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Why regulators turning blind eye? Trillion dollars is significant

Bloomberg Odd Lots podcast talks about private credit in US. It’s huge

This is a really poor information for investors and should be called out. Your 7 criteria are actually very sound, however you have not followed your own criteria with your highlighted stock selections. Auckland Airport has a leverage ratio above 4 times and a pathetic Return on Equity. Propel Funerals does not fare much better on either of these important metrics. I would contend that only Cochlear, REA Group and possible Wesfarmers - from your list of 16 would broadly meet your criteria. While most of the other companies mentioned might survive for a long time period, if their track record is anything to go by then investors should remain very skeptical of them! A look at the Balance Sheets, Cashflows and Return on Equity of companies such as Technology One, Breville, ARB Corporation and Aristocrat would serve the author well to reinforce his own criteria.

Funerals are events service. But the biggest mark up is the excessories. The casket handles need to be taken off before cremation for example and get recycled 100% profit.

I've owned AIA for about 6 years now. I also own Airports of Thailand. The problem with monopolistic companies is that their earnings are usually limited to their local region instead of global. Governments also restrict how much these companies and increase their prices. For example: CSL, Berkshire Hathaway, Google, Apple and Meta do not have a monopoly like ASX, AIA or Transurban. However, their international business reach means their earnings will grow much more than a local monopoly... resulting in higher valuations over time.

reckon assuming asx has a forever ....

Of the 16, I don’t think we can include the LICs and SOL as they’re investment managers and will buy and sell on your behalf over the years( including in some of the companies you exclude). I think AZJ WES JHX COH AIA are the real gems. Some of the others ‘could’ find themselves on the wrong side of government regulation at some point (TCL SKC TLC ) . REA May get disrupted in future, just ask the newspapers they took the market from!

Hold for ever? Sounds good but a bit misleading as holding for ever is not practical.

Great episode except for the sound effects.

Invaluable information. Thank you for sharing this.

great presentation - appreciate the honesty on annuities - keep content like this coming. Invaluable!

Dividends dropped off in Aus during Covid.

Great presentation thank uou

This was not really about dividend aristocrats, is there a link to an article about that somewhere?

Lmao the 4% is there as a conservative withdrawal rate so that your money will continue to GROW over time. It’s not going to zero lol in this case the 4% would actually be more and more over time.

What if you hold about 5 years basic living expenses in cash and bonds to weather out a bear market, and sell more of your stocks when the market is performing well

No wonder dude works in morning star, fin-fluncer and scammer from last ice age

Well Enjoyed the video🙌 I'm not really sure if it is the best time to ask but, I was wondering if I can create better distribution by helping you edit your videos and also make highly engaging shorts out of them?

SCHD pays 3.5% dividend this guy is a moron you can live on that dividend forever.

Yeah lower it to 3% and have way more money than you need when you die.

the probbbbblem is you can't predict the future! be a good human and adjust as you go, you can do it

Thank you very much!

The problem is that past performance doesn't predict future performance.

Kermit the frog…. Hilarious and so true.

Thanks Morningstar for this free series, I listen to Mark and Shani on the podcasts regularly and they are great because they are really on their game but don't take themselves too seriously which makes them easy to relate to, for me anyway. Keep up the good work. I can't believe there are only 39 likes after 2 years, people should stop watching stupid cat videos and the like and watch these things to help them think more about their financial future IMO.

Thanks Guys love your work

Put a log on price and time and the chart goes up in a straight line, it exactly follows the power law.

very good.

4% rule is over 30 years outdated now. We have so many various higher yielding options from stocks, ETFs, split funds all the way to private credit and lending now. Diversification is always key but IMO you can get a lot farther with a higher yield strategy.

