Register For Our Mailing List

Register to receive our free weekly newsletter including editorials.

Register

5 November 2026

Home / 399

What Kenny Rogers can teach you about investing

Saturday marks a year since the legendary country singer Kenny Rogers passed away. Although the world has changed dramatically since Ken passed away, there are still plenty of pearls of wisdom (or Aces to Keep) from his most popular song, The Gambler.

You've got to know when to hold 'em

Former NBA General Manager Sam Hinkie once wrote that when running his basketball team he wanted to have “the longest view in the room”. Other teams would often be so desperate to be successful immediately that they would overpay for current assets (players in their prime now) and sell future assets (players who are still developing) on the cheap. Hinkie would be happy to trade away one player who is good today if he could get back two players who would be good in three years’ time.

Having the longest view in the room also helps investors when markets are choppy. Whether it’s rising bond yields, trade wars, inverted yield curves, etc, there will always be new developments to worry about when investing in shares. If you don’t think these developments are relevant to your long-term view of your investments (e.g. what impact does Brexit have on BHP’s earnings?) then you probably should ignore them.

Know when to fold 'em

It is common for investors to get caught in value traps. They buy a poorly-performing stock because they think it’s become cheap, and then the stock continues to perform poorly (think AMP, Telstra, etc).

Being a contrarian investor only works if you hold a convergent view AND you are proven to be right. When your investment thesis is flawed, it’s usually best to cut your losses rather than double down and hope for the best.

Know when to walk away

Your brother-in-law has a hot tip about a penny stock miner?

Know when to run

Somebody on the internet reckons they’ve got a proprietary FX trading system that’ll help you quit the 9 to 5?

You never count your money when you're sittin' at the table

It’s common to hear someone say that they’ve made money in shares, property, etc, but paper gains can’t pay for your next trip to Woolies. If you’re sitting at the table your winnings are at risk, and investors should keep that in mind when evaluating their profits and losses.

There'll be time enough for countin' when the dealin's done

Australia is a nation of punters and it’s all too common to see investors punt with money that’s supposed to fund their retirement or pay for a home deposit.

In his classic Where are the Customers' Yachts?, American stockbroker Fred Schwed opined that the difference between speculators and investors is that speculators try to turn a little into a lot, while investors try to prevent a lot turning into a little.

You can be a speculator with money you’re ok with never seeing again but be an investor with money that you need to last for decades.

 

Nicholas Stotz is a Dealing Associate at prime brokerage firm, Lazarus Capital Partners. This article is general information. 

  •   17 March 2021
  • 1
  •      
  •   
Firstlinks is sponsored by:
banner

Most viewed in recent weeks

It’s time for LICs to die

A high-profile dividend cut and a prominent fund manager’s apology have reignited a long-running debate. If investors can access similar exposures more cheaply and efficiently elsewhere, what exactly is keeping LICs alive?

The retirement scorecard: how many of these questions can you answer?

From the maths of retirement, estimating spending and picking the right asset allocation to survive a poor decade, here are the questions every retiree – current or future – should be able to answer for themselves.

Division 296: the initial moves to make before the windows close

What if the best superannuation strategy isn't about earning more, but acting before your options disappear? Several overlooked planning windows are narrowing, with consequences that can last for decades.

Testamentary trusts: Treasury has picked the wrong reading

A decades-old estate planning tool has survived one tax crackdown only to be caught by another. The surprise isn't who the reform is targeting, but who could end up paying the price for drafting choices made years ago.

Higher yields are creating opportunities in global bonds

Bond markets are adjusting to a new reality, but not in the ways investors expect. With markets repricing and capital competing for attention, investors may need to rethink where resilience and opportunity lie. 

Will investors be better or worse off under new housing tax changes?

Housing tax reforms have sparked warnings of market turmoil and promises of greater fairness. But after modelling nearly two decades of property data, the results suggest winners and losers may not be who many investors expect.

Latest Updates

Superannuation

Superannuation’s structural failings

Politicians are fighting over access to super, but they may be arguing about the wrong thing. The system’s three fundamental flaws have been hiding in plain sight for decades, costing Australians far more than they realise.

Planning

The great wealth transfer myth

Why do some families preserve wealth for generations while others struggle to? As the great wealth transfer unfolds, the determining factor is often not the structure of the estate, but the preparation of those who will inherit it.

Investment strategies

What comes after bank hybrids?

For years, bank hybrids have been a cornerstone of portfolio income. With tens of billions of dollars now disappearing from the market, investors face a critical question: what comes next, and are the obvious replacements enough?

Investment insights from the US

What happens when knowledge becomes a commodity? The latest themes emerging from the US tech sector suggest AI could reshape company moats, disrupt incumbents and create winners and losers in unexpected places.

Investing

Can Berkshire thrive without Buffett?

Warren Buffett's departure marks the end of an era. But the more important question for investors is whether Berkshire's culture, discipline and capital allocation framework can survive without the man who built them.

Retirement

The Bengen 4% Rule: Lost in translation

For years, retirees have been told to focus on withdrawal rates. But the real question is far simpler: how many dollars can you safely spend? The answer may be very different from what conventional retirement wisdom suggests.

Interest rates

Super low interest rates came with side effects

For more than a decade, investors lived through an era of near-zero interest rates. With bond yields now surging, it's worth asking whether cheap money solved economic problems, or introduced a much larger set of risks.

Sponsors

Alliances

  • ASA-Logo-RGB-ActiveGreen-web.png

Site Map

About Firstlinks

© 2026 Morningstar, Inc. All rights reserved.

Disclaimer
The data, research and opinions provided here are for information purposes; are not an offer to buy or sell a security; and are not warranted to be correct, complete or accurate. Morningstar, its affiliates, and third-party content providers are not responsible for any investment decisions, damages or losses resulting from, or related to, the data and analyses or their use. To the extent any content is general advice, it has been prepared for clients of Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892), without reference to your financial objectives, situation or needs. For more information refer to our Financial Services Guide. You should consider the advice in light of these matters and if applicable, the relevant Product Disclosure Statement before making any decision to invest. Past performance does not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation, contact a professional financial adviser. Articles are current as at date of publication.
This website contains information and opinions provided by third parties. Inclusion of this information does not necessarily represent Morningstar’s positions, strategies or opinions and should not be considered an endorsement by Morningstar.