Friday, March 09, 2007

Charles Schwab's Investment Advice:

In a recent interview in Money Magazine Charles Schwab offers the following advice:

"You've got to understand that markets go both ways, up and down. Over longer periods, stocks generally have always gone up. But any specific stock may never come back.

Buy an index fund, and you're going to have long-term growth almost to a certainty. Buy an individual stock, and you never know. You could go to zero.... "

Read the whole interview here.

My advice remains the same:

  • Markets Work: it is better to be properly invested in the market than to try an out-perform the market by stock-picking and market-timing;
  • Returns are related to risk: investment portfolios should be created to reflect the appropriate level of risk for the individual investor;
  • Diversification is essential: both across asset classes and within asset classes;
  • Long-term investment performance is explained by portfolio structure...

I believe that I now have some of the best investment portfolios available in Australia and can offer them to investors, for investments inside or outside superannuation, with flat-fees that are competitive with Industry Superannuation Funds and way below the best retail pricing.

Call me on (02) 9345 0011 or 0402 466640 to discuss...