Or you try to fully understand the 4% rule, what it's based on, and the various outcomes and probabilities. In general it's only the very edge cases that would result in ending a 30 year period with $0, and most times there is more than you started with. But that's also using bonds, which just haven't done well most of the last 30 years. If you modify your process to use just the S&P, it's also 4% but with slightly more volatility. But if you have any sort of flexibility in your spending (fewer people travel during a bad recession, and travel options were limited during Covid), you can also adjust to taking out a little less during a downturn. And really the failure points, if planning is otherwise decent, is if you retire right into a bad recession and take out your first few years of expenses while the market is down. Understanding these failure cases, instead of just glossing over that a set 4% rule might not cover all cases if living off investments for 60 years, can make a huge difference.

Great stuff team…. Love your work!

Women fougt hard for feminist goals. Its same that young women are getting married and letting them down.

Renting is fine when you are young, and are very focussed on your lifestyle, and you don't want anything to disrupt it or give us reasons to feel trapped. As we get older, our lifestyle needs change, and housing security becomes more important. I'm not sure I would like to be 70 +, and still renting, knowing that when, and if, I get to 80 and beyond, I am going to have to find more and more rental money, regardless of whether I invested in stocks and fixed income when I was younger. There will always be lots of distractions for us as we go through life, wanting to travel, friends and family with financial difficulties, markets tanking, such that our easily liquidated investments can be a quick fix to a problem. The same is not true with a house that we will gradually own over time, and will provide us with a rent free future.

Contrary to what some people seem to think, Australian property is not in a bubble. Australian property prices (I'm talking capital cities) have increased progressively for many decades. There have been times over the last few decades when prices have gone backwards, but only for relatively short periods of time. The story , over decades, has been steadily increasing prices, much the same as the stock market. If you are waiting for the bubble to burst, you will most likely never buy, and be a renter for life. Nothing wrong with that, just make sure you have the means, as you get older, and are unable to earn an income, to cope with steadily increasing rents.

Thanks. Why isn't it called 'currency hedged' instead of 'hedged'? Seems to me that there are numerous ways of 'hedging your bets', currency-hedging being just one of them. And doesn't it depend on what is the currency pair and is one's home currency pegged to the US dollar (e.g. if your account is in KHR and you are buying an ETF in SGD. Plus, market conditions. And what is the inflation of either currency - say you are holding Venezuelan pesos or Turkish lira but investing in a harder currency. I think it us more complicated than even your longer explanation. AND what is your currency of savings. The more steps you take the more you lose. For ecample, once I bought an AUD term deposit in a SGD-based bank but had to finance with CAD. All in all I lost despite the supposed interest.

Isn't Australian housing in a bubble? Why not wait for the bubble to burst before buying?

IT MEANS A COMPLETE DISASTER! PAY YOUR BILLS NINE FAIRFAX!

Nice episode thank you.

Hi, will it be possible to put the snapshots on the videos you do on the screen and some summary table when you are finishing, please. Similar to Morningstar US do. So it's easy to understand.

Do I pay income tax on my contributions, and then the recipient also pays income tax when they receive it?

The MVW ETF is more tax inefficient than broad market indices like IOZ, A200, STW, or VAS.

Here's the link to our free investing course as mentioned: www.morningstar.com.au/insights/personal-finance/244572/introducing-our-investing-course-foundations-of-financial-independence

Outstanding episode. Thanks so much for your sound advice. I agree with your every word.

Great info Mark & Shani! As a dividend investor I like to hear other investors’ journeys. Can we hear more about the investor with $400k dividend income? Or have an episode with the special guest?

Dividend investing produces concentration risk, by sector and country. In the GFC banking and insurance stocks were hit badly.

Thank you very much. Could you please share the link for the investing course?

A dividend investor would never have invested in Berkshire Hathaway or tech stocks which have done so well.

Well said and thanks for sharing these insights. Predictions are, and have been, beyond ridiculous, especially on RUclips.

Ray Dali, the man who said 'cash is trash'; cash then performed better than stocks and bonds that year.😂

In the Morningstar Stock Screenner, what does the mean the letter "Q" in the column "Moat" and in the "Morningstar Rating stars"