What is the secret of Roger Montgomery’s A1 Montgomery Quality Rating?
In his final appearance on Switzer TV for 2011, Peter Switzer asked Roger Montgomery to reveal his top 20 A1 stock picks. So how does a business achieve Roger’s coveted A1 MQR? Unlike conventional wisdom, Roger’s A1s aren’t necessarily ‘blue chips’. Wesfarmers and Qantas may be big businesses, but they don’t make his A1 grade. Businesses that achieve Roger’s A1 or A2 MQR have the lowest probability of a ‘liquidity event’. His A1s are less likely to raise capital, borrow more money, default on debt repayments of breach debt covenants – Roger would be very surprised if any of his A1s went bust! A follower of Roger’s blog went back five years and created a hypothetical portfolio of A1 businesses. The portfolio returned 60% per annum. Watch the interview.
Roger Montgomery is the Founder and Chairman of Montgomery Investment Management. Roger has over three decades of experience in funds management and related activities, including equities analysis, equity and derivatives strategy, trading and stockbroking. Prior to establishing Montgomery, Roger held positions at Ord Minnett Jardine Fleming, BT (Australia) Limited and Merrill Lynch.
This post was contributed by a representative of Montgomery Investment Management Pty Limited (AFSL No. 354564). The principal purpose of this post is to provide factual information and not provide financial product advice. Additionally, the information provided is not intended to provide any recommendation or opinion about any financial product. Any commentary and statements of opinion however may contain general advice only that is prepared without taking into account your personal objectives, financial circumstances or needs. Because of this, before acting on any of the information provided, you should always consider its appropriateness in light of your personal objectives, financial circumstances and needs and should consider seeking independent advice from a financial advisor if necessary before making any decisions. This post specifically excludes personal advice.
