Michael Price speaks at London Value Investor Conference 2013
June 24, 2013 Leave a comment
The numbers say it all
June 19, 2013 Leave a comment
Heard a radio story yesterday that was interviewing a knitwear manufacturer in Melbourne, Australia.
At his factories peak production several year ago, it employed 70 workers and now he employs 20 people.
Why?
To knit and assemble a jumper (sweater for North American readers) in his Australian factory, excluding the cost of the raw material, the cost is between $30 & $35.
In China, the cost of manufacturing the same garment is between $7 and $8, while it’ll cost you a $1 in Cambodia or Bangladesh.
In a globalised world of free trade, it’s difficult to argue against the numbers.
Import Tariffs anyone?
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Western Australia – don’t become California
June 14, 2013 1 Comment
Coat of arms of Western Australia
How do I put this…..Western Australia, your hubris will kill you.
Not only is government at fault but business is as well.
West Australians seem to enjoy bragging how expensive things are in their state as if it is a badge of success. Their trade off is the nice weather, surf and beaches. Luckily, you can be broke and still be able to enjoy them.
Landlords in Karratha are charging extraordinary rent for ordinary homes in a town that is 1,500 km from Perth. In fact some small houses, cost over $5,000 per month to rent which is the same as renting a 2 bedroom apartment in Lower Manhattan or a 4 bedroom 150 sq. metre fully furnished condo in Singapore.
The cost of living in Western Australia remains much higher than in other parts of Australia, especially when it comes to food & fuel.
Beyond our state border, a recent Deutsche Bank survey has found that Australia, as a whole is one of the most expensive countries to live in.
Yes, I know that there are benefits to living in Australia, but the rising costs of the basic necessities is a concern. Don’t get me started on paying $10.50 for a pint of beer in a pub!
There shouldn’t be a “premium” to pay for almost everything, simply for living in Western Australia.
I’ll let you in, on a small secret, not everybody in W.A. earns $190,000 per year to operate an oil rig.
The risk that Western Australia has is that people can start to leave the state just as easily as they came here.
Not paying for advice will cost you more
June 9, 2013 Leave a comment
An article that appeared in The Australian newspaper, dated June 8-9, 2013, mentioned the findings of a survey conducted by research group, CoreData which illustrates their respondents investment position.
Their survey found the group of “mass-affluent” participants are holding almost twice the amount of cash than those catergorised as high net worth.
Commonly, “mass affluent” investors are considered to have a minimum of $50,000 to invest, up to $500,000, while a net worth investor is one who has more than $500,000 of investible assets.
The reasons for the “mass affluents” higher cash allocation were cited that they “don’t like volatility, they’e not sure what to do and” and generally, they are self-directed investors.
The article and survey surmised that these investors have remained paralysed in cash whilst asset prices have risen over the past 3 years.
In other words, they don’t seek or haven’t sought professional investment advice.
Has the advent of the “do-it-yourself” online investor been positive?
Why do so many unsophisticated and often financially illiterate investors choose to not pay for advice when they try to manage and investing their money?
I’m not sure if they’re saving money by not paying for advice?
Perhaps their reluctance to engage professional help is that have are being sold products (see “solutions”) rather than receiving advice.
Inversely, corporations, governments and experienced, wealthy investors often seek and pay for advice from various professionals (be it structural, strategic, financial or legal) prior to making investing decisions?
This group wouldn’t accept the notion of being “sold to”.
It’s time for smaller investors to demand that they receive advice for their money and not “solutions” and “products”.
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