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I often get asked “Where should I invest, Jess?”. To which I usually respond with, “Pick a great company you think will be around in 10 years.”
This kind of advice is an echo of Warren Buffett's investing style: “If you aren't willing to own a stock for 10 years, don't even think about owning it for 10 minutes.”
Consider what one of the most successful investors, the late Charlie Munger, said when he was asked about the secret to his success. He gave a oneword answer: “Rational”. This straightforward outlook sets the scene for successful investing.
I have interviewed many investment managers and chief executives in my career and most of them have become wealthy by investing for the long term. Rome was not built in a day; neither should your investment portfolio be.
By waiting for market pullbacks to buy stocks and investing in companies with strong cashflows as well as steady and growing customers, you too could reap a fortune in the long run.
The global economy in 2023 was tumultuous. Australians were hit with rapid interest rates hikes despite assurances that rates wouldn't budge until 2024, the cost of living suddenly skyrocketed, the advancement of AI and tech grew to new heights, and global conflict plunged the stockmarket into uncertainty. Investing was far from a game of predictability and many stocks that were set to prosper sank instead. So, can we expect something similar in 2024?
This year, it's likely we will continue to see turbulence across global economies, new technologies and
