Investing is about ensuring that capital grows at a much faster rate than the cost of living so that real wealth is created

Investing is about ensuring that capital grows at a much faster rate than the cost of living so that real wealth is created. In most years and through most periods, this will be a fairly simple task. However today, when cash rates and bond yields have fallen below inflation, this fundamental investment task has suddenly become far more difficult. Whilst asset prices, particularly equities, have sprung higher, it is clear that most of this revaluation is due to lower and unsustainable bond yields. We have conviction in our view that we should not accept the lower longer term returns that will result from ignoring risk and overpaying for equities priced off nonsensical bond yields. Our investment approach is to adopt a rational process to investing capital. Read our letter to investors including our suggested investment approach: (VIEW LINK)