My attention was drawn to an article in The Age (also published in other Fairfax newspapers) on 23 April, entitled “Time to let go: selling in May could be a winning strategy” written by ATAA member Alan Clement. The “Sell in May and Go Away” subject comes up around this time of every year with…

This blog continues on from last week where I posed the question: “How can I, in advance, eliminate the fairly good chance of selecting a poorly performing long term portfolio, even if I re-invest dividends?” There are two approaches of ensuring that one does NOT experience portfolio performance similar to the poorly performing 10-stock portfolio…

Last week we looked at the potential upper and lower limits for ASX dividend re-investing buy and hold portfolios. I posed the question of how systematic risk can be mitigated and how the worst case stock selection can be avoided. Before getting into these answers we should quickly explore the difference that re-investing dividends makes…

Following on from last week’s blog, which was entitled “Cash is sometimes King”, emphasis added, we will explore deploying an equities-only long term buy and hold strategy compared to cash-and-equities for the same strategy, because oftentimes cash is not king. The last 12 years have undoubtedly seen secular bear market conditions, which I have discussed…

Welcome to a new year of the Gary Stone Journal. 2012 has come and gone and we can now look forward in the hope that 2013 will be a year of fruitful investment. To begin afresh, I thought that I would share with you my thoughts on an investment principle that is hardly the most…

My brand new and FREE Special Report is hot off the press. It’s called “The Trading Manifesto”. Why the name, “The Trading Manifesto”? Because the contents of this report are a written declaration of my thoughts, passions and beliefs on how every self directed investor should approach the markets. When I thought about what to…

I recently read Nick Radge’s book “Unholy Grails”. I highly recommend that every investor read this book. I repeat these quotes here because I am in total agreement with the concepts and principles discussed in Nick’s book. I also do so in an effort to add further evidence to assist readers of this blog to…

Risk and Money Management are the keys to the kingdom when it comes to portfolio management. There is no doubt about it! And here’s the research to back it up. Tuesday evening 23rd October 2012, Gary Stone took Switzer TV viewers through the benefits of implementing a strategy with risk and money management rules by…

Charley Ellis, a 45 year veteran of investment in the markets, has been quoted as saying “the sad lesson for retail investors is that institutional investors underperform the market and that includes those professionals running managed funds.” In his book, “Winning the Loser’s Game”, Charley Ellis explains that managed funds, on average, will underperform the…

Making mistakes is one of the biggest problems that private investors need to overcome. Active investors will make more mistakes than passive investors, especially when they start out, purely due to the fact that they make many more decisions. The aim should be to minimise mistakes rather than trying to hit big winners. Over time,…