Investing in Blue Chips for the Long Term – 2 Stars (6/11/2012)
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.
DON STEWART
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Goyder’s acquisition of Coles at about double it’s actual value has benefited no-one but him and his Board of directors. Shareholders are still suffering with poor ROE while management enjoy massive pay increases because they now look after a bigger company.Performanse incentitives for Goyder could not be met last year so they changed the “goal posts”.
Keith Love
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Hi Roger
Great article on Wesfarmers in Eureka Reprot this week. This is another company that is regarded as blue chip but isn’t. When you see supposed captains of industry paying soooooo much over the top for an acquisition (Coles) and changing the CEO’s performance targets (because they were too hard) to allow him to earn his $6mill for achieving a return on equity of less than 10%, you start to wonder who is running some of these big companies.
Keep up the good work.