Register For Our Mailing List

Register to receive our free weekly newsletter including editorials.

Home / 399

What Kenny Rogers can teach you about investing

Saturday marks a year since the legendary country singer Kenny Rogers passed away. Although the world has changed dramatically since Ken passed away, there are still plenty of pearls of wisdom (or Aces to Keep) from his most popular song, The Gambler.

You've got to know when to hold 'em

Former NBA General Manager Sam Hinkie once wrote that when running his basketball team he wanted to have “the longest view in the room”. Other teams would often be so desperate to be successful immediately that they would overpay for current assets (players in their prime now) and sell future assets (players who are still developing) on the cheap. Hinkie would be happy to trade away one player who is good today if he could get back two players who would be good in three years’ time.

Having the longest view in the room also helps investors when markets are choppy. Whether it’s rising bond yields, trade wars, inverted yield curves, etc, there will always be new developments to worry about when investing in shares. If you don’t think these developments are relevant to your long-term view of your investments (e.g. what impact does Brexit have on BHP’s earnings?) then you probably should ignore them.

Know when to fold 'em

It is common for investors to get caught in value traps. They buy a poorly-performing stock because they think it’s become cheap, and then the stock continues to perform poorly (think AMP, Telstra, etc).

Being a contrarian investor only works if you hold a convergent view AND you are proven to be right. When your investment thesis is flawed, it’s usually best to cut your losses rather than double down and hope for the best.

Know when to walk away

Your brother-in-law has a hot tip about a penny stock miner?

Know when to run

Somebody on the internet reckons they’ve got a proprietary FX trading system that’ll help you quit the 9 to 5?

You never count your money when you're sittin' at the table

It’s common to hear someone say that they’ve made money in shares, property, etc, but paper gains can’t pay for your next trip to Woolies. If you’re sitting at the table your winnings are at risk, and investors should keep that in mind when evaluating their profits and losses.

There'll be time enough for countin' when the dealin's done

Australia is a nation of punters and it’s all too common to see investors punt with money that’s supposed to fund their retirement or pay for a home deposit.

In his classic Where are the Customers' Yachts?, American stockbroker Fred Schwed opined that the difference between speculators and investors is that speculators try to turn a little into a lot, while investors try to prevent a lot turning into a little.

You can be a speculator with money you’re ok with never seeing again but be an investor with money that you need to last for decades.


Nicholas Stotz is a Dealing Associate at prime brokerage firm, Lazarus Capital Partners. This article is general information. 


Most viewed in recent weeks

Lessons when a fund manager of the year is down 25%

Every successful fund manager suffers periods of underperformance, and investors who jump from fund to fund chasing results are likely to do badly. Selecting a manager is a long-term decision but what else?

2022 election survey results: disillusion and disappointment

In almost 1,000 responses, our readers differ in voting intentions versus polling of the general population, but they have little doubt who will win and there is widespread disappointment with our politics.

Welcome to Firstlinks Election Edition 458

At around 10.30pm on Saturday night, Scott Morrison called Anthony Albanese to concede defeat in the 2022 election. As voting continued the next day, it became likely that Labor would reach the magic number of 76 seats to form a majority government.   

  • 19 May 2022

Betting markets as election predictors

Believe it or not, betting agencies are in the business of making money, not predicting outcomes. Is there anything we can learn from the current odds on the election results?

Keep mandatory super pension drawdowns halved

The Transfer Balance Cap limits the tax concessions available in super pension funds, removing the need for large, compulsory drawdowns. Plus there are no requirements to draw money out of an accumulation fund.

Welcome to Firstlinks Edition 454 with weekend update

Before the last Federal election, these pages were filled with policy discussions and articles generating hundreds of comments as Labor ran a large target agenda. We all know how that ended. Most Australians distrust government and media, and this campaign will be handouts, spin and personality attacks. Will Australia emerge more divided than ever?

  • 14 April 2022

Latest Updates

In praise of our unique democracy and its sausage

For all the shortcomings of our political campaigns, our election process is the best. We are blessed with honest administrators and procedures that we all trust to hand over power peacefully, with a big snag. 

Investment strategies

Is the investing landscape really different this time?

Many market analysts argue that the pandemic has changed everything but we must judge whether the circumstances are as drastic as billed. A quick review of four major events helps decide if this time is different.


Comparing generations and the nine dimensions of our well-being

Using the nine dimensions of well-being used by the OECD, and dividing Australians into Baby Boomers, Generation Xers or Millennials, it is surprisingly easy to identify the winners and losers for most dimensions.


When will I retire? Economic impact of an ageing population

About 39% of the labour force is aged over 45. Intergenerational reports highlight the challenges of an ageing population and the impacts on consumption patterns, dependencies, public finances and economic growth.

The real story behind the crypto crash

The recent sell-off in the crypto market and its trigger - the collapse of the Terra UST coin - has affected many institutions either holding or trading crypto assets, including crypto fund managers.

Investment strategies

Cash is the nightingale, the bird in the hand

The bird in the hand is worth two in the bush, and it's an apt metaphor for investment choices. In 2021, as investors hunted in the bush for decent returns, demand overwhelmed supply. Cash is the bird in the hand.


Book review of 'Putin’s People' and his motivation for war

Author Catherine Belton argues Putin’s sole ambition is to hold onto power. Her book seeks to understand why Putin invaded Ukraine after he became isolated and out of touch with reality during the pandemic.



© 2022 Morningstar, Inc. All rights reserved.

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. Any general advice or ‘regulated financial advice’ under New Zealand law has been prepared by Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892) and/or Morningstar Research Ltd, subsidiaries of Morningstar, Inc, without reference to your objectives, financial situation or needs. For more information refer to our Financial Services Guide (AU) and Financial Advice Provider Disclosure Statement (NZ). 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.

Website Development by Master Publisher.