Cuffelinks' mantra is “Connecting investors with ideas” and the newsletter has certainly lived up to it over many years. When Graham asked me to pick five articles, it was like being asked to pick the best wines – no one will agree. Picking the best wine depends on individual palates, the region, the grape variety, the acidity, the alcohol content, to name a few factors. Picking the best articles depends on whether you like equities, bonds, property or a combination, are you new to investing or sophisticated, what’s your risk appetite, do you study the markets or are you a day trader.
I like to be challenged, I like innovation and I like looking over the horizon. I also like learning from history. The articles I have picked from the Cuffelinks vault reflect this.
Howard Marks on risk and how to handle it: Howard Marks has an amazing insight into the markets with US$100 billion under management. He consistently talks about risk. Whilst this article is a summary of a slide presentation in 2014, the message is timeless. As Howard said about risk: “something to be managed and controlled, not avoided”.
My 10 biggest investment management lessons: Despite this article being written by Chris Cuffe for his own newsletter, I have a huge respect for Chris and what he has achieved in funds management. I have no doubt part of his success is that he lives and breathes these simple but insightful lessons. Many people make investing complicated but when you cut through the hype and euphoria, whether in a bull or bear market, all investors whether new or sophisticated, should never lose sight of the basics.
Business model disruption has barely begun: Parts 1 and 2: We are in a world of enormous change and disruption. Hamish Douglass’ articles provide an insight into the world of disruption and how companies old and new are adapting.
The evolution of Listed Investment Companies: Whilst LICS have been around since the 1920’s, the last few years has seen an explosion in the number of LICs and acceptance as a legitimate investment option by institutions, SMSFs, and mum and dad investors. Written four years ago, Chris Stott’s article concludes, “I believe that the momentum gained in recent years has scope to continue given the thematics for the sector.” Well, he certainly got that right.
Real estate social infrastructure coming of age: At Folkestone, we believe that real estate social infrastructure is a legitimate investment option. Adrian Harrington’s article back in 2015 (please excuse the self indulgence!) defined what comprises real estate social infrastructure, the drivers, the risks and different investment options. In recent years, both institutional and retail capital has flowed into this sector and childcare, seniors housing, student accommodation, health and medical facilities and government assets are no longer seen as the poor cousins to office, retail and industrial assets.
Greg Paramor, Guest Editor
Greg Paramor is Managing Director of the listed property group, Folkestone (ASX:FLK). He is a past President of the Property Council of Australia and was awarded an AO in January 2015 for services to the not-for-profit sector and the real estate industry.
On our website, we also feature tables courtesy of Morningstar with performance over 2017 and longer across all major asset classes, plus the annual 'Gameboard' which is a wonderful illustration of how the winners and losers by asset class vary each year (see article for larger version).
Edition 236 | 24 Jan 2018 | Editorial | Newsletter