Investment Report Q3/Q4 2017

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Investment Insight | The future of crypto mining is sustainable

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"As we discussed two weeks ago in our Investment Insight about Allbirds , we’re always looking for opportunities to buy shares in innovative companies at the IPO stage. This is why we’ve just invested in Iris Energy’s IPO on the NASDAQ. Iris Energy is a Bitcoin mining company with a difference: it uses only renewable energy to power its mining operations. "The total size of the Bitcoin mining industry in 2021 is estimated to be US$16bn, with significant scope for growth in the coming years. Iris Energy represents an important and necessary step forward for this industry: a future where crypto mining operations can make a meaningful difference to carbon emissions and to the communities they operate in..." Read more about Bitcoin's energy consumption and the investment case for Iris Energy below.
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Retirees' strategies for coping with negative markets

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In last month’s column, I discussed the impact that falling markets can have on those clients who are in the saving phase of their lives. I concluded, somewhat surprisingly, that for clients who are disciplined and invest in a certain way, negative markets can help build wealth. Although this conclusion is valid for half of the population (i.e. those in the wealth accumulation phase of their lives), what about those clients who are retired and looking to receive a sustainable level of drawings to help fund their living costs? The simple answer is that for retired people, a falling market environment has to be endured rather than benefited from. It is a time when the way a portfolio is ‘engineered’ will become a critical determinant of whether the strategy will be able to sustain the same level of drawings when markets turn negative. Don’t cut down half-grown trees. For retired clients, the way in which the portfolio is constructed has a lot in common with a diversified farming...
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The best time to invest is generally right now.

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The Global Financial Crisis was so dramatic that it still looms large in the minds of many investors, almost as if it had only just happened. Anecdotally, there are investors with their money still waiting in the bank for a sign that the world is a safe place and that they can invest more widely. But while they have been waiting the Dow Jones Industrial Average in the United States, as an example, has grown around 300% since February 2007. More if dividends were reinvested. The 1987 share market crash had a similar impact on the psyche of New Zealanders. 30 years later it still comes up occasionally in meetings as a reason not to invest in shares. And yet the market has gone up by as much as 1,000% since. And the GFC has been added as a new reason – despite the NZX having returned approximately 350% since February 2009. Fear can be good. It's designed to keep us safe. We don’t even have to have direct experience - the stories of others can also affect us. And so it is with mar...
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