Smarter Investing: Simpler Decisions for Better Results (Financial Times Series)

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Shows how much things have changed, I think you’d struggle to get 2% real in short term ILG’s. The last graph I saw had -2% real for short term ILGs trending up to about 0% real long term.

Today we’ll start work on the book which seems to be the most popular with passive investors – Smarter Investing by Tim Hale. Perhaps the pith of Smarter Investing could have been dealt with in a slim volume. I wouldn't say the rest is repetition though. The arguments and sources are all there, and some more detail on the theory which I thinks he says is optional. He cites doubts over the counter-party risk and conflicts of interest that may compromise the structure of Exchange Traded Commodity (ETC) funds run by large investment banks. Euan joined the Albion team in 2023 after completing his MSc in Financial Modelling and Investment from the University of Glasgow. Before that he completed his undergraduate degree in Mechanical Engineering but decided to follow his passion for investing and pursue a career in the investment industry. He finds the systematic, evidence-based approach to investing adopted by Albion to be a sensible and straightforward way to invest. He looks forward to learning more about the methodology used and putting his skills to use to help clients.

Emotions play an important role in making decisions. In fact, research has shown that emotions are essential for making decisions. If you would not experience emotions because of brain damage, you could not make any decisions. However, it is important to be aware of the influence your emotions have on your investment performance.

The aggressive equity portfolio has an expected return of 6% pa with a 20yr chance of loss of 1 in 10 (10%). Indeed given the paucity of UK books on passive investing, it’s worth us taking a detour to see what else has gone walkies from the 1st edition. First edition Smarter Investing We all have a born tendency to avoid risk. This fear was very useful in prehistoric times. In those times there was danger everywhere. It would have been better to run away to many times than to be grabbed by a sabre-toothed tiger. Fortunately, there are no more dangerous tigers lurking in today’s society. Why should you invest?At a minimum, investing allows you to keep pace with cost-of-living increases created by inflation.At a maximum, the major benefit of a long-term investment strategy is the possibility of compounding interest, or growth earned on growth.

active funds charge a percentage of assets under management, and so marketing is more important than performance Andy – he seems to be saying 6% for equities and 1% for bonds, both after inflation. That is my reading of his tables. Not sure what the previous version had?

practical ways of being an efficient (“good”) investor, including guidance on products and advisers Not only will this approach give you an easier life, Tim believes that it will also maximise your success. In 2001 he set up Albion Strategic Consulting, helping financial planning firms to develop their investing methodologies. Aims of the book In other words, he does a great job of trying to stop investors anchoring themselves to a notional number peddled by a calculator, brochure, or book. He loves working with Albion’s clients and takes immense pleasure in seeing them develop and grow, in the knowledge that Albion has played a small part in their success. Like the other team members, he loves investing and likes nothing better than a piece of deep research.

I would argue that it’s possible to take short-term (less than a year) positions with good odds and moderate payouts, but it’s clearly not for everyone Most advise not to waste time and get started, but I can't help feeling the need to know more before I part with any of my hard earned (after making a big loss on the only share I've ever bought). Hale has also downgraded the return expectations for his range of model portfolios that form the centerpiece of the book. The effect is most pronounced on portfolios with a heavy bond allocation, but the drag was enough to make me wince even on a 60:40 equity/bond allocation. Tesco Mobile is to start charging new and recently joining pay-monthly customers to use their mobiles in Europe from 2024. Tim says that when he was writing the book, his friends and colleagues asked him to keep it short, since they didn’t have much time.

If you've got a Marcus easy-access savings account or cash ISA, you can easily boost your interest rate to 4.75% – here's how. I must say I had forgotten that he recommended the short dated UK index linked gilts for the more conservative portfolios.

and to keep your costs down (( Tim doesn’t mention being tax-efficient, which can be just as important )) So much for an AVC, but what about an ISA? If the Chancellor were to permit transfers from S&S ISAs to Cash ISAs, would it be wise to sell bonds and go to cash?