

AFIC 1936 and ARGO 1946

 

Not the biggest fan of PT by the reading too!

 

I like andrew99999's posts on Whirlpool.

 

As someone looking to start their investment journey ( in stocks ) would you recommend reading through this Passive Investing site? Was also thinking of reading Peter Thornhills book - the granddaddy of LIC
@Redwing I see you are WA based also....I would love a mentor or direction to some local resources if you know of any thanks all

 

I occasionally look at the finance related threads there. Codebeard and Zircosil are other good ones.

 

snrubovic on Reddit has some great info also

Strong Money Australia - BUILDING FINANCIAL STRENGTH AND A LIFE OF FREEDOM is WA based

 

snrubovic on Reddit has some great info also

Same same, but different name

 

Yes, have exchanged a few messages with Snowball before are you not WA based also?

 

Pinched from Reddit, but applicable to the thread

I've gone into a lot more detail on LIC's.

The most important thing is that if you do use those LIC's, then use them in place of your Australian equities and not in place of your entire equities. Make sure most of your equities are global equities for diversification. Diversification and risk tolerance are the two most important things in investing. If you're so focused on trying to decide between ARG and VAS then you'll forget that neither of them should make up the majority of your equities and as such the decision between them pales in importance to the decision of how much global equities you have within your equities and how much you have in safe assets like bonds to diversify out of owning just equities.

On why not to invest entirely in Australian shares

• Dividends are irrelevant
  
• Tax advantages (franking credits) are largely priced in and what remains may be gone in the future.
  
• Idiosyncratic country risk (single country risk). Nobody has any idea if Australia will continue to perform well or if will go into an isolated economic crisis.
  
• Your income and job security are tied to Australia so investing internationally will reduce the risk of your income and investments going down together.
  
• You can improve risk-adjusted returns investing globally.
  
• Global equities hedged to AUD can accomplish the same mitigation of currency risk for a practically insignificant cost while removing idiosyncratic country risk.
  

Also, just as an end note, investing shouldn't be and really isn't that hard. The problem is you get all of this misinformation from people and it seems confusing. I put up this site specifically to show people how simple investing is once you cut out the nonsense and focus on the fundamentals. It isn't monetised so I get nothing from you having a read of it, I put it there entirely to help people who are confused by all the nonsense and misinformation out there because once upon a time I was in the same situation. If you haven't seen it, it might be some use to you.

 

Powerful last paragraph, good stuff.

 

Still one of the great local resources Passive Investing Australia

 

im confused. At the top of this thread they reference “Andrew” but when i click on the “Passive Investing Australia” link, the website says his name is “Eli”?

 

He has several user names on various sites, I can't recall the one he uses on PropertyChat

I noticed an update on his page also (revision log is great)

How much do I need to save every month to meet my retirement goal? — Passive Investing Australia

 

His real name is Eli as stated on his site. Forum names are just random.

 

Agreed. It’s good work. Impressive amount of effort has gone into it.

 

What is superannuation? — Passive Investing Australia

 

I don’t know how someone can justify the claim that currency risk can be effectively hedged. For how long? At what price? There is no such thing as a perfect hedge.

Like most things, I find the arguments for diversification attractive initially but when taken to extremes like this, they become quite unattractive… The fact that I can’t think of anyone who got rich via diversification is part of that…