Costs are one of the few things we can control as investors. They have a massive impact on your long-term returns, too. While you could say performance is ultimately all that matters, I’d still say costs should be a key factor when choosing where to invest.
Since I started to invest, fund charges have generally headed in a southerly direction. Thanks to the popularity of index funds, Vanguard and the late, great John Bogle, more of my returns are finding their way into my pocket rather than someone else’s.
Investing can be simple but it’s rarely easy. Our monkey brains are constantly playing tricks on us and taking mental shortcuts that can undermine even the best investing decisions.
Let’s start small in 2019. One of my investing ‘themes’ at the moment is to dedicate a slice of my portfolio (roughly 10% or so) to smaller company investments. I feel that I’m pretty well covered UK-wise, so the next stop is global small-cap funds.
I don’t consider myself to be an active trader. In a normal year, I’ll reinvest some dividends every few months and add some fresh money to my ISA in April or May. That’s usually it.
If I am feeling particularly energetic, I might sell a holding that doesn’t seem to cut the mustard anymore and reinvest the money elsewhere. Then I might need to lie down for a few years to recover!
Falling markets can be useful in many ways. They can provide attractive entry prices for long-term investors. And they can reveal who has been swimming naked.
We seem to be having more of a Santa Rout than a Santa Rally, so it’s a brave investor that’s looking to put money in small-cap funds right now. But I think it’s a great time to size up what’s on offer.
When you’re messing around with statistics, it’s all too easy to come up with something that’s horrendously misleading. Investing stats are no different. Here are three that really set my teeth on edge.
Picking good investments is important but perhaps represents just 20% of the puzzle. Learning how to hold onto the darn things, regardless of what the market throws at you, is arguably the other 80%.
Copyright © 2018-2026 www.itinvestor.co.uk
Disclaimer: This site is for informational purposes only. We make no assertions as to the accuracy, completeness, suitability or validity of anything on this site.
We will not be liable for any errors or omissions or any damages arising from its display or use. Here's our privacy and cookie policy.