16 Aug 2019
The Wisdom of Great Investors: Hamish Douglass
- Posted by Dejan Pekic BCom DipFP CFP GAICD, Senior Financial Planner
Hamish Douglass is one of Australia’s best PM (Portfolio Managers) and here he shares his insights on successful active investing.
What he has learned-
- Standing on the shoulders of giants
- The power of network effect
- Beware of mistaking companies with high returns on capital or market leadership for outstanding businesses
- Don’t rely on the rear-view mirror
- Your best ideas are often more obvious than you think
- Be careful of stocks trading at low multiples of earnings or those that offer high dividend yields
- Avoid turnarounds
- The magic of compound interest
- Importance of portfolio construction
- Beware of businesses where the competitive advantage is dependent upon government subsidies or vulnerable to government policy
- Know what you don’t know
- Don’t become emotional
- Don’t make the same mistake twice
Most importantly, when fear and panic take hold, that is when an investor is presented with the best opportunity to buy more quality assets at reasonable or better still discounted prices.
Click to read.
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