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Edition: 552

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Welcome to Firstlinks Edition 552 with weekend update

  • 21 March 2024
  • 15

Being rich is having a high-paying job and accumulating fancy houses and cars, while being wealthy is owning assets that provide passive income, as well as freedom and flexibility. Knowing the difference can reframe your life.

Finding the next 100-Bagger

The holy grail of investing is to find a stock that can generate life-changing returns. Here are four ways to improve your chances of unearthing the next Nvidia or Pro Medicus, and the challenges you may face along the way.

How SMSFs are investing their money

New data shows the number of advised SMSFs is increasing at the expense of self-directed SMSFs. It also suggests more SMSFs are turning to international markets and ETFs to diversify their investment portfolios. 

Australia lags global dividend bonanza

2023 saw global dividends rise to a record US$1.66 trillion, up by 5% on an underlying basis. The year also ended on a positive note, though Australian dividends lagged other countries, largely thanks to the miners.

The aged care recommendations that will cost you more

An 'unofficial' recommendation from the Aged Care Taskforce will see higher aged care accommodation costs for all, and there is still much uncertainty around means-testing, and government subsidies.

Passive investing is bad for capitalism

While capitalism has its downsides, no system allocates resources better, and the result is a complex, adaptive economy. But indexation has amplified the disconnect between valuations and fundamentals, with worrying implications.

Finding single-digit PE stocks in an overvalued market

For one Commonwealth Bank worth ~$200 billion, you can buy three of Europe's leading banks with much larger addressable markets. This is just one example of the extreme valuation divergences across global stock markets.

Credit trumps residential property for headache-free income

Following on from the strong performance of global investment grade credit in 2023, the Australian credit market is emerging as a great diversifier and alternative to investing in other ‘safe haven’ asset classes.

Most viewed in recent weeks

Vale Graham Hand

It’s with heavy hearts that we announce Firstlinks’ co-founder and former Managing Editor, Graham Hand, has died aged 66. Graham was a legendary figure in the finance industry and here are three tributes to him.

Australian stocks will crush housing over the next decade, one year on

Last year, I wrote an article suggesting returns from ASX stocks would trample those from housing over the next decade. One year later, this is an update on how that forecast is going and what's changed since.

Avoiding wealth transfer pitfalls

Australia is in the early throes of an intergenerational wealth transfer worth an estimated $3.5 trillion. Here's a case study highlighting some of the challenges with transferring wealth between generations.

Taxpayers betrayed by Future Fund debacle

The Future Fund's original purpose was to meet the unfunded liabilities of Commonwealth defined benefit schemes. These liabilities have ballooned to an estimated $290 billion and taxpayers continue to be treated like fools.

Australia’s shameful super gap

ASFA provides a key guide for how much you will need to live on in retirement. Unfortunately it has many deficiencies, and the averages don't tell the full story of the growing gender superannuation gap.

Looking beyond banks for dividend income

The Big Four banks have had an extraordinary run and it’s left income investors with a conundrum: to stick with them even though they now offer relatively low dividend yields and limited growth prospects or to look elsewhere.

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