Peter Rodgers

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June 14, 2017

Meet the non-conspicuous saver and investor

The Millionaire Next Door, a long-time personal finance bestseller that has found a place in the bookshelves of generation after generation of investors, has turned 21. In 1994, late US academics Thomas Stanley and William Danko first published their telling blueprint for the quiet accumulation of wealth in an understated, non-showy fashion. This is the opposite of the get-rich-quick approach. Based on comprehensive surveys over some years plus face-to-face interviews of hundreds of wealthy individuals, Stanley and Danko wrote that “prodigious accumulators of wealth” (PAWs) are typically modest in their spending habits; they don’t tend to look like rich. By contrast, […]
May 3, 2017

Avoid ‘piecemeal’ portfolio creation

How did you create your investment portfolio? Was it a carefully thought out, highly planned and disciplined process? Or was it a “piecemeal” approach? As analysts wrote in the paper, Vanguard’s framework for constructing globally diversified portfolios: “Without a plan, investors often build their portfolios from the bottom up, focussing on investments piecemeal rather than on how the portfolio as a whole is serving the objective.” Another way to characterise the piecemeal approach, the analysts add, is fund-collecting. “These investors evaluate a particular fund [or an individual asset] and, if it seems attractive, they buy it – often without thinking […]
April 19, 2017

All-terrain motoring, all-terrain portfolios

More of us are equipped for all-terrain motoring but how ready are you for all-terrain investing? Australians bought more new sports utility vehicles (SUVs) than passenger cars in February for the first time in any month on record, according to the Federal Chamber of Automotive Industries. More than 35,000 SUVs were sold in that month. Just as we hopefully select our next cars on the basis of being fit for their intended purpose – although countless SUVs apparently never leave the bitumen – we hopefully take the same approach when creating our investment portfolios. A robust, all-terrain portfolio could be […]