Register For Our Mailing List

Register to receive our free weekly newsletter including editorials.

Home / 234

Welcome to the Summer Series 234 with Guest Editor, Noel Whittaker

  •   12 January 2018
  •      
  •   

At a time when we are overwhelmed with information, getting back to basics is crucial. This desire to focus on the fundamentals has guided the selection of my favourite five Cuffelinks articles from last year.

Whenever I give a seminar, many of the questions are from people who want to know where the stock market is going, where interest rates are going, where commodity prices are going and where they should invest next. My reply is always that if they focus on things they can control, they won't need to be unduly worried about things they can't.

This is why the article on Howard Marks is important. It goes right back to basic principles, explains the dangers of forecasting, and how many of them are wrong.

This leads naturally to the next article by Don Stammer. Just before the 2016 presidential elections, I received many emails and calls from people telling me proudly they had cashed in their portfolio "in case Trump got elected". And we know what a bad decision that turned out to be.

In my 20 Commandments of Wealth for Retirees (also available as a PDF by free download from my website) I point out that one of the worst enemies of the investor is the media – it only focuses on bad and pessimistic news.

The Labor attack on family trusts showed a deplorable lack of knowledge about how they work. It also had the potential to scare people away from what has long been one of the most attractive and effective entities for minimising tax legally, and protecting assets. Therefore, Sam Wylie’s article was timely inasmuch as it explained in a simple way how trusts work and the benefits they could bring to investors.

As I have said many times, the main enemy of an investor is not the markets or taxation, it is simply ignorance. Having reached the ripe old age of 78, my focus has moved from acquiring assets for myself to spending my money in a way that enables me to leave a legacy. And all the research shows that giving money to worthy causes produces enormous personal happiness and satisfaction.

After I read the article by Antonia Ruffell, I phoned Chris Cuffe for advice on what my next step should be. This led me to a meeting with Antonia, and subsequently to starting my own endowment fund. I am delighted with the process.

We are now 30 years from the 1987 crash. For many of us old grey hairs it is still memorable, but most Australians who have reached investing age know nothing about it. Ashley Owen has been a friend of mine for many years, and is one of the most knowledgeable people about markets I have ever met. This article is an outstanding contribution to the pool of knowledge that any successful investor needs to have.

Noel Whittaker, Guest Editor


Noel Whittaker is one of Australia's foremost authorities on personal finance and a best-selling author of many books including Making Money Made Simple. See www.noelwhittaker.com.au. 

This week's White Paper from Legg Mason's Western Asset Australia looks at where market returns may be generated in 2018, including a great chart of five-year correlations between different asset classes in Australia.

 

Edition 234 | 12 Jan 2018 | Editorial | Newsletter

 


 

Leave a Comment:

banner

Most viewed in recent weeks

Which generation had it toughest?

Each generation believes its economic challenges were uniquely tough - but what does the data say? A closer look reveals a more nuanced, complex story behind the generational hardship debate. 

Maybe it’s time to consider taxing the family home

Australia could unlock smarter investment and greater equity by reforming housing tax concessions. Rethinking exemptions on the family home could benefit most Australians, especially renters and owners of modest homes.

100 Aussies: seven charts on who earns, pays, and owns

The Labor government is talking up tax reform to lift Australia’s ailing economic growth. Before any changes are made, it’s important to know who pays tax, who owns assets, and how much people have in their super for retirement.

The best way to get rich and retire early

This goes through the different options including shares, property and business ownership and declares a winner, as well as outlining the mindset needed to earn enough to never have to work again.

A perfect storm for housing affordability in Australia

Everyone has a theory as to why housing in Australia is so expensive. There are a lot of different factors at play, from skewed migration patterns to banking trends and housing's status as a national obsession.

Chinese steel - building a Sydney Harbour Bridge every 10 minutes

China's steel production, equivalent to building one Sydney Harbour Bridge every 10 minutes, has driven Australia's economic growth. With China's slowdown, what does this mean for Australia's economy and investments?

Latest Updates

Economy

Why we should follow Canada and cut migration

An explosion in low-skilled migration to Australia has depressed wages, killed productivity, and cut rental vacancy rates to near decades-lows. It’s time both sides of politics addressed the issue.

Investing

Simple maths says the AI investment boom ends badly

This AI cycle feels less like a revolution and more like a rerun. Just like fibre in 2000, shale in 2014, and cannabis in 2019, the technology or product is real but the capital cycle will be brutal. Investors beware.

Property

Australian house price speculators: What were you thinking?

Australian housing’s 50-year boom was driven by falling rates and rising borrowing power — not rent or yield. With those drivers exhausted, future returns must reconcile with economic fundamentals. Are we ready?

Shares

ASX reporting season: Room for optimism

Despite mixed ASX results, the market has shown surprising resilience. With rate cuts ahead and economic conditions improving, investors should look beyond short-term noise and position for a potential cyclical upswing.

Property

A Bunnings play without the hefty price tag

BWT Trust has moved to bring management in house. Meanwhile, many of the properties it leases to Bunnings have been repriced to materially higher rents. This has removed two of the key 'snags' holding back the stock.

Investment strategies

Replacing bank hybrids with something similar

With APRA phasing out bank hybrids from 2027, investors must reassess these complex instruments. A synthetic hybrid strategy may offer similar returns but with greater control and clearer understanding of risks.

Shares

Nvidia's CEO is selling. Here's why Aussie investors should care

The magnitude of founder Jensen Huang’s selldown may seem small, but the signal is hard to ignore. When the person with the clearest insight into the company’s future starts cashing out, it’s worth asking why.

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.