by JBS Financial 4:10 am 08 Aug 2017
In order to make your investment decisions, it is important that you consume the right information from the right sources and then take steps towards investing your hard-earned money in a specific investment or range of investment avenues.
Reliability on different sources of information is crucial but too much reliance on one newspaper, online blog or friends or family can prove to be damaging to your portfolio. Just the way diversification helps you get higher returns with less risk, consuming market information from various dependable sources helps you make an informed decision in order to make those intelligent investments.
Deloitte’s ASX Australian Investor Study 2017 report found that most investors are self-directed and choose to conduct their own research. Seeking some form of professional advice (financial planner, stock broker, accountant or lawyer) is the second most popular choice. The below chart shows sources of information used by investors as per household income of those of Australian investors:
It can be seen that the majority of the investors rely on their own research – which makes me think, where are we researching from and how reliable are those sources? The answer to this lies in the type of portfolio you have or the portfolio you want to build based on your investment goals.
For example, it is not necessary that whatever Warren Buffett suggests would be an ideal investment for you, hence there will be little relevance in that news for you because his investment goals can be different from yours.
Similarly relying on the so-called market experts that make headlines would not be recommendable as well. We touched on this in one of our Monday Markets, but to reiterate it, have a look at the below comments that made headlines in the leading financial newspapers at the end of Financial Year 2016:
– ‘Investors are bracing for another year of event-driven volatility on the Australian share market, against a backdrop of subdued growth and earning’
– ‘Parts of the Australian market are already in bubble territory’.
– ‘The Australian market would at best struggle within a narrow range in 2016/2017, caught between bouts of market paranoia and a sobering backdrop of low growth, low inflation, and low returns.’
What happened though? The ASX 200 accumulation delivered a return of more than 13% in the Financial Year 2017!
Some of the reliable sources to stick to would be:
– Your financial adviser
– Proven academic theories that are easily available online
– Company’s financial statements
– Fundamental & Technical Analysis tools
With the advent of real time data and social media, information is available at your fingertips, but the extent to which it can be reliable is still a question.
If you would like to discuss any of the above with us, feel free to contact us. Don’t worry, we are licensed to be reliable!
– Aakash Mehta –
by JBS Financial 12:32 am 01 Aug 2017
When we strive for better outcomes, it is important that we not only reflect on our failures to determine what we could do better but also acknowledge and celebrate our successes.
An important reason to acknowledge our success is it can help us continue to achieve. If we reflect back on what worked well and why, we can often repeat the process and hence continue to benefit over and over again. We essentially develop a formula, a formula for success.
Whatever we want to achieve, whether it be weight loss, debt reduction, reaching savings targets or other goals, it’s important that we reward ourselves when we successfully achieve them. This can be in the form of treats such has having a nice piece of cake after achieving a certain weight goal, or going on a holiday or to a nice restaurant once we achieve our financial goals (just don’t blow the budget and end up back where you started). Using rewards helps build a successful mindset as it creates our drive to really work hard and get to where we want to be.
Good goals are hard to achieve, they don’t just happen, and sacrifices need to be made. The more you reward yourself at the end, the happier you become and the more likely you are to make the necessary sacrifices to get you there. It’s a way to stay sane, think of professional athletes and their cheat meal. Usain Bolt was known to eat 100 chicken nuggets a day.
Finally we don’t need to celebrate on our own. We can share our successes with others, causing them to also feel motivated and allow them to achieve success. It becomes contagious with everyone feeding off other people’s successes. Have you ever noticed how successful people tend to hang out with other successful people?
We may feel that we never ever get to where we want to be. We always strive for more, never satisfied with where we are. While this can propel us to future successful endeavours, the one goal we should all strive to achieve is to be happy. What better way to be happy than to reflect back on our achievements and celebrate the little successes that have got us to where we are today.
– Liam Rutty –
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