February 15, 2017
If we look at the overall market, the ASX200 Index is up close to 3% in the first two weeks of February, so across the overall market, the news so far appears to be pretty good. In this video Portfolio Manager Tim Kelley discusses a few stocks held in The Montgomery Fund.
by Tim Kelley Posted in Editor's Pick, Video Insights
February 8, 2017
Lately, we’ve seen an increasing number of media articles about how Chinese ‘investors’ are snapping up our real estate assets – and, in so doing, pushing prices beyond the reach of many Australians. How do they do it? Here’s the answer, direct from the South China Morning Post… continue…
by Roger Montgomery Posted in Editor's Pick, Property
February 7, 2017
February 2, 2017
In September 2015, Howard Marks wrote a memo entitled, ‘It’s Not Easy’, a reflection on Charlie Munger’s famous aphorism about investing, “It’s not supposed to be easy. Anyone who finds it easy is stupid.” The memo reflected upon the requirement for second level thinking in order to be a successful investor. continue…
by Roger Montgomery Posted in Editor's Pick, Financial Services
January 27, 2017
Let me start by making something clear. The best returns will not come from the large-cap blue chips that so many baby boomers are invested in. They are likely to come from the stocks that have been beaten up the most in recent months.
by Roger Montgomery Posted in Companies, Editor's Pick, Market commentary
January 25, 2017
Since hitting a high of around $15 in mid-2016, McMillan Shakespeare (ASX: MMS) has fallen to around $11. At this price, and with a demonstrated ability to consistently earn high returns on equity, it seemed like a good candidate for inclusion in our portfolios. So we conducted some due diligence. The outcome is a must-read for all would-be investors. continue…
by Scott Shuttleworth Posted in Companies, Editor's Pick
January 23, 2017
Investing is a sport for the mind. It requires an enormous amount of training and continual refinement. But, like for any sport, it’s not just about the number of hours you put in; it’s also about the productivity of the effort. So how do you boost the productivity of your mind? By practising ‘Mindfulness’.
by Andrew Macken Posted in Editor's Pick, Investing Education
January 20, 2017
Since early November 2016, owners of Australian bank shares have been heartened to see stock prices rise sharply. But this could be as good as it gets – at least for a while – and it may be time for shareholders to take some profits and seek out opportunities in over-sold small and midcap companies. continue…
by Roger Montgomery Posted in Companies, Editor's Pick, Financial Services
January 18, 2017
The outlook for Australia’s banks in 2017 is now tougher given the rerating of the stocks the last quarter of 2016. The expectations built into share prices have clearly lifted in 2017. The big change we expect is a slowing of loan book growth. If interest rates have bottomed, affordability of debt will suffer. Market expectations imply a continuation of the growth rates we’ve seen over the past decade or two, but if the cost of debt stops falling this could act as a drag on loan book growth and the broader economy. Funding costs continue to rise, pressuring net interest margins. Slowing loan book growth is also likely to increase competitive pressure as banks look to gain market share as an offset.
by Stuart Jackson Posted in Editor's Pick, Financial Services