Education and Investing

By Jason Fittler

It costs a lot to get an education, but more if you do not have one.

A little knowledge will more often than not get you into trouble. In our world it seems little value is placed on knowing all of the facts, as technologies improve we are able to communicate more often and at the same time provide more information.

The problem is we do not have time to read and understand the information. More is not always better.

As such we have become accustom to making decisions on the back of snippets of news, headlines or summaries of information. Without realising it, we make misinformed decisions, form opinions and take actions based on this lack of knowledge. Quite often this leads to loss of money, time and emotions.

The answer is simple, stop trying to understand everything and become a master of something. Do what you do well and have others look after what you can not do well. You should apply this to all areas of your life, but today apply it towards your investments.

Making money is not an easy job, there are many variables when looking to invest, such as Macro-economics, Micro Economics, Exchange rates, Interest rates, Unemployment, Retail spending, Cash Flows, PE Ratios, Discounted Cash Flow, Dividend Forecasts, Net Tangible Assets, Superannuation Laws, Tax rates, Investment Structures, margin loan, margin calls, gearing ratios etc.

It takes time and resources to collate and assess this sort of information, as such if you are to be a long term successful investor you need to have someone who can provide you this information.

That is why we belong to an International Company, where we have access to over 200 research analysis, 400 other investment advisers, Economists and CEO’s of listed Australian Companies.

When investing never go it alone, you will make ill informed decisions with too little information. Long term, this is a recipe for disaster.

PS. We are always available to help. Give us a call (07) 4771 4577.