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Skill Versus Luck

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Five reasons fund managers don't talk about skill

Active funds cost more than passive because the investor is paying for the skill of the manager, so why are fund managers reticent to describe their skill rather than their outcomes. Here are five reasons.

Smart beta funds complement active without key person risk

It is common to see 'smart beta' as the core of a portfolio supported by high conviction active funds, or a core active manager blended with a complimentary smart beta strategy. It also removes key person risk.

Who dares loses: Buffett on luck, taxes and a challenge

Imagine it is 24 hours before you are born and you can set all the rules: any political system, any economic structure, any social edifice. One catch: you don't know which of the nine billion people on earth will be you.

Investment forecasts: foresight or folly?

It's easy to find eminent market experts with completely opposite views on the market at any moment. View the forecasts of investment gurus for what they are: guesstimates. Only you can decide what's right for you.

Unfortunately, all fund manager presentations are good

Part of the fund manager's job is to raise money from investors, and with years of practice, a few good stock stories and an educated guess on the future, it's not hard to present well. That's a problem for investors.

What game is your fund manager playing?

Investors do not ask enough questions of their fund managers before they commit money. It's worth at least knowing whether a long-term view is taken rather than the easier road of jumping in and out of markets.

Investment flows and the trifecta of desire

Investors rarely ask fund managers the right questions, forcing a confusion between selling and investing. The relationship should focus on the long run and eliminate the luck and noise of short-termism.

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This time last year, I highlighted 16 ASX stocks that investors could own indefinitely. One year on, I look at whether there should be any changes to the list of stocks as well as which companies are worth buying now. 

UniSuper’s boss flags a potential correction ahead

The CIO of Australia’s fourth largest super fund by assets, John Pearce, suggests the odds favour a flat year for markets, with the possibility of a correction of 10% or more. However, he’ll use any dip as a buying opportunity.

2025-26 super thresholds – key changes and implications

The ABS recently released figures which are used to determine key superannuation rates and thresholds that will apply from 1 July 2025. This outlines the rates and thresholds that are changing and those that aren’t.  

Is Gen X ready for retirement?

With the arrival of the new year, the first members of ‘Generation X’ turned 60, marking the start of the MTV generation’s collective journey towards retirement. Are Gen Xers and our retirement system ready for the transition?

Why the $5.4 trillion wealth transfer is a generational tragedy

The intergenerational wealth transfer, largely driven by a housing boom, exacerbates economic inequality, stifles productivity, and impedes social mobility. Solutions lie in addressing the housing problem, not taxing wealth.

What Warren Buffett isn’t saying speaks volumes

Warren Buffett's annual shareholder letter has been fixture for avid investors for decades. In his latest letter, Buffett is reticent on many key topics, but his actions rather than words are sending clear signals to investors.

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