Investing

What’s the point in investing?

Investing is the process of providing money now, in return for some future profit.

The most common reason for investing in the western world is to save for your retirement.

And the industry is huge!

Superannuation in Australia has a record $2.3 trillion dollars invested as at March 2017.

This money is the combined savings of every employee or retiree that has ever contributed to a retirement fund in some way.

Different types of return from investments

An investor makes a return on their investment in two possible ways.

The first way is through income.

Products such as cash and bonds offer interest income as an incentive for investors to loan or deposit money.

These returns are either fixed or variable.

Generally the higher the interest rate, the riskier the loan. Though most cash and fixed interest products are relatively safe assets.

That is because your capital, the amount you originally invest, is usually returned in full.

The second way of making a return is through capital gains.

Shares and property are the two main asset classes that offer this possibility.

A capital gain is simply the value of your original investment going up over time.

But be aware that the possibility of losing money is also present in such investments at a comparatively high degree.

Some assets offer both type of return.

For example, a property combines income in the form of rent along with a possibility of capital growth over time.

Similarly, a lot of stocks pay part of their profits back to shareholders in the form of dividends.

Individual investors choose different investments based on different goals and opinions.

You should always make sure you invest according to your individual preferences. And make an effort to understand the risks and returns of your investment portfolio.

Our editors and analysts here at Port Phillip Publishing often write about investing and investments. But you won’t find the same tired analysis here as in the mainstream press.

We pride ourselves on our independence and on never following the crowd. You can find all our articles on investing on this page.

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Why You Shouldn’t Emulate Institutional Investors
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Why Bankers Don’t Like Bitcoin
Bankers feel threatened by disruptive currencies like bitcoin. And so they should be. Cryptocurrencies will do to the financial system what the internet did to the media. People will be able to choose another form of money that is beyond the government’s control.
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Why Investing in Resources Stocks Now Can Make You a Fortune
Geopolitical risk is building. Don’t expect low volatility forever. Given the lighter sanctions, volatility is likely to remain low and commodities prices could jump following a negative statement from Kim Jong-un. While the investment banks may not profit from the next commodities surge, you can.
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The Bitcoin Battle
In one corner, we have the countries actively trying to integrate the alternative currency into their economy. In the other corner, there are the heavy-handed tactics being used to shut down cryptocurrencies.
How to Invest Like a Celebrity With the Future Fund
How to Invest Like a Celebrity With the Future Fund
In 2008, American actress Gwyneth Paltrow launched an obscure website called Goop. Last year, Goop received a US$15–20 million (AU$18.6–24.8 million) injection of venture capital from the Future Fund. And it’s now taking a stab at the US$36.7 billion (AU$45.5) online US vitamin business.
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The Future Fund – A New Way to Boost Your Superannuation
What few people realise is that the Future Fund is actually the best performing Super Fund in Australia, returning 7.8% per annum since 2007. That’s well above the best returning funds in Australia. None of which have cracked above the 6% mark in the same time frame.
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The Absurdity of the ‘Living Wage’
No one — or almost no one — writing in the editorial pages works at McDonald’s or earns the minimum wage. But practically every one of them has an opinion about how much people on low wages should earn.
Bitcoin — Another Tulip Mania?
Bitcoin — Another Tulip Mania?
In June, one of our sons urged the family to put some money into bitcoin and at least one other cryptocurrency. We made it clear that Father Knows Best — bitcoin is no place for your savings.
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Why the US Market Has Legs to Run Higher
The only thing coming out of the White House has been talks of in-fighting and key personnel losing their jobs. Yet the US market hasn’t fallen.  Rather, chances are that the market has changed its focus. Instead of being concerned about Trump delivering on his promises, punters are looking elsewhere.
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Boring Investment Advice For Exciting Times
Overbought, overhyped and overvalued markets represent a serious threat to your investments and wealth. Life would be so much easier if excessive reward was risk free…but that’s not how life works.