Centre for Self-reliance. Investment.

Just like you do not need to code in order to use a computer, you do not need to understand the principles of investing in order to invest. I would suggest that learning how to read balance sheets and P&L’s is a waste of time because what is published and gets to you is the ultimate in fake news. 

There are only three things in which you can invest. Cash, Property, Equities.

Having done your environmental analysis you will know that interest rates are around zero and it is predicted they will follow Japan and Europe into negative territory. This means you will pay the banks to look after your money. 

We have shown that residential property has become a poor long term investment, unless you just happen to buy the right house in the right street. 

Equities are having a bad time at the moment but that will pass. So the question is how do you invest in equities without being able to get access to the boardrooms of the world and develop all the skills required.

The answer is simple and that is to look at it as an HR problem not a financial problem. Your job is to pick your advisors not stocks.

Having said that, as a small business operator I would never employ someone to do something I wouldn’t or couldn’t do. Therefore it is necessary for you to understand how, why and where to invest before you outsource it to a professional.

There are hundreds if not thousands of advisors out there so how do you narrow the list.

I would start with Stephen Covey’s first two rules of empowerment. Make sure they have the ability and the integrity to do a job for you.

Structure.

The first thing to look at is their structure. How do they collect the funds. Is the fund open or closed. All sorts of questions need to be answered. 

The structure of the fund will indirectly tell you about their integrity. You need to drill down into all the fees.

Performance. 

It is not easy to define the performance of the simplest entity these days. Are the figures net of fees, and if they are is that all fees or just management fees?

People.

As with most things it really comes down to the people. 

Below is a list of the type of people you should employ. They all have difference views of the world, different objectives and therefore different plans.

Mary Manning. https://www.youtube.com/watch?v=L8-q4po9dUA&feature=youtu.be

Paul Moore http://www.pmcapital.com.au/insight/one-chart-typifies-current-market-conditions

Sebastian Evans http://blog.naos.com.au/news-media/comsec-executive-series

Jamie Nicol  https://dnrcapital.com.au/individual-investors/hci-investor-managed-fund/

Jason Beddow. https://www.argoinvestments.com.au/shareholder-centre/annual-general-meeting

Bob Becker https://www.argoinfrastructure.com.au/