How To Invest In Index Funds? + Buffetts Annual Letter!
Hey Money Pals!
Before I dive into the crux of this week's newsletter, Itâs worth calling out the difficulties many Australians are facing right now.
I try to stick to my investing lane as much as possible, however, I think itâs appropriate to acknowledge the struggle some of you are undoubtedly facing.
I sincerely hope youâre all keeping as safe and, well as you can be in these difficult times.
đ¨Â New Article đ¨ - How To Invest In Index Funds Through ETFs In Australia
Index funds are an incredible tool for investors looking for a passive, or âhands offâ way to invest their money across multiple shares, and other asset classes.Â
There are a few ways you can invest in an index, most commonly through a managed fund or ETF.Â
In this article, Iâll talk you through how to invest in index funds in Australia through ETFs in 5 simple steps.
You can read the full article via the link below âŹď¸
What Caught My đ This Week
Did you know that 42% of direct sharemarket investors are women!
Source: ASX 2020 Investor Study
#internationalwomensday
#From Around The Web
Buffettâs Annual Letter
Itâs that time of year again when we hear from the GOAT đ himself. Warren Buffettâs letters to Berkshire Shareholders are considered must-read by many investment professionals given the amount of wisdom, and rational insight Buffett articulates so concisely. This yearâs letter was no exception.
Berkshires Cash Stack Keeps Rising
Berkshire has been seeking to partially deploy their $US 144Bn cash pile into an âelephant sizedâ acquisition for a number of years. For better or worse, 2021 was not the year. In lieu of an acquisition, Berkshire completed a $US 51.7 billion buyback program to return capital to shareholders. According to Buffett, âthat expenditure left our continuing shareholders owning about 10% more of all Berkshire businesses,â
My portfolio tracker: Shareshight â 4 months free for The Money Pal Readers.
Interestingly, Buffett chose to make no mention of the Pandemic. Instead, he chose to hone in on Berkshireâs impressive operating results. Buffett placed a particular emphasis on the strong performance of Berkshires railroad subsidiary, Burlington Northern Santa Fe, which âcontinues to be the number one artery of American commerce.â BNSF generated a record $6 billion worth of âold-fashioned sort of earnings.â
Changing of The Gaurd
Another interesting takeaway was that Berkshires two long-time investment managers, Todd Combs and Ted Weschler are managing more money than ever. The pair manage a total of $34 billion worth of investments, up from roughly $2B when they started in 2010 & 2012 respectively.
To me, this is yet another signal of Buffettâs succession plan in action. At age 91, who could blame him?
You can read the full letter through the link below.
Share Markets & War
The human cost of the war in Ukraine is horrific, shocking and flat-out gutwrenching. With that said, The Money Pal is not a geo-political website. Itâs a website designed to help make investing wisdom go viral. If youâre interested in Geo-politics, there are much better sources to consume.
In the interest of sticking to our narrow investing lane, itâs worth delving into the historical impact past wars have had on investment markets so we as investors can apply precedents to re-think our interests.
This article from Seeking Alpha focuses largely on the S&P 500 Index, and how itâs reacted to Armed conflicts over the past 80 years. One of those conflicts was Pearl Harbour. On the day of the attack, the S&P 500 declined 11%. The following day, the US declared war on Japan. One year later, the S&P 500 was 15.3% higher, albeit in the midst of World War 2.
It also addresses pre existing inflationary concerns, and how the situation in Ukraine will likely only enhance inflation due to commodity sanctions. Adding additional pressure on central banks to raise interest rates sooner than anticipated.
Keep reading below.
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The content in this newsletter is published and provided for informational and entertainment purposes only and is general in nature.  The information in the Blog and newsletter constitutes the Content Creatorâs own opinions. The information does not take your personal situation into account and should not be regarded as financial advice.Â