articles by Andrew Macken
May 7, 2014
For investors analysing the world and trying to identify asset mispricings, overconfidence can be very costly. We are not talking here about social confidence, we are talking about the confidence in the precision of the accuracy of our predictions as humans. It turns out, we humans are naturally very overconfident in the accuracy of our predictions – and we need to be cognisant of this. Continue…
by Andrew Macken Posted in Insightful Insights, Investing Education.
April 28, 2014
While we are not in the business of spreading rumours, we are in the business of monitoring global economic changes that are relevant for Australian investors. Today, we saw iron ore producers fall quite significantly in the afternoon. At the time this blog post was written, FMG was down 5 per cent, ARI down 5 per cent and AQA down 6 per cent. Continue…
by Andrew Macken Posted in Energy / Resources.
April 23, 2014
Tomorrow will mark the initial public offering of Burson Group, Australia’s largest trade-focused distributor of automotive aftermarket parts. Based on an initial evaluation, we believe the business is of high quality and have participated in the offering. Continue…
by Andrew Macken Posted in Consumer discretionary, Value.able.
April 23, 2014
The Wall Street Journal recently published a very interesting chart that showed declines in inflation rates over the last year in many countries and financial centers. This perhaps seems surprising given the relentless “quantitative easing” that has been taking place in the US, not to mention the bond-buying program in the Eurozone. Continue…
by Andrew Macken Posted in Economics, Insightful Insights, Value.able.
April 16, 2014
A couple of years ago, I was fortunate enough to attend a breakfast in New York hosted by our then Deputy Prime Minister and Treasurer, Wayne Swan. Mr Swan delivered a presentation on the Australian economy to global market investors and observers. Continue…
by Andrew Macken Posted in Value.able.
April 11, 2014
In these highlights from Your Money Your Call, broadcast on Sky Business on 11 April, Andrew Macken discusses the reasons for the recent turbulence in US equity markets, the state of the Chinese economy and the associated risks for our own, and looks to what the future may hold for Australian interest rates and currency. Watch here.
by Andrew Macken Posted in TV Appearances.
April 9, 2014
Since 2008, the US has been pursuing an unconventional style of monetary policy called quantitative easing – or QE. This has arguably had the effect of reducing interest rates and inflating asset values. Continue…
by Andrew Macken Posted in Economics, Insightful Insights.
April 8, 2014
Australia is not the only nation in which property investing and speculation has become a national sport. For years now, the Chinese property market has been booming. Prices have been strong and fixed-asset investment into the sector has been growing at around a staggering 20 per cent per annum. Continue…
by Andrew Macken Posted in Global markets, Property.
April 2, 2014
The team at Montgomery have a simple mandate – generate satisfactory returns over the very long run for thousands of investors, by investing in high-quality businesses at rational prices. If sufficient quality is unavailable, then funds are kept in the safety of cash. This helps mitigate the risk of permanent capital loss. Continue…
by Andrew Macken Posted in Companies, Insightful Insights, Value.able.