Yesterday I had lunch alone with Marriott\u2019s CEO and my consultant. I took a particular question to him, based on how I look at and plan for a client\u2019s income: To discuss the reliability, of the predictability, of the income from their funds. If my English works here.<\/p>\n\n\n\n
Meaning, the income anticipated from an arrangement of funds in your annuity or income focussed accounts; how much I can reply on that. He said with a very high degree, to within 5 years over a 30 year timeline. That was good to hear. We discussed it further.<\/p>\n\n\n\n
Then we talked about some current market conditions and valuations, in particular what global equity returns have been over the past year or two. Concepts such as market concentration and over-pricing was discussed. He explained how the 10 largest global stocks have a weighting of 35% of the market, and that this was too high. He expects the \u2018bubble\u2019 of overvaluations to come off and prices to decrease. This opinion was the same as what I listed to from Allan Gray Fund Managers on a live presentation last week.<\/p>\n\n\n\n
Marriott are currently invested in only a very small amount of two of these companies, and he says they won\u2019t buy more because the prices are too high for the very small income they provide. The concept of \u2018don\u2019t pay too much for an income stream\u2019, is what\u2019s at play here. Like for us, don\u2019t pay too much for a property you are going to buy vs. the rental income you will get.<\/p>\n\n\n\n
Always great to get alone-time with someone like him.<\/p>\n","protected":false},"excerpt":{"rendered":"
Yesterday, I had lunch with Marriott’s CEO and my consultant, discussing the reliability of income from clients’ funds. He assured me of predictability over a 30-year timeline. We also talked about current market conditions and high valuations, particularly regarding the influence of top global stocks, and the importance of not overpaying for income-generating assets.<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"advanced_seo_description":"","jetpack_seo_html_title":"","jetpack_seo_noindex":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-247","post","type-post","status-publish","format-standard","hentry","category-weekly-thoughts"],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/kevinmurray.co.za\/index.php?rest_route=\/wp\/v2\/posts\/247","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/kevinmurray.co.za\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/kevinmurray.co.za\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/kevinmurray.co.za\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/kevinmurray.co.za\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=247"}],"version-history":[{"count":1,"href":"https:\/\/kevinmurray.co.za\/index.php?rest_route=\/wp\/v2\/posts\/247\/revisions"}],"predecessor-version":[{"id":248,"href":"https:\/\/kevinmurray.co.za\/index.php?rest_route=\/wp\/v2\/posts\/247\/revisions\/248"}],"wp:attachment":[{"href":"https:\/\/kevinmurray.co.za\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=247"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/kevinmurray.co.za\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=247"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/kevinmurray.co.za\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=247"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}