FNArena’s Weekly Insights – May 11 2020
Dear time-poor investor: the impact from this year’s tragedy for income investors is worse because of faulty strategies
In this week’s Weekly Insights:
-Investing For Income: The Smart Way
-It’s A Relief Rally
Investing For Income: The Smart Way
By Rudi Filapek-Vandyck, Editor FNArena
Bad news hits the weakest the hardest.
Australian investors already endured a rather disappointing latter half of 2019 when companies, including banks and resources companies, announced sizeable cuts to dividends.
It shows not all was well even before the covid-19 pandemic spread across the globe and forced countries into lockdown.
Now 2020 is shaping up as the worst year on record in Australia as far as corporate profits and shareholder dividends are concerned, in particular hitting those shareholders hard whose strategy is aimed at receiving sustainable income from the share market.
However, the truth, no matter how painful for those impacted, is that many of those investors blissfully ignored the very basic number one rule when making investment decisions:
(to quote Warren Buffett from a long time ago)
-Rule number one: never lose money
-Rule number two: never forget rule number one