$9.99 AUD

Low Rates, High Returns

Low Rates, High Returns by Pete Wargent and Stephen Moriarty discusses how to manage your own investments to generate passive income with low risk.

The key premise is that the financial services industry often charges high fees without providing corresponding returns, leading to suboptimal outcomes for most investors. Instead, we argue that anyone can manage their own investments by following a few timeless principles.

Key points include:


- Market Conditions: In periods of extremely low interest rates, which may persist, making traditional fixed-interest investments (like bonds) less attractive.


- Investment Strategy: The book offers a systematic approach to investing in equities, which are historically the best asset class for both income and capital growth.


- Timeless Principles: The authors present eight timeless investment principles, including systematic investing, managing emotions, understanding market cycles, mean reversion, diversification, asset allocation, buying low and selling high, and rebalancing.


- Personality in Investing: The book emphasizes the importance of understanding your personality type, using the Enneagram system, to make better investment decisions.


- Myths and Misconceptions: The book debunks common myths promoted by the financial services industry, such as the idea that you can't beat the market or that buy-and-hold is always the best strategy.


- Fees: One of the biggest drags on long-term returns is the compounding effect of fees charged by mutual funds and financial advisors.


- Control and Choice: Managing your own investments gives you greater control over asset allocation, allowing you to take advantage of market cycles and global opportunities.


- Risk Management: The authors introduce a "risk hierarchy," which helps investors think about risk in a more practical way, focusing on avoiding permanent capital loss rather than short-term volatility.

The book encourages readers to think for themselves, understand the principles of investing, and avoid relying on financial advisors who may not have their best interests at heart. By applying the strategies outlined, investors can grow their wealth with lower risk and higher returns over time.

Not Financial Advice