After six consecutive years of positive returns, in 2018 the UK stock market declined by 9.5%, while the global stock markets declined by about 3%. A careful observer might argue that a ‘correction’ was long overdue, given the generous return of prior years. However, that hasn’t...
As we’re sure you know by now, diversification is a hallmark of our investment, not just across asset classes but also across geographies and risk factors. We implement this idea is through diversification: Across global mainstream stocks, bonds and property shares (known as Real Estate...
In this book, Dr Crosby examines the human behavioural tendencies that often get in the way of investment success. Crosby analyses sociological, neurological and psychological conditions that influence our investment decisions and provides practical solutions for resolving these issues. The Behavioral Investor then transfers these lessons...
In the following video, Dimensional founder David Booth reflects upon decades of experience of operating in the capital markets to explain a valuable point regarding many of the issues we’ve discussed in this newsletter. As long-term investors, we try to ignore the ‘noise’ emanating from the...
This year marks the 10th anniversary of the collapse of U.S. investment bank Lehman Brothers. The run on the bank, previously seen as indestructible, sent shockwaves through global markets, sparking a series of event from which we have yet to properly recover. Financial journalist Jason Zweig...
We are often asked about the reasoning behind our investment approach and although related to a different field, we feel the following tale perfectly illustrates our philosophy. In the early hours of a December morning in 1799, physicians were called to examine a recently retired gentleman...
Is the world getting better or worse? You’d be excused for answering with the latter, especially considering the nature of global events covered in the media. When asked simple questions about global trends e.g. why the is the world's population increasing, how many young women go...
This year marks the tenth anniversary of the failure of the U.S. bank Lehman Brothers. Following the collapse, a tsunami struck the global financial industry. In this video, legendary investor Warren Buffett explains what was behind the 2008 disaster and what we can do to limit...
Grace Groner lived an ordinary life. She became an orphan at the age of 12 and was taken in by a member of her small farming community. She never got married or had kids. While she travelled extensively, Grace never owned a car and she...
A recent article in the Guardian highlights one of the major failings of the investment management industry: the Standard Life GARS fund The largest actively-managed fund in the UK manages over £20billion in assets, however its ‘ridiculously complex’ structure has undermined its value. Over the past...