The Purposeful Investor
The Purposeful Investor is a fortnightly podcast, featuring digestible but thought-provoking and intelligent conversations about markets, leadership, psychology, and the lessons learnt along the way.
Your hosts, Aden and David are from Capital Partners Private Wealth Advisers. They support successful Australian families to create a prosperous future for themselves and those they care for.
Disclaimer: The information on this podcast is of a general nature only and may not be relevant to your particular circumstances. The circumstances of each investor are different, and you should seek advice from a professional financial adviser who can consider if the strategies and products are right for you. In any instance where information is based on historical performance, we would advise that this is not a reliable indicator of future performance. You should not rely solely on this material to make investment decisions and should seek professional advice.
© 2024 Capital Partners Consulting Pty Ltd (AFSL 227148) trading as Capital Partners Private Wealth Advisers ABN 27 086 670 788.
The Purposeful Investor
Episode Four | The evolution of investing
In this episode of The Purposeful Investor, Aden speaks with Capital Partners Founder and CEO, David about the evolution of investing from the early 20th century to the present day.
They discuss the three major phases - Investing 1.0 which saw stock picking dominate the market in the 1950s and 60s limited by a lack of historical data and computing power. The rise of index funds in the 1970s marked Investing 2.0, made possible by increased data availability and the efficient market hypothesis. Systematic investing emerged in the 1990s as Investing 3.0, leveraging factors like company size, price, and profitability that research showed provided higher expected returns.
David and Aden provide statistics demonstrating index funds have significantly outperformed actively managed portfolios over long periods. The episode offers insight into how the investing industry has advanced its practices by incorporating evidence from decades of market data.
Materials
Pursuing A Better Investment Experience
- (0:00-0:16) Introduction
- (0:16-1:42) Personal wins of the week
- (1:42-2:18) The three phases of investing
- (2:18-3:28) Investing 1.0
- (3:28-7:02) Investing 2.0
- (7:02-9:00) - Benefits of diversification
- (9:00-11:02) Investing 3.0
For more information on Capital Partners visit capital-partners.com.au.
Have a question? Email us ask@capital-partners.com.au.
This episode provides general advice only. Always refer to your financial adviser for advice about your personal circumstances.
Capital Partners Consulting Pty Ltd AFSL 227148 trading as Capital Partners Private Wealth Advisers ABN 27 086 670 788.
