In today’s Weekend Daily Reckoning we’re going to sit down with the Chairman ofGowdie Family Wealth, Vern Gowdie. He’s been on the Australian financial scene for over a quarter of a century, and he’s not afraid to call things as he sees them. Perhaps that’s why his presentation was the surprise hit of the World War D conference. So we’re going to talk a little bit about that today, plus some insight into his latest report, which went out yesterday.

Callum Newman: You generated a huge level of interest after your speech at World War D. Attendees literally surrounded you afterwards wanting to know more. Why do you think your talk resonated so much with them?

Vern Gowdie: My presentation was a summary of what I’ve learned from nearly three decades in the investment industry. The philosophy underpinning my family wealth strategy is simple —identify at what point in the value cycle (under, fair or over) you are considering buying or selling into; understand the downside risk in any investment you are considering, and if in doubt err on the side of caution and remain in cash.

My guess is the presentation struck a chord with attendees because they have also had their fair share of ‘hit and miss’ investments. These ‘school fees’ are an expensive education on how treacherous the investing world can be.

The ‘baby boomer’ and retiree attendees appreciate they can ill-afford to make a costly mistake at this stage of their lives. Recouping a significant capital loss becomes so much harder when you are in retirement or with retirement looming.

The simple model portfolio I’ve constructed also showed how it’s possible to outperform the majority of investment managers, at a fraction of the cost. In a low growth, low return investment environment minimising expenses is imperative.

The majority of people who approached me after the presentation wanted to share their investment horror stories and express their appreciation for being shown a straightforward solution to their wealth creation endeavours.

The Chairman in Action at World War D

click to enlarge

CN: In your speech you mentioned how Australians are generally over-exposed to shares, especially in their superannuation. Is this the biggest risk you see right now for investors?

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