Passive Investing Australia

Discussion in 'Shares & Funds' started by Redwing, 18th Sep, 2019.

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  1. Redwing

    Redwing Well-Known Member

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  2. Nodrog

    Nodrog Well-Known Member

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    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”!
     
  3. RogTheBear

    RogTheBear Well-Known Member

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    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.
     
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  4. Redwing

    Redwing Well-Known Member

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

    AFIC 1936 and ARGO 1946
     
  5. pippen

    pippen Well-Known Member

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    Not the biggest fan of PT by the reading too!
     
  6. MarkW

    MarkW Well-Known Member

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    I like andrew99999's posts on Whirlpool.
     
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  7. Cmelderis

    Cmelderis Well-Known Member

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    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
     
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  8. George Smiley

    George Smiley Well-Known Member

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

    Redwing Well-Known Member

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    snrubovic on Reddit has some great info also ;)

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

     
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  10. Pier1

    Pier1 Well-Known Member

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  11. Cmelderis

    Cmelderis Well-Known Member

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  12. Redwing

    Redwing Well-Known Member

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    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.
     
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  13. Burgs

    Burgs Well-Known Member

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    Powerful last paragraph, good stuff.
     
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