Register For Our Mailing List

Register to receive our free weekly newsletter including editorials.

Home / 286

Cuffelinks Newsletter Edition 286

  •   28 December 2018
  •      
  •   

Goodbye 2018, it's been a blast: Free ebook and Royal Commission highlights

Our final edition for 2018, and 286th over six years, marks the end of a tumultuous year for financial services. At Cuffelinks, while the Royal Commission provided a deep well of fascinating content, it was overshadowed by the Labor Party policy on franking credits for number of comments and feedback from our readers. 

It's also been a year of rapid growth in reader numbers, with subscriptions up over 25%. We are having a mature conversation with a community of intelligent investors, who prefer to minimise the trivia and noise often presented in other financial media.

 
This week, as well as featuring Warren Bird's selections as Guest Editor (and Warren has been a great supporter from the start), the Cuffelinks team has selected 10 highlights from 2018. We are calling the free ebook, Firstlinks, as all these original articles were published first in Cuffelinks and proved very popular links for our readers.

We have also collected our regular updates on the Royal Commissioninto one article which serves as a time line for the most contentious issues now being considered by Kenneth Hayne.


Summer Series with Guest Editor, Warren Bird

"Cuffelinks started just after I left Colonial First State, where I’d worked for many years with Chris Cuffe. I didn’t know my next career step at the time, but when Graham Hand approached me about writing occasionally for the newsletter, I was happy to accept. I love writing about investing and fixed income in particular. Even though I’ve been back in full-time work for the past four years, I’m glad to continue writing for Cuffelinks. It’s the least I can do for the investment community which has given me so many wonderful opportunities.

Cuffelinks launched with a heavy hitter. Paul Keating, whose views on policy have always been well formed and forcefully argued, provided three articles on superannuation in the early issues. I could have picked any of them as a favourite, but this one on the potential risks that SMSFs could pose to the goals of the super system remains pertinent: Where did SMSFs come from, and where are they going?

Talking about heavy hitters, an article by Bill Gates made its way to these humble pages. He didn’t, sadly, write it for Cuffelinks originally, but it’s an interesting read about what he learned from Warren Buffett (an investor whose initials I think are the best!) Three things I’ve learned from Warren Buffett

For almost four years, I’ve had the pleasure of working with a champion of ethical investing in Australia, Michael Anderson. In his days on the AMP equity team, Michael led the establishment of their Responsible Leaders funds. AMP Capital last year took the bold step of extending ethical principles across all their funds, a decision explained in this article by their current CEO, Adam TindallShould we exclude companies purely on ethical grounds?

Though I’ve been called an evangelist for fixed income, I’ve never argued exclusively for the asset class for the simple reason that this would not be the right thing to do. For most investors, including my own personal investments, a hefty exposure to shares is appropriate. The case for share investing was made well in this Peter Thornhill article earlier this year: Give me the long-term predictability of shares, at any age.

I have to include something from one the smartest – and most decent – people I’ve ever worked with, David Bell. He joined my team at Colonial as a graduate in 1998, and immediately improved the management of the old Colonial Mutual annuity funds that we’d taken over earlier that year. He’s had a stellar career since, and when David writes, I always learn something. This is one of his best, about how he learns from himself as well! Learning from my investment mistake.

Finally, many of you have been kind enough to give me positive feedback about my articles. Thank you. I like doing two things in my writing. One is to present complex ideas in a clear way that helps people understand investing better. The other is to confront what I believe are myths and falsehoods which are all too often presented to investors as facts. My personal favourite, which I think does both, was this piece I wrote about how a portfolio of so-called ‘junk’ bonds doesn’t have to be a junk portfolio – au contraire, they should be a core holding for many investors: Why would you invest in junk?"

Warren Bird, Guest Editor 

Don't forget, if you have something about investing that you want to get off your chest over the holidays, while you have a bit more time, use our Have Your Say section

 

For a PDF version of this week’s newsletter articles, click here.

 


 

Leave a Comment:

banner

Most viewed in recent weeks

Australian house prices close in on world record

Sydney is set to become the world’s most expensive city for housing over the next 12 months, a new report shows. Our other major cities aren’t far behind unless there are major changes to improve housing affordability.

The case for the $3 million super tax

The Government's proposed tax has copped a lot of flack though I think it's a reasonable approach to improve the long-term sustainability of superannuation and the retirement income system. Here’s why.

7 examples of how the new super tax will be calculated

You've no doubt heard about Division 296. These case studies show what people at various levels above the $3 million threshold might need to pay the ATO, with examples ranging from under $500 to more than $35,000.

The revolt against Baby Boomer wealth

The $3m super tax could be put down to the Government needing money and the wealthy being easy targets. It’s deeper than that though and this looks at the factors behind the policy and why more taxes on the wealthy are coming.

Meg on SMSFs: Withdrawing assets ahead of the $3m super tax

The super tax has caused an almighty scuffle, but for SMSFs impacted by the proposed tax, a big question remains: what should they do now? Here are ideas for those wanting to withdraw money from their SMSF.

The super tax and the defined benefits scandal

Australia's superannuation inequities date back to poor decisions made by Parliament two decades ago. If super for the wealthy needs resetting, so too does the defined benefits schemes for our public servants.

Latest Updates

Planning

Will young Australians be better off than their parents?

For much of Australia’s history, each new generation has been better off than the last: better jobs and incomes as well as improved living standards. A new report assesses whether this time may be different.

Superannuation

The rubbery numbers behind super tax concessions

In selling the super tax, Labor has repeated Treasury claims of there being $50 billion in super tax concessions annually, mostly flowing to high-income earners. This figure is vastly overstated.

Investment strategies

A steady road to getting rich

The latest lists of Australia’s wealthiest individuals show that while overall wealth has continued to rise, gains by individuals haven't been uniform. Many might have been better off adopting a simpler investment strategy.

Economy

Would a corporate tax cut boost productivity in Australia?

As inflation eases, the Albanese government is switching its focus to lifting Australia’s sluggish productivity. Can corporate tax cuts reboot growth - or are we chasing a theory that doesn’t quite work here?

Are V-shaped market recoveries becoming more frequent?

April’s sharp rebound may feel familiar, but are V-shaped recoveries really more common in the post-COVID world? A look at market history suggests otherwise and hints that a common bias might be skewing perceptions.

Investment strategies

Asset allocation in a world of riskier developed markets

Old distinctions between developed and emerging market bonds no longer hold true. At a time where true diversification matters more than ever, this has big ramifications for the way that portfolios should be constructed.

Investment strategies

Top 5 investment reads

As the July school holiday break nears, here are some investment classics to put onto your reading list. The books offer lessons in investment strategy, financial disasters, and mergers and acquisitions.

Sponsors

Alliances

© 2025 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.