Thank you, DeeKie. I enjoy writing them, even the painful ones.I love reading your posts Colm.
Yes, I did attend the AGM and I did ask my question. To be honest, it was more a statement than a question. I wrote down what I planned to say in advance, and here it is:I’m curious as to whether you got to ask the questions that you wanted answered at the Reinshaw AGM?
You raise an interesting question. I'll deal first with the specifics of Ryanair and Tesla.I'm just wondering to what extent ethical considerations inform your investment considerations. Personally, in view of climate change challenges and especially given your very concentrated portfolio, I would not be comfortable shorting Tesla or holding Ryanair.
I dont think "ethical investing" will make one jot of difference, because if you dont invest in ryanair someone else will and its not really investors that are driving ryanair, its demand by consumers and whether they worry about global warming or not they are still going to fly on budget airlines. In actual fact I think "ethical investing" is really about reducing your guilt and trying to gain the high moral ground without making any massive changes in your lifestyle. You can sort of wear it like a badge of honour well I can still fly to spain on my holidays because I have some ethical investments and have paid for a few trees to be planted somewhere to allow me to continue with my current lifestyle.Hi Colm,
I was very struck by David Attenborough's speech in Poland yesterday. I'm just wondering to what extent ethical considerations inform your investment considerations. Personally, in view of climate change challenges and especially given your very concentrated portfolio, I would not be comfortable shorting Tesla or holding Ryanair.
Hi Sarenco. I'll come back to you in due course on the performance of my portfolio versus the MSCI World Index, but it's important not to lose sight of the wood for the trees. The most important point by far is that I'm now "retired" for eight years and I am 100% (plus, but forget about the plus!) invested in equities. A significant proportion (the vast majority?) of financial advisers would regard that as anathema for someone my age. They would have me invested primarily or exclusively in bonds and cash for the entire period since my retirement (and probably for a number of years previously, through so-called "lifesyling"), either directly or through an annuity (which is invested completely in bonds). If I had followed their advice, I would be lucky to have earned 2% a year - before charges - on my money. The difference between 2% and 10% a year for the last 8 years equates to 97% of my starting capital. In other words, I have almost twice as much money now (ignoring what I've drawn down in the meantime) as I would have if I had followed standard financial advice for people in my position.I think it's worth noting that, in Euro terms, the MSCI World index was only down around 3.5% over the same three-month period and produced an annualised total return of around 10% over the last five years
You mention back-testing the last 118 years for the UK stock market and over the last 92 years for US stock market, but where is that data? How would a person 100% invested in equities who retired on the eve of a lengthy bear market in 1929 or 1966 have fared using your approach?From a historical perspective, the 1966 through 1982 Secular Bear Market was the third one we have had since 1900 and was not overwhelming in terms of loss, it simply meandered sideways virtually going nowhere for 16.5 years.
The Dow Jones Industrial Average lost 1.18% per year over the course of this secular bear market
I quote from paragraph 8 of the submission:There is a massive recency bias in this paper
Hi Sarenco. As I said earlier, how I get my equity exposure is secondary to the main issue of getting such exposure (or exposure to other real assets), but we've already discussed that in #428 above.I appreciate that index investing is anathema to Colm but I think it's worth noting that, in Euro terms, the MSCI World index was only down around 3.5% over the same three-month period and produced an annualised total return of around 10% over the last five years.
Colm,Duke. I normally agree with you, but not this time. If I buy shares in a company, I want it to succeed. I don't want BadCo to succeed, so I don't buy shares in it. At an individual level, you can say that my decision doesn't matter a whit, but at a macro level, it does....