Following on from my recent post about “the fog of the sharemarket” I took some time out to consider some of the lessons from that short but fateful walk along George Street or soon to be called George Street Index.
The more I think about it, the more firmly I believe that George Street is a perfect representation of the sharemarket. The first time you walk along George Street you would consider that it is chaotic, busy, congested and to the uninitiated a little dangerous. However it’s also a living, breathing marketplace full of fantastic businesses, employing millions of people that serve us each and every day.
Just like the sharemarket!
To bring some personality and colour to this discussion we officially launched the George Street Index on the 1st of July. The George Street Index (@GeorgeStIndex) was created with a starting value of $100,000 and is made up of 15 fantastic Australian businesses that each of us undoubtedly use every single day of the week (in some shape or form).
Take a moment to think about your monthly spend on your home loan, credit card, insurances, superannuation, investments, groceries, alcohol, cigarettes (if you smoke) clothing, shoes, fun stuff and holidays, and I would be very surprised if several of these businesses do not appear on your list. The businesses in order of their weighting are Commonwealth Bank, ANZ, National Australia Bank, Westpac, Woolworths, Wesfarmers, Telstra, Westfield, Coca Cola, Tabcorp, Suncorp, IAG, Super Retail Group, Flight Centre and JB Hi-Fi.
So the next time someone says that the sharemarket is risky, tell them about the George Street Index and the benefits of investing in those businesses we see and use everyday. Better yet start following George on Twitter @GeorgeStIndex and join in the conversation #GeorgeStIndex.
Before you consider purchasing any of these businesses, it imperative that you get some personal financial advice from a licensed Financial Planner, preferably one of the team at Evalesco!
In the interests of full disclosure some members of our team are shareholders in some of the George Street Index businesses mentioned above.