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16 Aug 2019

The Wisdom of Great Investors: Hamish Douglass

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-

  1. Standing on the shoulders of giants
  2. The power of network effect
  3. Beware of mistaking companies with high returns on capital or market leadership for outstanding businesses
  4. Don’t rely on the rear-view mirror
  5. Your best ideas are often more obvious than you think
  6. Be careful of stocks trading at low multiples of earnings or those that offer high dividend yields
  7. Avoid turnarounds
  8. The magic of compound interest
  9. Importance of portfolio construction
  10. Beware of businesses where the competitive advantage is dependent upon government subsidies or vulnerable to government policy
  11. Know what you don’t know
  12. Don’t become emotional
  13. 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.


At Newealth we are always looking to support and promote our clients wherever possible and if you have any ideas or comments, please feel free to email me or to call me on +61 2 9267 2322.

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