Too often when we read about the share market or discuss topics concerning investment we are presented with a complexity and diversity of options and advice, but the key to successful investment in the share market can be straight forward and even simple!
One of the underpinning investment philosophies applied at Income Solutions was detailed in a book that was published in 2007 titled ‘The Little Book of Common Sense Investing by John C. Boyle’. Since this book was published the share market has tumbled and soared but the evidence over the last 13 years has shown that the principals applied and expressed in this book have endured and served investors at Income Solutions and more broadly very well.
The stated principal of investing in the All Industrial Index allows people to invest in a wide range of publicly listed share market stocks and then leave it alone. What a lot of us may not realise is the companies that we are investing in are already part of our everyday lives and the following diagram provides an example of how:
This table demonstrates that by investing is the Industrial Index you are investing in companies and products that provide a platform for our lifestyles. Also featured is ‘the good, the bad and the ugly’ as by mentioning ABC Learning Centre’s we demonstrate it is not always ‘oranges and sunshine’ and sometimes companies do fail, but a lot do not and continue to thrive and provide investors with dividends and returns. The following table shows a snap shot of some of the companies in the All Industrial Index.
When a company may not be doing so well such as Qantas at the moment other companies may be thriving such as Woolworths, demonstrating that investing in shares doesn’t have to consist of prediction and expertise. Applying the principal of keeping it simple and investing in the All Industrial Index has proven over time to be a sound and effective long term option for investors.