Investable themes: Leisure, healthcare technology, education technology, goldTechnology really is our saviour. All will be forgiven (past inequalities, debt burdens, health and education shortfalls, political instability, etc.) when technology delivers gains in standards of living that are of a critical mass. Critical mass means a standard of living resembling a near-utopian state that eliminates scarcity … Continue reading Opinion: Technology is in a standard-of-living race against economics
Author: tothepound
Why investing is like your diet
Healthy and balanced, but in order to be consistent and disciplined, it certainly helps if you enjoy it. You don’t make decisions on what to eat based only on the cost and nutritional value of the meal. You also consider taste, preference, flavour, and what you “feel like at the time”. At To the pound, … Continue reading Why investing is like your diet
GameStop: nothing ‘weird’ about it
Market commentators and the press have been calling this episode ‘weird’. There’s nothing ‘weird’ about it. It only feels weird to those who felt in control previously but are now in disarray. ‘Weird’ is a word people use to describe something they don’t understand. This kind of thing happens a lot in markets, with a … Continue reading GameStop: nothing ‘weird’ about it
Sustainability digest
A handful of snippets for the sustainable investor. In new research, New York University professor Tensie Whelan found that only 6% of board directors at Fortune 100 companies in the US had environmental or governance experience. It is concerning because actual ESG experience on boards helps to bridge the gap between rhetoric and meaningful action. … Continue reading Sustainability digest
Should crowdfunding form part my portfolio?
Yes, but in very small size, and only what you can afford to lose. Crowdfunding is a great innovation. It allows normal people the opportunity to invest in private companies, where previously private equity - and other forms of private capital - was a very exclusive club. However, investing in start-ups and other small, unproven, … Continue reading Should crowdfunding form part my portfolio?
The unknown unknowns of investing
Timing the market is inherently difficult. Investment strategies that attempt to predict the turning points in markets need to be very precise and there is little room for error. That’s why, rather than trying to time the market, active allocation specialists employ a strategy of what they call ‘dynamic asset allocation’. The way we think … Continue reading The unknown unknowns of investing
What is inflation?
Inflation should be thought of from two different – equivalent – perspectives:Inflation is the rate of increase in the general level of prices in the economyInflation is the rate at which the value of money is falling, when measured in terms of the goods and services you can buyThey’re equivalent because, whichever way you look … Continue reading What is inflation?
What’s the difference between asset allocation and security selection?
Active investment managers try to beat a benchmark by making informed decisions about what to put into their portfolio. Their decisions can be categorised into two main groups. These two decision groups then also define how the investment manager’s performance is evaluated. The two decision groups are:Security selection, andAsset allocationSecurity selection is the process of … Continue reading What’s the difference between asset allocation and security selection?
Sustainability digest
A handful of snippets for the sustainable investor. Joe Biden and Kamala Harris were sworn in as the next one-two in the White House. Biden quickly got to work signing executive orders, some of which reversed Trump policies. On the environmental front, Biden signed the US back up to the Paris Climate Accords, which commit … Continue reading Sustainability digest
“Undiversifying”
As we explained in another article on diversification, the neutral setting for most normal investors is a diversified portfolio, at least within asset classes. That means having exposure to many different assets, almost certainly through a collective investment vehicle (a fund), making your money spread further than if you had separately invested in all those … Continue reading “Undiversifying”
To the pound 