Combining knowledge and action

Welcome to a new financial year. In May and June I travelled around the country delivering my seminar on DIY investing which highlighted how to save money by looking after your investments yourself. Video excerpts from that seminar are available in the Education section of this month's newsletter.

When I meet with our investors face to face I sense that while many people hear our message about taking control of their investments, a lot of them simply do not act on the money saving recommendations. A classic and recurring example of this is the many investors that continue to pay entry fees on existing investments when they can take advantage of rebates without even needing to switch their investment.

As I have said in the past it amazes me that “People spend more time investigating and researching a refrigerator purchase than they do considering their investments or superannuation”.  To those that attended my seminar or have used our website to educate themselves I ask you to think about the following rules.


One of the areas that I highlight for our investors is that very often simple ideas produce the best results. Most people tend not to invest because they lack confidence in what to buy, when to buy and how to go about it. However the truth is that rather than earning interest (lending your money) and going broke safely you need to invest in real assets like shares of real companies (not speculative stocks that have no assets) or real property.  

With simplicity in mind the team at 2020 created the BlueChip Series that allows you to buy a portfolio of shares in high quality companies in a very cost effective manner. You can easily build your portfolio regularly adding money to your initial investment. The BlueChip20 portfolio lets you own direct shares in Australia’s 20 largest companies and profit from the growth of these companies whilst receiving regular tax effective dividend income.

So this year as you review the asset allocation for your personal investments and your superannuation make a commitment to invest a core amount (30-40%) of your portfolio in high quality shares. By utilising the separately managed account technology of our BlueChip Series you can now do this simply and easily. Once you take this action try and maintain a long term perspective and filter out all of the “noise” that you read in the papers. No one ever got rich chopping and changing their investments every few months. Real wealth is attained by investors who recognise the value of buying and holding shares of quality companies for the long haul. So if you are the procrastinating type I encourage you to change your ways and take action today. In the long run you will glad you did.

This is an excerpt of Michael Lannon's monthly commentary. Read the full commentary here.




Michael Lannon
Managing Director