I know plenty of people prefer video content when learning so when colleagues at Eviser.com.au (free trial still running) sent me a short video link on “sloth” as an “Investment sin” I did a bit of searching and came across the whole series of these short videos below from Aberdeen Asset Management’s “Thinking Aloud” website I thought they were excellent and worth sharing to Self-Managed Super Fund Trustees. Their preface to the video series says “Don’t be led astray or make decisions for the wrong reasons.” So I encourage new and experienced SMSF Trustees to watch Aberdeen Asset Management’s guide to the seven deadly sins of multi-asset investing narrated by Joanna Lumley below
Multi-Asset Investing – Sin 1: Lust
Tip: Seeking immediate satisfaction can encourage impatient and shortsighted behavior. While a short-term view has its place, an overall less lusty approach, weathering up’s and down’s, can prove to be more fruitful in the long term.
Multi-Asset Investing – Sin 2: Gluttony
Tip: When it comes to information, less is very often more. Having the discipline to screen out market noise is likely to be key to rich investment pickings.
Multi-Asset Investing – Sin 3: Greed
Tip: Whether its equities, bonds or property, if everyone is rushing to invest, it’s probably best you don’t. The greed of the herd should always be treated with caution, take a breath, be patient. It may take a while for others to come round to your point of view, so wherever you invest, invest for the right reasons.
Multi-Asset Investing – Sin 4: Sloth
In investment, there are few shortcuts. Understanding what you’re investing in means doing the hard work, even though it’s rarely the quickest way. Only once due diligence has been done, can you truly rest comfortably.
Multi-Asset Investing – Sin 5: Wrath
Tip: When markets are plummeting and everyone is selling, it’s easy to panic, but if your portfolio is properly diversified, you can afford to be an oasis of calm. Keep a portfolio of varied assets, and you’ll be able to withstand the wrath and unpredictably of the markets.
Multi-Asset Investing – Sin 6: Envy
Tip: Imitating the index is the poorest form of flattery. Benchmark hugging is driven largely by fear. Instead of investing in assets which have just done well in the past, you should invest in those that offer the best potential for future returns.
Multi-Asset Investing – Sin 7: Pride
Tip: As we know, pride can become before a fall. Overconfidence and ignoring the warning signs can be fatal. Investors often make the same mistakes over and over again.
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Liam Shorte B.Bus SSA™ AFP
Financial Planner & SMSF Specialist Advisor™
Tel: 02 98941844, Mobile: 0413 936 299
PO Box 6002 BHBC, Baulkham Hills NSW 2153
5/15 Terminus St. Castle Hill NSW 2154
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