For the Marcus Today team and the growth portfolio we manage for investors ($55 million), Covid-19 was not a disaster. The sharemarket volatility proved to be a fabulous opportunity instead. Our Growth Separately Managed Account (as at June 10) has outperformed the ASX 300 Accumulation Index by 26.87% since the coronavirus hit on February 20.
And when the market falls over again we will see another fabulous opportunity beginning. But how did we do it? At the risk of letting out our secret herbs and spices, here are 18 ways to beat the herd. These lessons are not for everyone, and most fund managers are too big to do this, but it is something to pin on the fridge.
• Have the ability and bravery to go to 100% cash. Most fund managers can’t, but as an individual investor you can.
• Work with a small team, not alone. You need bouncing boards, other intelligent, engaged people on an assortment of wavelengths. People who are objective, are not easily intimidated and speak freely. Working alone means more mistakes. Too big an investment team constipates the investment process. You need something in the middle.
• Be unemotional. It takes a lot of experience to be truly objective. If you ever “love” or “hate” a stock, you’re missing the point. You can’t invest on feelings.
This story is from the July 2020 edition of Money Magazine Australia.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the July 2020 edition of Money Magazine Australia.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber? Sign In
Is the public market shrinking?
Australia needs a healthy stock market to give companies access to funds and to allow retail investors to build wealth.
India: three steps to transformation
Massive investment and extensive reforms turbocharge the economy.
The ballet of business
Changing direction, products, models and marketing is a hard task for a business. We chart what it takes to turn a business around, plus profile four successful pivots.
Save money and the planet
Could the high cost of living give us the incentive we need to reduce how much water and energy we use or waste? These eco-friendly household tips will help you do just that.
AI adoption is the new black
Artificial intelligence is set to reshape the commercial world, and small enterprises can’t afford to miss the boat.
Spam attack! Murky laws jam our inboxes
Unwanted marketing material is one of the pain points of modern life.
From rags to riches in style
Rich Tran sported a bowl cut until he was 14 years old and had no intention of becoming a hairdresser.
New work deals are killing the 'old' office
The Covid pandemic and the subsequent lockdowns accelerated the trend to more people working from home. It was a mixed experience.
Points taken: the truth about rewards
Can hopping between credit cards really boost your frequent flyer haul and give you cheap or free travel - or is it doing more harm than good behind the scenes? Money puts it to the test.
Shortcuts to own a home
Innovative ideas with a focus on low costs and sustainability could help solve the housing crunch.