Nevstar Links 16 May 2025
Welcome back to the Nevstar Links, your guide to some of the best articles on markets and investing available on the internet.
Today is Friday 16th May and it is possible today that you will feel an irresistible 'need for speed'. Yes, it was on this day in 1986 that the moviegoing public was first introduced to Maverick and Goose in the 1980s blockbuster Top Gun. The movie catapulted Tom Cruise into 'A' list movie super-stardom, a role he continues to fill today with the upcoming release of the final Mission Impossible film. Top Gun was comfortably the #1 box office attraction in 1986 pulling in around US$176m domestically and a similar amount globally. It's time to buzz the tower.
Onto the links which has articles on relics, reinvestments, and retirements.
Learn How To Compound Your Investments - DRIP by DRIP
One of the great ways to turbo-charge your investment returns is to elect into a 'dividend reinvestment programme' or DRIP. This takes the cash dividend that you receive as an investor and reinvests it into additional shares of the company you own. Doing so has several tangible benefits as this article deftly explains.
"Often companies permit investors to purchase fractional shares, allowing them to roll their entire dividend into new stock and helping to compound their gains. And some companies even offer DRIP shares at a discount to the current share price, getting you a better price than if you had bought the same shares on the open market."
Should You Go For Gold?
The investing success story of 2025 so far is probably a lump of gleaming yellow metal. The price of the 'barbarous relic' has increased by over 23% this year amidst economic, political and market turmoil. So should you have an allocation to gold in your investment portfolio? The Humble Dollar offers his opinion on the matter.
"A reason for its longevity is perhaps that gold, unlike traditional paper money, isn't under the control of any government, helping to preserve its value. By contrast, it's easy for governments to issue new currency, which has the effect of debasing the value of existing money in circulation, including consumers' pay-checks and savings."
Not All Financial Advice Is Useful
Helpful little blogpost from our friend Ben Carlson discussing the impracticalities of certain statements that have historically been considered 'prudent' financial advice. The world has changed and effective financial advice needs to be practical, pragmatic and personal.
"For example - ignore the noise. Excellent advice. They hand this quote out to financial advisors the day they earn their CFP. And it's impossible to follow in the information age.
Everyone now has a supercomputer in their pocket that's a constant barrage of alerts, news, messages and social media posts about what's going on in the world."
Warren Buffett Life Lessons That Having Nothing To Do With Shares
Great piece from Market Watch divining some terrific life lessons that the inimitable Warren Buffett has managed to teach the world during his seven decade career as an investor. Sometimes its not all about money.
"I've always said I don't trust anyone until I have heard them say 'I don't know' and 'I was wrong.' Buffett's willingness to do both has been among his greatest and most profitable attributes. He has frequently emphasized that he invests only within his 'circle of competence,' meaning he only invests in what he knows. And he admits there is a lot he doesn't know."
See also: Does Buffett Farewell Represent Peak America
Who is Greg Abel?
And speaking of Berkshire Hathaway, what do we know about the man that has been anointed as the next CEO? The task of replacing an irreplaceable CEO falls to Greg Abel and this is an interesting profile piece from Quartr about him.
"As CEO, Abel will inherit leadership of a 1.164 trillion dollar company with a track record unmatched in corporate history, shaped over six decades under Buffett's management. He'll also take charge of a balance sheet bolstered by a substantial and steadily growing cash position. Speaking at the meeting, Abel emphasized continuity."
Quote of the Week
"That was some of the best flying I've seen yet, right up to the part where you got killed. You never, never leave your wingman."
Michael Ironside as Jester, Top Gun
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Have a great weekend.
The Nevstar
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Neville Giles
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