Lessons from 100 years of capitalism

If you had invested in the US share market over the past century, you would have participated in one of the greatest wealth creation stories ever recorded.

A dollar broadly invested in the US share market 100 years ago would have compounded by a staggering 1,500,000% over the course of the century.

It’s an extraordinary statistic.

MacDonald Wealth Winter Update

The best time to have a fire drill is when the building’s not already burning.

The reason is simple, because any mistakes made during a drill are much less expensive than mistakes made during the real thing.

Why do we mention this?

Because if we can extend this analogy to investment markets, the markets were definitely not ‘burning’ in the second quarter of 2026. Far from it. Investors in fact have plenty of reasons to be very pleased about returns over the recent few months.

3 Lessons from Investing’s “Moneyball” Moment

Michael Jensen, then an economist at the University of Rochester, used the data to analyze individual fund performance between 1945 and 1964. He found that individual mutual funds were unable, on average, to outperform a strategy that simply bought and held a marketwide portfolio. In fact, there was scant evidence that any individual fund delivered better returns than you’d expect by random chance.

After 100 years of data, the story has stayed the same. Only more so. Stock returns compounded at about 10% per year over the full century.

What does this mean for average investors? 

A look back at when the world feared the worst

When the Market Siren Sounds, Will You Know What to Do?

As a kid growing up in Kansas, we regularly did tornado drills in school. When the siren sounded, we’d rush downstairs into the auditorium and huddle in its southwest corner, because tornadoes in Kansas tend to move northeast. After a few minutes of hunkering down, we’d head back to class. Nobody particularly loved those tornado drills, but everyone understood why they mattered.

MacDonald Wealth Summer Update

Following a volatile but generally profitable first three quarters of the year, the majority of markets delivered further gains over the final three months of 2025.

International share markets provided the strongest gains, with the New Zealand and Australian share markets taking a back seat over the quarter. Similarly, with global interest rates having receded from their post-Covid peaks, returns from fixed income assets delivered in line with expectations – moderately positive.

In times of uncertainty, investors with a plan should stick with the plan

Over the past few days as global politics create uncertainty and global share markets have responded, I thought it would be good to reflect on markets and provide some perspective on what is happening and as investors, what can or should we do about it, especially when it comes to our investments & KiwiSaver funds.

The longer I’ve been in this industry, the more my perspective on market downturns—corrections, recessions, and the like—has evolved.

Financial Planning for Your Retirement

Planning for retirement is a crucial step toward ensuring financial security in your later years. A key part of this process is determining your "retirement number"—the amount of savings required to maintain your desired lifestyle.

Understanding this number helps shape your savings strategy and investment decisions, guiding you toward a comfortable and secure retirement. 

You can’t put a number on happiness

“What is your number?” That is the catch phrase of a popular advertisement that runs and re-runs amongst financial advising companies.

These types of campaigns are popular as many people will have a jolt of panic at some point just past mid-life, where they think, “Will I have enough for my retirement? I’d better get prepared.” Having a target ‘number’ can help you to understand just how big the mountain you must climb, really is.