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Chris Cuffe on investing in 2011

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by Peter Switzer

Chris Cuffe was the man who was seen as instrumental for building up the brand name of Colonial First State and made Australian financial history with the size of his payout. He got it — the big payout — because he gets it, the game of investing in stocks, and so his views on the market ahead are always worth noting.

Yesterday I interviewed him for my SWITZER program on Sky News Business Channel and it will be shown tonight. While I’m a cautious optimist on 2011, driven by views of the likes of Goldman Sachs and some bond experts who also like stocks this year, Chris is more cautious.

And even more intriguing was his revelation that in his game — fund managing or money managing, which he’s doing nowadays — it’s one area of endeavour where time as well as experience doesn’t guarantee that you become really brilliant at what you do. The market can still baffle you, he argues.

He says accountants, lawyers, tradesmen, sportsman, etc. get better over time and better with practice but investing has so many traps that bring a smart expert undone. The 2007 GFC Crash was a classic example.

That said, he thinks experience helps you find the landmines before others and that can help you make better decisions. He thinks there are landmines ahead linked to slow economies and debt but he still is invested with a big number of fund managers who he thinks have a good chance of avoiding a lot of these landmines.

Check out the interview tonight or wait for it on this website tomorrow. His views are always worth considering.

Important information:This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. For this reason, any individual should, before acting, consider the appropriateness of the information, having regard to the individual’s objectives, financial situation and needs and, if necessary, seek appropriate professional advice.

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Published on: Wednesday, February 16, 2011