Register For Our Mailing List

Register to receive our free weekly newsletter including editorials.

Register

1 September 2026

Home / 59

Weekly newsletter to subscribers features important investment insights

Extract from Cuffelinks Newsletter Edition 59

Many of our readers and writers are away at the moment, and Cuffelinks will not be publishing its usual original content this week. However, a couple of articles have come across our desk that deliver insightful Anzac Day reading between two-up throws.

The first is from Howard Marks of Oaktree Capital. He has been writing memos to his clients for 25 years, and the latest asks useful questions for all investors. What do you believe in? What principles lie behind your decisions? Investors should consider:

  • Do efficient markets exist? Is it possible to 'beat the market'?
  • Will you emphasise risk control or return maximisation as the primary route to success?
  • Will you put your faith in macro forecasts and adjust your portfolio accordingly?
  • How do you think about risk? Is it volatility or the probability of permanent loss?
  • How do you view the question of determinism versus randomness or luck?
  • Most importantly, how will you define success, and what risks will you take to achieve it? In trying to be right, are you willing to bear the inescapable risk of being wrong?

That’s a worthwhile list of questions. If we’re going to dare to be great, Marks asserts, we have to dare to be different. And wrong. The April 2014 memo, 'Dare to Be Great II' is linked here.

The second study is the 20th annual Quantitative Analysis of Investor Behavior (QAIB) from Boston-based DALBAR Inc. It claims that while the S&P500 index has risen 9.22% pa over the last 20 years, the average investor has earned only 5.02% pa. DALBAR argues investors are irrational and buy high when markets are strong, and then panic and sell low when markets weaken. Investment returns depend more on investor behaviour than fund performance. They say investor education is failing, because the best advice is to invest more money, hold on to the investments and manage them safely rather than trying to time the market. Focus more on achieving personal financial goals than performance.

While the study has its criticis, it also has valuable lessons, and DALBAR offers a free look at the full report here.

 

  •   24 April 2014
  • 2
  •      
  •   

RELATED ARTICLES

Ben Graham’s three most enduring principles

The ultimate investing hack: dividend growth stocks

The ASX's 16-year drought: a rebuttal

Firstlinks is sponsored by:
banner

Most viewed in recent weeks

Are you making these SMSF mistakes?

After four decades advising investors, there are a few common mistakes I've seen SMSF investors make. From holding too much cash and chasing yield to overtrading and trusting tips. Are these errors costing you?

Why have Australian living standards 'fallen' and how do we fix it?

For the last few years there has been much talk of a 'cost-of-living' crisis in Australia and of 'falling living standards'. Lately this has flared up again with the pickup in inflation resulting in a renewed fall in real wages.

Will you run out of money in retirement?

Fear of running out has become a defining retirement anxiety. Why do some retirees die with substantial wealth while others deplete their nest egg? Evidence suggests the answer is more complicated than we think. 

Four options for an income investor’s next dollar

What if Australia’s golden age of dividends is ending? Rather than overhaul your portfolio, it may be worth considering where new capital can work harder. I discuss four income strategies and the trade-offs behind each.

Retirement spending is not one-size-fits-all

New data challenges the idea that Australians are underspending their super. The bigger issue may be helping retirees navigate complexity, make confident decisions and use their savings to support security, wellbeing and choice.

The missing link in the CGT debate

A little-noticed consequence of Labor’s tax changes could have implications well beyond investors’ tax bills. The issue raises bigger questions about incentives, capital allocation and the drivers of long-term economic growth.

Latest Updates

SMSF strategies

Meg on SMSFs: What do we think about reversionary pensions these days?

Reversionary pensions have long been a staple of SMSF estate planning, but are they still the best option? Meg Heffron revisits a once-clear favourite and asks whether changing super rules have shifted the balance.

The ageing ‘crisis’ has not and will not happen

Rising age dependency is frequently treated as a warning sign for economies. But when actual workforce participation is examined, a strikingly different picture emerges about ageing, productivity and economic sustainability.

Retirement

How does the 4% rule stack up?

The 4% rule has long been retirement's gold standard. But after a difficult period for investors, fresh analysis suggests a more conservative approach may significantly improve the chances of making savings last.

Shares

Four charts that expose market concentration risk

Investors have recently been rewarded for backing market leaders, but history suggests this eventually comes at a cost. Now may be the time to review whether your portfolio is carrying unintended risks beneath the surface.

Investment strategies

The case for gearing beyond property

Most Australians gear into property but ignore shares. That may be a mistake. Used carefully, geared equity strategies can enhance long-term returns, reduce cash tied up in growth assets and support retirement income goals.

Economy

Australia's $1 trillion debt pile

The headlines exclaiming that Australian government debt has hit A$1 trillion and US government debt has hit $40 trillion has turned heads, but how serious are they really? Will Australia's mix of debt create challenges?

Economy

Has 100 years of growth made us any happier?

For decades, GDP has been the benchmark for economic success, but has it made us materially happier? If happiness does not rise in lockstep with prosperity, are we overlooking what constitutes a successful society?

Sponsors

Alliances

  • ASA-Logo-RGB-ActiveGreen-web.png

Site Map

About Firstlinks

© 2026 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.