Better Investing

What the world’s most sophisticated investors know (that most don’t)

Why is it that the world’s most sophisticated investors continually do better than the average investor? It has been said that “the rich get richer and the poor get the picture”, and whilst the growing global income divide is widely discussed, what is perhaps not discussed enough, is the knowledge gap between the average investor and the sophisticated, professional. In Australia, the rise of DIY super makes this even more of an issue than it is in countries where pension schemes are dominated by government programs. As with most things, a higher level of knowledge and greater understanding leads to better choices. Whilst professional investors don’t have any more ability to see the future than any ordinary mortal, they do have an extensive toolbox of analytical techniques at their disposal, and investment theory and practice has evolved quite a lot over the last thirty years...

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