For a long time, Warren Buffett specialised in dumpster diving. He would buy small- and microcap stocks that traded at heavy discounts. Then, as a catalyst caused the share price to spike, he sold out for huge gains in a relatively short time. Now it seems droves of fund managers are trying to do the same thing. Let me explain how this will create opportunities for individual investors like you…
They’re calling it the One Belt One Road Initiative. It will cover 65 countries, touching more than 4.4 billion people. This project is a massive opportunity for Aussie businesses. And that means it could also be a massive opportunity for you, the Aussie investor.
It’s still not clear if China will start selling US bonds. In fact, it could be that China can’t help but buy more US bonds. As an exporting nation China earns hundreds of billions in foreign currency, particularly US dollars. Over time, they’ve piled up trillions in USD. What can they do with all these dollars?
As US bond prices collapsed, so too did bond prices in most developed countries. The rise in yields not only devastated bond portfolios, it encouraged thousands of investors to jump out of stock and into high yielding bonds. It caused the All Ordinaries (the 500 largest Aussie stocks) to fall more than 22% from its high in 1994. Question is, could we see a similar situation play out in 2018?
Imagine bringing in a billion per minute. This is exactly what Masayoshi Son did in a 45 minute meeting. Now armed to the teeth with cash, Son is busy finding places to put it to work. Yet strangely, he’s made an unorthodox investment that’s left analysts scratching their heads.
Something is risky if there’s a high probability to lose money, right? Investors are told investing in an index or ETF is far safer than the alternative, holding picked stocks. So not only can you make amazing returns, you can also take on far less risk. Dreams do come true... but try telling that to anyone who bought an ETF tracking volatility.
On the back of a positive announcement this morning, small-cap biotech firm Imugene [ASX:IMU] has jumped over 30%. At time of writing the stock is lying around at a 35.30% premium from yesterday.
Aurizon is Australia’s largest freight operator, with a focus on commodity transportation. The AU$9 billion logistics company is up almost 4% on open today, after an encouraging half-year report was released highlighting an interim increase in net profit of 52%.
I have no idea how long the next bull or bear market will last. But I’m confident that future bull runs will last far longer than bear markets. This is really what it’s all about — learning from the past to make better decisions in the present.
Today there’s too much information available. There are too many channels screaming for your attention. So whom do you trust? Who do you believe? Who is credible? Who is accountable? What we can also tell you is that transparency is a tell-tale sign of those you can trust.