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How share buybacks boost the US market

Stock buybacks improve earnings per share, making it look like better company performance. In the US, if buybacks stop for any reason, both management and investors alike will have to shift earnings per share expectations downwards.

Investor questions for marketplace lenders

Marketplace or peer-to-peer lending is well established overseas and growing rapidly in Australia, but investors should understand the risks and the returns, as described in the first part of this debate.

How is 2019 different from 2018?

The rise in bond rates in the US in 2018 has tilted investment opportunities away from the easy choice of collecting higher dividends on shares, and now, greater prudence is required.

Don't overlook the quality in consumer staples

Among the focus on tech stocks and healthcare sectors, the quality in consumer staples stocks tends to be overlooked, but these are the companies we continue to buy from in all economic circumstances.

Identifying value for money in active management

Many active managers are closet indexers. The real cost of forcing a skilled manager into a low tracking error is the limit to the upside.

Sustainable investing focuses on the future

A better approach to sustainable investing is to actively select for better ESG scores and identify companies with a positive impact. Fund managers have an important advocacy role.

There’s more to bonds than buy and hold

Bond investing is not only buy and hold and traditional return sources such as income, changing yields and duration. Relative value identifies market inefficiencies and uses risk management techniques in all market conditions.

2018: an SAA odyssey

The movie, 2001: A Space Odyssey, not only took a journey into the future, it glimpsed many technologies that are now with us. It’s time to look ahead to future asset allocations.

Rising bank funding costs driven by liquidity not credit

The bank bill/OIS swap rate may seen arcane but if it stays at current elevated levels, it may increase rates for borrowers in the same way as an increase in cash rates by the Reserve Bank.

Currency risk deserves more than a coin toss

Many investors in global portfolios overlook the currency exposure and should consider leaving hedging decisions to specialists. There is no single optimal hedging strategy as conditions vary over time.

Does fixed income diversify portfolio risk?

Investors shouldn't automatically assume the inclusion of bonds in a portfolio provides diversity against their equity exposure, as correlations can change in volatile markets.

Quality ingredients improve both cooking and investing

Home cooking and value investing have much in common. While it takes more time and effort to carefully assemble the right ingredients, the results can pay off over the long run.

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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.

The nuts and bolts of family trusts

There are well over 800,000 family trusts in Australia, controlling more than $3 trillion of assets. Here's a guide on whether a family trust may have a place in your individual investment strategy.

Welcome to Firstlinks Edition 583 with weekend update

Investing guru Howard Marks says he had two epiphanies while visiting Australia recently: the two major asset classes aren’t what you think they are, and one key decision matters above all else when building portfolios.

  • 24 October 2024

Warren Buffett is preparing for a bear market. Should you?

Berkshire Hathaway’s third quarter earnings update reveals Buffett is selling stocks and building record cash reserves. Here’s a look at his track record in calling market tops and whether you should follow his lead and dial down risk.

Preserving wealth through generations is hard

How have so many wealthy families through history managed to squander their fortunes? This looks at the lessons from these families and offers several solutions to making and keeping money over the long-term.

A big win for bank customers against scammers

A recent ruling from The Australian Financial Complaints Authority may herald a new era for financial scams. For the first time, a bank is being forced to reimburse a customer for the amount they were scammed.

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