Lachlan Hughes

Investors continue to use technology companies as a proxy for risk, but we need to consider the value of individual stocks in the sector. As we survey the recent sell off in US tech outside our portfolio, we believe many of the share price falls are justified by company valuations.... Show More

Lachlan Hughes

Earlier this year I reviewed my top ten investment books of all time on Livewire. My goal was to share some of the perspectives of the world’s best investors. In this wire, I summarise those reviews to identify the top five characteristics of the world's best investors, the 'Super investors'. Show More

Lachlan Hughes

At around $1.9 trillion Australian dollars, the Australian equity market is a minnow by global standards. It represents roughly 2% of global equity markets. Said another way, by only owning Australian shares, you are missing 98% of the world's investment opportunities. Show More

Hi David. With respect to Wells Fargo, this analysis assumes Wells Fargo pays the same net profit in 10 years’ time – a conservative assumption as its profits will most certainly be higher as the business grows. Wells Fargo produced net profit of $8.057B in 2007, this year it is on track to produce $21.1B in net profit. This period includes the global financial crisis which Wells Fargo weathered. Incidentally, the business was founded in 1852, 166 years ago so I think it is fair to expect it to be around for another 10 years. The return on the bond is fixed as long as it is held to maturity. If you buy a 10 year bond today at a par value of $100 with a 3% coupon, you will receive 10 x $3 coupon payments and you will get $100 back at maturity.

On The secret of sound investment in three words -

Hi Damien. I think we could. We need our politicians to create a law that the company (acting on behalf of its shareholders) can claw back any entitlements i.e. salary or bonus, for unscrupulous behaviour. I think that would produce a positive change.

On The top five characteristics of 'Super investors' -

@Adrian Thanks for your question Adrian. You raise an important point. Best practice is to accrue the performance fee daily, crystallise annually (subject to beating index) and apply a high water mark. The accrual ensures new investors aren’t being penalised for prior performance. This is important. However, it doesn’t help existing unit holders, who would have still paid a fee in my example.

On The dirty secrets fund managers don’t want you to know! -