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Steve Hiscock, a professional investor for over 3 decades, provides a ton of wisdom on investing
Discusses how his father sparked his interest in investing & how he inherited his portfolio
Portfolio performed extraordinarily well over the long-term
Discusses how his father sparked his interest in investing & how he inherited his portfolio
Portfolio performed extraordinarily well over the long-term
Father had bought CSL early & never sold, finishing at 20% of portfolio
40% was in small caps
Was not that diversified
Despite his father not being diversified, he believes it’s incredibly important to diversify across asset classes
And to temper your emotions as an investor
40% was in small caps
Was not that diversified
Despite his father not being diversified, he believes it’s incredibly important to diversify across asset classes
And to temper your emotions as an investor
A lot of investors don’t appreciate how big the difference is between cashflow & income
Cashflow pays debt
Income can be manipulated & distorted by valuation changes etc
Cashflow pays debt
Income can be manipulated & distorted by valuation changes etc
Mistakes are inevitable, treat them as learning experiences
Previous crashes have taught him to think carefully about valuation
Key learning:
Markets go up over time despite volatility & crash aprox every 10yrs
Previous crashes have taught him to think carefully about valuation
Key learning:
Markets go up over time despite volatility & crash aprox every 10yrs
The current good times won’t last forever; new investors should temper expectations
How you handle your losses is key to how well you’ll do
How you handle your losses is key to how well you’ll do
Advice:
Just because something is expensive or cheap doesn’t mean SP will follow
Quality of company & growth in earnings ultimately determines SP performance
If it’s cheap probably deserves to be
Just because something is expensive or cheap doesn’t mean SP will follow
Quality of company & growth in earnings ultimately determines SP performance
If it’s cheap probably deserves to be
Advice cont:
Read historical investment books, especially about bubbles
Important to have some view on valuation
Decide what investor you are & ensure this style suits your personality
Failure is a fact of investing, cut your losses early & don’t brood
Read historical investment books, especially about bubbles
Important to have some view on valuation
Decide what investor you are & ensure this style suits your personality
Failure is a fact of investing, cut your losses early & don’t brood
Advice cont:
Look carefully at interest rates
Be wary of market forecasters
Research & read as much as you can it will increase your hit rate
Look carefully at interest rates
Be wary of market forecasters
Research & read as much as you can it will increase your hit rate
Advice cont:
If it keeps you up at night, sell it
Reinvest for compounding
Diversification is incredibly important
@gemma_dale https://www.nabtrade.com.au/investor/insights/your-wealth/news/2021/01/what_i_ve_learnedin
If it keeps you up at night, sell it
Reinvest for compounding
Diversification is incredibly important
@gemma_dale https://www.nabtrade.com.au/investor/insights/your-wealth/news/2021/01/what_i_ve_learnedin
