Chamath De Silva, Author at BetaShares
Compounding returns, fees and inflation

Compounding returns, fees and inflation

Financial literacy is a complicated and often sensitive topic. In this post, I won’t cover the personal finance aspects of this area (i.e. saving, budgeting and debt management) and instead I’ll focus on the investment and retirement planning side. Understanding the long-term effects of compounding returns, management fees on investment products, and inflation can help

Read more

Pressure Gauge

An Investor’s Guide to Inflation

In an era of central-bank inflation targeting, what matters most is arguably not inflation, but inflationary pressures. If actual core inflation is contained through tighter monetary policy (as the US Federal Reserve is attempting to do now in the US), it means higher real policy rates and also higher real discount rates for all asset

Read more

Bond Basics Part II: DIY or bond funds?

Should you hold individual bonds and “do it yourself” or a diversified bond fund/ETF? One commonly held belief in investing is that holding individual bonds entails less risk than bond funds, due to the return of principal at maturity. Is this correct? If so, does it matter? Ultimately, it depends on the role bonds play

Read more

Portfolio Diversification II: The importance of fine-tuning

Last year I addressed the concept of portfolio diversification and how we can assess it quantitatively through the use of return correlations. Just to recap: Correlation refers to the strength of the co-movement between two assets or portfolios (ranging from -1.0 or perfect negative correlation to +1.0 or perfect positive correlation) Diversification benefits – where

Read more

Time is on my side – equities for the long run

We all know the equity market has its ups and downs. Bullish runs are often interrupted by sharp corrections or extended bearish periods, even amid little change in fundamentals. With so much ‘noise’, how should investors be thinking about their equity investments? I studied the historical data to try to get some answers about longer

Read more