One of the things that keeps the equity markets interesting is the way different investment attributes fall in and out of fashion. For example, in recent times we have seen a marked preference for large, dividend paying stocks, which we expect is a reflection of record low interest rates, and a quest for better income returns with low perceived risk.

A slightly less obvious development has been a move by the market away from high quality companies and into lower quality issues. Continue…

by Tim Kelley Posted in Insightful Insights.

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Discover Tim Kelley’s view on the Big Four banks, Flexigroup (FXL), Grange Resources (GRR), OzForex (OFX), ICAR (ICQ), Amcor (AMC) and the ASX in these highlights from Your Money Your Call, broadcast on Sky Business.

by Tim Kelley Posted in TV Appearances.

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Cochlear Limited (COH) is one of the businesses we have followed with interest over the years. More recently, we have been concerned that competitors like Med-El and Sonova might be closing the technological gap on COH, and threatening its dominant market position. Continue…

by Tim Kelley Posted in Companies.

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Regular readers will be aware of the very strong run enjoyed by the Big Four banks recently, and of our view that the price rises have pushed them into somewhat expensive territory. Continue…

by Tim Kelley Posted in Financial Services.

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The ASX 300 Accumulation index is up 14.7 per cent so far this financial year. The long run annual average return on Australian equities is around 11 per cent, comprised of 4-5 per cent dividends and 6-7 per cent capital growth, so we have seen more than a year’s worth of gains in under 4 months – about 4 times the normal rate. Continue…

by Tim Kelley Posted in Insightful Insights.

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Interesting in last weekend’s AFR to read about the soon-to-be released book The Worlds’ 99 Greatest Investors written by hedge fund analyst Magnus Angenfelt. Continue…

by Tim Kelley Posted in Montgomery News and Updates.

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An insight emerged from some research work we did recently on broker recommendations. What we did was gather historical data on investment returns for a selection of ASX300 companies, together with the “average” broker recommendation for each company over time. Continue…

by Tim Kelley Posted in Insightful Insights.

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The Australian residential property market has had a spring in its step recently. Auction clearance rates have been healthy, and rising prices have prompted media commentary on the possibility of an emerging housing “bubble”.

I’m no property expert, and so it may be wise to avoid putting an oar in on this debate, but let’s put wisdom aside for a moment and think about whether the application of value investing principles can add anything to a discussion on house prices. Continue…

by Tim Kelley Posted in Property.

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