Why it’s time to invest in quality businesses
For the past 18 months, Australian investors have seen a ‘junk rally’ in which lower quality businesses have outperformed. But our research shows that quality is now better value than it has been for many years.
Tim joined Montgomery in July 2012 and is a senior member of the investment team. Prior to this, Tim was an Executive Director in the corporate advisory division of Gresham Partners, where he worked for 17 years. Tim focuses on quant investing and market-neutral strategies.
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.
Peter Ralph
:
Interesting because Buffet thinks valuations are fine relative to where interest rates are. Latest U.S. earnings were strong. The Australian market has little going for it.
arehttps://www.cnbc.com/2017/10/03/billionaire-warren-buffett-says-stock-valuations-make-sense-with-interest-rates-where-they-are.html
peter cardillo
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I liked the article and very much agree on the quality businesses thesis. A point of correction is that from my reckoning the Montgomery Fund has tracked sideways for most of 2017 as well as 2016 as stated in the article. I have funds invested in several other ‘value investment’ managers who have managed somehow to achieve reasonable returns over the past 2 years.
Mads Larsen
:
Great insight. It would be good to track this index, eg in the monthly fund status updates