The wisdom of great investors #3

The wisdom of great investors #3

“There is always something to worry about and a hundred reasons not to invest. Those who abandon stocks because of fear or uncertainty may pay a tremendous price. History has shown that a diversified portfolio of equities held for the long term has been the best way to build real wealth.”


Shelby M.C. Davis
Legendary investor and founder of Davis Advisors


In this third of a series looking at the wisdom of great investors, we focus on the importance of taking a long-term approach to investing in equities.

This chart illustrates rolling returns of the MSCI All Country World Index over 1, 3 and 5 years. The three lines represent the same index, which in turn represents the same investments in the same geographies, with returns calculated over different time periods. The results highlight two key points:

1. The effect of market volatility is magnified when considering a shorter-term investment
2. Holding equity investments for the longer-term generally provides a better return, with lower volatility.

Building long-term wealth requires patience, discipline, and an unemotional mindset.

When faced with market uncertainty, encourage your clients to reflect on the two concepts listed above. This may help them avoid portfolio changes that could sabotage their ability to reach their financial goals.

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This document has been prepared by PAN-Tribal Asset Management for use by sophisticated investors and investment professionals only. No account has been taken of the investment objectives, financial situation or particular needs of any particular person. This document is provided for general information purposes only and does not contain investment recommendations nor provide investment advice, nor is it intended to take the place of professional advice. Investors should not take action in reliance on information contained in this document. We strongly encourage investors to obtain professional advice and to read the Fund’s current Product Disclosure Statement (PDS) and the Reference Guide which forms part of the PDS before making any investment decision. Investors may invest in the Fund through a licensed financial adviser or an investment platform using the PDS for that platform which can be obtained from the operator of the platform.

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Equity Trustees Limited (Equity Trustees), ABN 46 004 031 298 AFSL 240975, is the Responsible Entity for the PAN-Tribal Global Equity Fund (the Fund) ARSN 602 036 153 and PAN-Tribal Asset Management Pty Ltd (PAN-Tribal), ABN 35 600 756 241 AFSL 462065, is the investment manager and the issuer of this information about the Fund. PAN-Tribal has appointed Davis Advisors as the sub-investment manager of the Fund. Equity Trustees is a subsidiary of EQT Holdings Limited (ABN 22 607 797 615), a publicly listed company on the Australian Securities Exchange (ASX: EQT).

None of PAN-Tribal, Davis Advisors, Equity Trustees nor any of their related parties, their employees or directors nor any other person guarantees the repayment of capital or the performance of the Fund(s) or any particular return from the Fund(s). No representation or warranty is made concerning the accuracy or reliability of information contained in this document, nor liability accepted to any person who relies on it. Past performance should not be taken as an indicator of future performance and is provided for illustrative purposes only. Shelby M.C. Davis is not associated in any way with PAN-Tribal Asset Management. This document was issued on 30 October 2018. © 2018 PAN-Tribal Asset Management Pty Ltd.