Changing Life & Wealth
Valuable Know-How for DIY Investors
Why Do This?
Discover the 3 most common reasons from our members.
Because the facts say you can do better easily.
Evidence supports attaining know-how to be 'consistantly' a good investor is key. Here are examples;
Share investors average returns.
1. DALBAR Inc: Study
Quantitative Analysis of Investor Behaviour:
20 years S&P 500 Share Index = 11.9% p.a.
Yet the average investor actually received = 3.9% p.a
Managed fund investors fared no better.
2. Morningstar Research over 5 year period
200 Australian Equity Growth Funds = 12.5% p.a
Yet the average investor actually received = - 2.2% p.a.
Why? Buying and selling based on emotive reactions to the state of the 'market' and what they thought would happen in the future.
3. Residential real estate. One of the worlds longest, biggest and irrational property booms in world history was in Australia. It ended a few years ago. Using the 5 year average return acheived at the peek of this boom noted below, versus the price increases of the biggest lenders to these buyers (ANZ,NAB,CBA,Westpac) over the same period. If you were a 'believer' in property you faired better loaning money to property buyers. Not in owning the property itself. In other words in the gold rush of the 1800's you did better selling beer, picks and shovels to miners, not being a miner.
Property Primary Lender Banks Returns
National average 12% 22%
Melbourne 8% 25%
Brisbane 6% 18%
Sydney 17% 17%
Clearly there has to be a better way to approach investing and managing one's wealth.
There is.......
