Kindle Notes & Highlights
Perhaps you don’t need to go to such extreme lengths, but even a simple summary of where you are spending your money each month is a really good starting
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written investment plan.
They can also take out a tax-free line of credit
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blue-chip shares can give excellent growth of up to 20% per annum immediately after a stock-market meltdown and pay very useful dividends too
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Firstly, write down a list of your three biggest phobias, be they public speaking, heights, confined spaces or whatever. Secondly, rationalise the fears by learning about them and getting to
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Dow Theory
sell stops or put options
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Anthony Robbins.
www.hotcopper.com
(www.bwts.com.au)
Gone Fishin’ Portfolio
Kelly Optimization Model
Game of Money,
In reality, a target portfolio such as this can be flexible. If the All Ordinaries index (XAO) surges back up above 6,000, I would become
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Note that such a model is designed to be revisited at least every 12 months or so. If
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My favoured approach would be to invest in other asset classes in addition to property, such as shares (or bonds if you prefer) that pay you money in the form of dividends (or interest) rather than costing you money.
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As property investors, we want to remain invested through as many of these boom periods as we can.
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will be seeking investment-grade units in the blue-chip lifestyle suburbs that have transport hubs or links for easy access to the city.
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It is the combination of LEVERAGE and COMPOUND GROWTH that turns so many ordinary Australians into millionaires
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market, in my opinion, is Michael
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It really can be as easy as that:
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It is important to buy at the right price if this is your strategy, for valuing a block of units is not necessarily as straightforward as valuing an individual unit.
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any given financial year, you can complete a PAYG variation form to reduce your tax deductions.
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Smart investors should find a potential investment and then search for all the reasons they can find not to buy it.
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the values in prestigious suburbs such as Vaucluse and Dover Heights will eventually jump to levels we can’t even think of today. Only
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(Empire
stocks. For one thing, learning to choose our own stocks by starting small is an invaluable way to continue to increase our financial skills and education, it encourages us to learn money-management skills and it helps us to
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If you follow this approach, the portfolio will need to be reasonably diversified
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your own stocks is to read The
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Graham’s preferred approach was a third way. He
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So instead of looking for floundering companies at a cheap price, he focussed on finding excellent companies at a price representing a margin of safety. Therefore,
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This is a useful consideration for market timers, as it may make sense to buy more volatile companies when the market is highly
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There is less risk involved in buying into BHP Billiton at $25 when the market sentiment is despondent than there is in buying in when the market is exuberant and overvalued.
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It is quite clear that if one is able to restrict his or her purchases to a time when the market is truly despondent, the odds of success in the long term are improved immeasurably.
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Set up a low-fee brokerage account.
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Building Wealth in the Stock Market
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Trading competitions have shown that the winners are often those who relentlessly dispose of losing trades quickly.
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By having a prescribed written methodology, he is able to remove emotion from the selling process.
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Choosing a tighter percentage can be a sensible idea.
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Stops cost very little in dollar terms, and can be set automatically on your brokerage account. Alternatively, you can record your sell-stop price and trigger a stop manually, provided that you can trust yourself to execute the stop.
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The Psychology of Investing
Elder1, William J. O’Neill2 and Van K. Tharp3.I
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The Naked Trader by
Read any books you can find by the authors I have referenced in this chapter, such as Dr Alexander Elder, William J. O’Neill and Van K. Tharp. Note one of the common themes throughout most books on trading: fail to
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Construct a written trading plan for yourself. If you are unsure of what needs to be included in a trading plan, go back and re-read this chapter.
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Fees incurred will be paid by the SMSF and are tax deductible within the fund.
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Pooling funds
The administration time involved is minimal when you consider that the alternative might be measured in many years of additional time in the workforce.
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Remember that a line of credit is classified as borrowing rather than income, and therefore is not taxed
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As previously discussed, it is possible to access the unrealised capital gains via a line of credit. By not selling property, capital gains tax is deferred.
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