I've just posted this reply to the discussion on cuff links . It's awaiting " moderation " .
Will be interested to see if it goes though .
Hi Chris
A link to this article was posted on a property investing forum I am a long term contributor . ( somesoft.com )
I found the article and the subsequent discussion quite informative and have saved it for future reference .
I'm not in a position to comment in an informed way about the actual topic at hand , however I would like to comment on two aspects of your article and I'm surprised that no one has chosen to comment on at least one of them .
Firstly , your choice of investing in coca cola in 1919 as an example on which to build your arguement around . I would have thought this is a good example of one of the main issues facing anyone seeking to back test an approach to share investing and that is survivorship bias .
How many other companies existed in 1919 ? How many of these no longer exist ? In 1919 how would you have know to buy coca cola ?
My second gripe ( a more personal one ) is the putting down of an alternative approach to investing to promote another . The reality is there are many differing ways to invest and used appropriately most of them can succeed . I have spent considerably more time researching share investing than property investing and am yet to make any significant money from shares , however the use of simple use of gearing , support , resistance and trend following has yielded me several million from the property market.
There are times when the stock market will provide better returns than property and the use of funds would appear to be a good way to approach it for those of us without the time of ability to make informed choices for themselves .
For me , the most important decision is when to get in a particular market . In property , I use the ten year average for capital cities and then look at which ever market is underperformance , hence my decision over the last years to buy in Sydney With our last buy being in 2013 .
I note that the ASX is currently underperforming and given that part of my investment strategy is based on a fundament belief that australia , it's economy , it's property and share market will continue to exist and perform well in historical and global terms , then a period of under performance is for me a sign that a period of overperformance is on its way .
Cliff
Will be interested to see if it goes though .
Hi Chris
A link to this article was posted on a property investing forum I am a long term contributor . ( somesoft.com )
I found the article and the subsequent discussion quite informative and have saved it for future reference .
I'm not in a position to comment in an informed way about the actual topic at hand , however I would like to comment on two aspects of your article and I'm surprised that no one has chosen to comment on at least one of them .
Firstly , your choice of investing in coca cola in 1919 as an example on which to build your arguement around . I would have thought this is a good example of one of the main issues facing anyone seeking to back test an approach to share investing and that is survivorship bias .
How many other companies existed in 1919 ? How many of these no longer exist ? In 1919 how would you have know to buy coca cola ?
My second gripe ( a more personal one ) is the putting down of an alternative approach to investing to promote another . The reality is there are many differing ways to invest and used appropriately most of them can succeed . I have spent considerably more time researching share investing than property investing and am yet to make any significant money from shares , however the use of simple use of gearing , support , resistance and trend following has yielded me several million from the property market.
There are times when the stock market will provide better returns than property and the use of funds would appear to be a good way to approach it for those of us without the time of ability to make informed choices for themselves .
For me , the most important decision is when to get in a particular market . In property , I use the ten year average for capital cities and then look at which ever market is underperformance , hence my decision over the last years to buy in Sydney With our last buy being in 2013 .
I note that the ASX is currently underperforming and given that part of my investment strategy is based on a fundament belief that australia , it's economy , it's property and share market will continue to exist and perform well in historical and global terms , then a period of under performance is for me a sign that a period of overperformance is on its way .
Cliff