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John Rekenthaler

Warren Buffett's sweetest investment

One of Buffett's most successful investments has been a confectionery company that he bought more than 50 years ago. The investment demonstrates that stocks need not be growth companies to create fortunes.

Should you buy and hold an Artificial Intelligence portfolio?

For those with the patience to own an investment as volatile as the AI sector, buying and holding a stock basket might make sense. However, based on internet stocks’ history, you need not rush to do so.

Stocks don't always beat bonds

Stocks always outperform bonds in the long-term, right? New research challenges that assumption, raising questions about historical financial data, and forecasts for future performance from the two largest asset classes.

Should retirees forget about the 4% withdrawal rule?

When evaluating investment yields or retiree-withdrawal rates, consider not only the numerator’s percentage, but also the denominator’s effect. Doing so will lead to the only path that truly matters: the dollar trail.

Four stages of a typical bear market - but is this typical?

Bear markets caused by recession fears follow a pattern, but we have never seen anything like coronavirus. If financial stimulus and medicine prove ineffective, all bets are off. 

Mr Market isn't so foolish, after all

The story of Mr Market originated with Ben Graham and was further popularised by Warren Buffett, but does it still hold true? Based on experience, the two-investor scheme looks hopelessly oversimplified.

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Retirement

Supercharging the ‘4% rule’ to ensure a richer retirement

The creator of the 4% rule for retirement withdrawals, Bill Bengen, has written a new book outlining fresh strategies to outlive your money, including holding fewer stocks in early retirement before increasing allocations.

Shares

Are franking credits worth pursuing?

Are franking credits factored into share prices? The data suggests they're probably not, and there are certain types of stocks that offer higher franking credits as well as the prospect for higher returns.

Retirement

Inflation cruels a comfortable retirement

ASFA’s latest estimates reveal that home-owning couples need at least $690,000 in super for a ‘comfortable’ retirement, yet only around 30% of people meet these thresholds, and the shortfall may deepen.

Australia’s sleepwalk into a damaged society

The role of family and community as foundations of a healthy society have been allowed to weaken. This has brought about Australia's spiritual decline and a thirst for dopamine that explains our high debt levels.

Investment strategies

The simplicity of this investing method hides its power

Despite the perception that successful investors nimbly navigate each zig and zag in the market, the evidence suggests otherwise. This approach can help an investor avoid self-harming their returns.

Investment strategies

Four ways that global investors are reshaping their US exposure

It wasn't long ago that investors were asking if US exceptionalism could continue. They now appear to be diversifying away from dollar assets and shifting to a more active US equity allocation.

Investment strategies

The case for high yield bonds

This is a primer on high yield bonds - their risk and returns compared to investment grade securities, diversification benefits, and strategies for selecting high yield investments for enhanced portfolio yields.

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