Hello and welcome to this month's edition of Investment
This month we look back at some bold predictions made by stock
analysts in the Australian Financial Review some five years ago.
The article was titled "Ten Stocks for Ten Years" and
interviewed analysts who suggested ten stocks that investors should
invest in for the next decade. In
this piece from Jim Parker at Dimensional he takes a look at
how these stocks have performed at the halfway mark... without
ruining the surprise for you, the results are not what you would
expect! There are two points which make this article relevant;
number one being diversification and that investing into ten stocks
in the Australian market does not equal diversified, and secondly,
that very few people (other than Mr Parker), would have gone back
to look at the performance of these predictions.
Daniel Minihan, our Director of Wealth Management, has recently
written on this very topic, taking a closer look at the change of
the top stocks in the S&P500. With the U.S. market recently
topping 2,000 points for the first time in history, Daniel's
piece explores the composition of the top ten when it was at 1,000
points. This highlights the risks of having a small and highly
concentrated portfolio, which at face value may seem safe, but in
reality is highly risky. To have a look at Daniel's article,
here. On the topic of diversification, it seems important to
mention that rebalancing should be undertaken at least once a year.
article (and accompanying audio) from the Wall Street Journal,
Jonathan Clements provides three reasons why you should rebalance
your portfolio annually.
An actuarial review of the Invensys Australia Superannuation Fund showed it to be in surplus to the tune of $189.2 million. In mid 2003, the Invensys Group proposed to the trustee that the surplus be repatriated to the principal employer in the group.
Lenders in New South Wales breathed a sigh of relief earlier this month when the Supreme Court ruled in Bank of Western Australia Ltd v. Primanzon  NSWSC 862 that two part-time commercial property investors could not claim relief under the Contracts Review Act 1980 (NSW) because the loans advanced to them were entered into in the course of a trade, business or profession carried on by them.
A key aspect of an innovation culture is keeping it active at all levels of management, from teams to board meetings.
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