1 Feb 2018
Investor Risk Profile: Patience
- Posted by Dejan Pekic BCom DipFP CFP GAICD, Senior Financial Planner
Returns for growth assets (defined as property and shares) have been good to great since the 2008 Global Financial Crisis with calendar year 2011 being the only significant exception having resulted in -11.4% for Australian shares.
Effectively a decade of good times and the challenge is that investors begin to assume that good times are the norm.
The fact however is that the good times will most definitely come to an end and that is why there must be a plan for when and not if the next financial catastrophe occurs.
The attached is an excellent educational piece on patient investing and unsurprisingly it espouses the value investing principles put forward by Benjamin Graham.
Click to read.
Remember, when fear and panic take hold during the next financial catastrophe and they will, investors will be presented with an opportunity to buy more quality assets at discounted prices.
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