On A Roll Amid The Uncertainty
Money Magazine Australia|September 2020
What matters is how a company is positioned to perform in the future, not how it performed in the past
Greg Hoffman
On A Roll Amid The Uncertainty

The stock pickers on social media sites I follow were mysteriously quiet in early August. Late August is reporting season when most ASX-listed stocks publish their numbers and I’m confident a multitude of “after-the-fact” experts will emerge wondering how everyone else could have been so dumb to not have anticipated whatever now seems obvious with perfect hindsight. But for me winning the long-term investment game is far more important than being “right” about a particular short-term number or issue.

Nobel prize-winning physicist Richard Feynman was a maverick who understood the world deeply from first principles. He once said: “I have approximate answers and possible beliefs and different degrees of certainty about different things, but I’m not absolutely sure of anything. And many things I don’t know anything about.”

It’s a stark statement in a world where certainty – or the veneer of it – is prized so highly. And my approach to investing is deeply rooted in this kind of philosophy. I don’t simply accept uncertainty, I welcome it and make a living by dealing with it effectively.

CASE STUDY

Let’s explore this in the real-life case study of Globe International (ASX: GLB), which featured in last month’s column illustrating the benefits of having owner/managers running a business (the Hill brothers, in this case).

This story is from the {{IssueName}} edition of {{MagazineName}}.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.

This story is from the {{IssueName}} edition of {{MagazineName}}.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.

MORE STORIES FROM MONEY MAGAZINE AUSTRALIAView all
An outrageous, beautiful monopoly
Money Magazine Australia

An outrageous, beautiful monopoly

Telstra's mobile business is a cash machine with few competitors, giving it the highest returns in the world.

time-read
4 mins  |
July 2024
Drop the anchor to judge value
Money Magazine Australia

Drop the anchor to judge value

Buying and selling decisions should be based on where a stock price is going, not where it has been.

time-read
3 mins  |
July 2024
Powering the AI boom
Money Magazine Australia

Powering the AI boom

Beyond the software and chipmakers, where will the energy come from?

time-read
3 mins  |
July 2024
Get into life
Money Magazine Australia

Get into life

Tucked inside super are products that can protect you from life's inevitable uncertainties.

time-read
5 mins  |
July 2024
Paths to home ownership
Money Magazine Australia

Paths to home ownership

Taking the road less travelled can sometimes deliver unexpected benefits.

time-read
5 mins  |
July 2024
Sold! Quick ways to add value
Money Magazine Australia

Sold! Quick ways to add value

Small, strategic changes can have a big impact on the look and feel of your home. And get you a better price on auction day.

time-read
5 mins  |
July 2024
Money lessons the kids need to know
Money Magazine Australia

Money lessons the kids need to know

Your children can learn a lot from your past money mishaps. Here are eight financial conversations I have had with mine.

time-read
4 mins  |
July 2024
Property-investing rules: are they likely to change?
Money Magazine Australia

Property-investing rules: are they likely to change?

The pressure for the government to curb the tax benefits of tax concessions, such as negative gearing and the capital gains tax discount, is unrelenting. Most recently, independent senators David Pocock and Jacqui Lambie proposed five options for paring back investment property tax concessions, with savings to the Federal budget of up to $60 billion over the next decade.

time-read
3 mins  |
July 2024
What's love got to do with it?
Money Magazine Australia

What's love got to do with it?

A rollercoaster of emotions could be driving poor crypto behaviour.

time-read
3 mins  |
July 2024
Are we ready to be cash-free?
Money Magazine Australia

Are we ready to be cash-free?

Saying goodbye to our piggy banks too soon could leave small businesses in the dark when problems arise.

time-read
2 mins  |
July 2024