Why start with evidence-based principles

Read Full Blog Here

Shares play a different role than property, and that’s their superpower. In this third Wealth First Principles instalment, we outline a simple, rules-based framework to build a resilient share portfolio that complements property: liquid, globally diversified, tax-aware, and low-cost. The evidence is clear: most active managers and stock-pickers underperform over time. Instead, capture the market return with index funds or diversified ETFs, then let discipline, not prediction, do the heavy lifting.

We unpack what truly drives returns (the Equity Risk Premium), why volatility is the “price of admission,” and how dividends and franking credits fit into a broader, global allocation. Avoid the big four mistakes: over-trading, timing, performance-chasing, and abandoning strategy in downturns. For investors seeking extra robustness, we discuss rules-based alternatives to plain market-cap indexing (equal-weight, value, quality, factor tilts), useful now given concentration risks.

Because Australia is ~1.7% of developed markets and concentrated in banks/resources, we make the case for meaningful global exposure to technology, healthcare, and leading consumer brands. Finally, a practical blueprint: set goals and allocation, pick low-cost structures (e.g., DHHF, VDAL, or factor-tilted ETFs), rebalance to a written policy, and stay the course. Do this consistently, and shares become a dependable engine alongside property for decades.

Read Stuart's latest book? He's only got 19 reviews on Amazon so far, if Wealth by Design helped you, leaving one would mean a lot: https://www.amazon.com.au/review/create-review?asin=192318654X

Run your own business? 

Check out Business by Design, Stuart and Mena's show on starting, growing and exiting a business, at https://www.businessbydesignpodcast.com/

Our most popular free guides:

Over the years we've written hundreds of articles. These three bring our best thinking together on the topics that matter most right now: choosing a super fund, debt recycling, and navigating the new tax changes.

Download them here

Got a question for the podcast?

Email us at [email protected]

Subscribe to my weekly blog:

Stay connected here

Important

This podcast provides general information about finance, tax and credit. It doesn't take into account your specific objectives, financial situation or needs, so you need to assess whether it's relevant to your circumstances before acting on it. If you're not sure, speak to a licensed, trustworthy professional.