Make More Money Like This…

Investment Perspective – December 2017

Peter Flannery CFP AFA

“Neither the investing method nor the fundamentals of the business are right or wrong because the mood of the market is favourable or unfavourable toward the “stock”. That is because when you really think about it, “stocks” (shares) are all about the financials and the trading price, the share price… the cash up value. What matters more is the economics of the business” 

Peter Flannery

 

Most investors seek to maximise their return on investment.  I bet you are no different.

Whilst there are plenty of risky investments that anyone can unwittingly fall victim to, sometimes the biggest risk is you and I!

I know it doesn’t sound “cool” or “now” to follow a sound methodology and apply discipline to it.  Regardless, it helps … a lot.

 

Beware the distraction

Let’s face it, there’s always someone else who is faster, smarter, better looking, richer, luckier, travelled more, having more fun …

Also, for those who are forever looking for the quick fix, the king hit, the easy money without much time and effort, there’s always another thing to jump onto.  Sometimes those “bright shiny new objects” can be useful, however, often they are just … a distraction.

The problem with distractions is that they cost.  Not only in terms of time, effort and interruption but also, at times they are just not the right thing to invest in.

There has been countless examples in history.  Whether it’s gold, silver, kiwifruit, ostriches, land speculation … you get the point.

The latest distraction would be crypto currency. 

Block chain technology though does look promising.

 

Does investing in crypto currency have merit? 

Now that’s a big question.  I’ll let you ponder that one and get back to you in 2018 with my answer.

In the meantime, despite elevated prices and the challenge of finding suitable businesses at favourable prices in which to invest, as investors we remain focused on our mission to remain true to the methodology, applying the appropriate discipline, regardless of those, at times, annoying and compelling distractions.

The intrinsic value of a business is neither annoying or compelling … it is what it is and that’s good enough for us because it’s real and it’s reliable.

 

“The dumbest reason in the world to buy a stock is because it is going up.“

                                                              Warren Buffett 

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