As investors, we are making what can ultimately only ever be probabilistic choices in a highly uncertain world. There is very little, if anything, we can properly take for granted.
The Price Report
On Tuesday 21 June at 10.30am I will be hosting the next quarterly strategic review for The Price Report.
It’s quite possible that a decision to leave the EU would hurt rather than boost my fortunes. But there’s more to life than money.
Whether you’re a value investor or a trend-following trader, sound investment principles aren’t difficult to understand – just difficult to implement.
It’s impossible to follow the investment markets without coming across narratives. The problem is that most narratives reported by the financial media are false.
If you seek superior investment returns, you need some kind of edge. And if you don’t know precisely what your edge is, you do not have one.
The returns from stockmarkets are often overstated. Even the US market, one of the best performing stockmarkets of the last century, has suffered from long periods in the doldrums.
There are two components to the return from listed shares. Dividend income is one. Share price growth is the other. Over the last century, the annualised real return from owning UK shares has been approximately 5%. Probably a little over half of that return has come from compounding dividend income – so if your share portfolio doesn’t yield anything, you are probably fighting a losing battle.
This affordable alternative to Berkshire Hathaway has, amazingly, outperformed it over the past 30 years.