Editor’s Pick
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From Private Equity to Zombie – The ABC of capitalism
Roger Montgomery
June 2, 2022
We have long been critics of the profitless prosperity doctrine that pervaded financial markets while money was free. The doctrine permitted companies with no profit, and no prospect of making any, to invest private equity and family office money in the pursuit of gaining market share. Often this was achieved by crushing old-world incumbents into submission, if not oblivion. continue…
by Roger Montgomery Posted in Companies, Editor's Pick.
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With markets falling, is it safe to invest again?
Roger Montgomery
May 25, 2022
In the famed 1970s thriller, Marathon Man, Nazi dentist Dr Christian Szell – who is looking for a stash of stolen diamonds – repeatedly asks the character played by Dustin Hoffman “Is it safe?” Right now, many people are likely asking the same question about investing in the share market. continue…
by Roger Montgomery Posted in Editor's Pick, Market commentary.
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If Buffett is buying, should I?
Roger Montgomery
May 24, 2022
Equity markets have borne the brunt of investor panic. Rising interest rates, the biggest bond market rout since the 80s, persistent inflation from labour shortages and consequent supply chain constipation, as well as an entrenched military conflict in Ukraine, lockdowns in China, and finally an admission from the U.S. Federal Reserve they took too long to commencing reversing hyper-accommodative monetary policy is all but a pile-on for investors desperately seeking returns above the punitive rates offered by cash. continue…
by Roger Montgomery Posted in Editor's Pick, Global markets.
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Where to invest if the economy heads for a hard landing
Roger Montgomery
May 20, 2022
Right now, there’s no shortage of pessimistic forecasts for the U.S. economy. You need only look at recent reports from the likes of Morgan Stanley, Goldman Sachs and JP Morgan. These bleak forecasts have many U.S. investors talking up the probability of a bear market in equities. In this environment, careful stock selection will be more important than ever. continue…
by Roger Montgomery Posted in Editor's Pick, Global markets, Market commentary.
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Why every setback is accompanied by a different narrative
Roger Montgomery
May 16, 2022
In this week’s video insight Roger discusses why setbacks are a necessary part of investing, especially for those keen to realise better returns. Remembering that the lower the price you pay, the higher your returns, it makes sense that we should welcome market pullbacks. Eventually, there will be an end to rising interest rates and eventually, inflation will peak. continue…
by Roger Montgomery Posted in Editor's Pick, Market commentary, Video Insights.
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What Toyota’s update tells us about supply chain disruptions
Roger Montgomery
May 12, 2022
We’ve all heard stories about new-car buyers waiting months for some in-demand models, not to mention the incredible spike in used-car prices. The same factors are behind both issues: supply chain disruptions that are plaguing most carmakers and original equipment manufacturers (OEMs). Recent reports by Toyota and Polaris paint a picture of these disruptions, and how long we can expect them to play out. continue…
by Roger Montgomery Posted in Consumer discretionary, Editor's Pick.
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Australia’s residential property market to soften
David Buckland
May 10, 2022
It never ceases to amaze me that when a sector that has enjoyed a roaring bull market starts to turn the ‘experts’ try to out-do one another in giving pessimistic forecasts. And that is now happening with Australia’s residential property market, where the general consensus is that prices could soon drop by 15 to 25 per cent due to rising interest rates. continue…
by David Buckland Posted in Editor's Pick, Property.
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Rates go up; house go down
Roger Montgomery
May 6, 2022
As we predicted last November, Australian house prices have now topped out and begun their march lower. A quick visit to any of Australia’s holiday hotspots will reveal a testament to the sudden end of the most recent boom – a plethora of properties advertised for sale at the vaguest possible price known; ‘Contact Agent’. continue…
by Roger Montgomery Posted in Editor's Pick, Property.
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Is Aeris Resources purchase of Round Oak Minerals a good deal?
David Buckland
May 2, 2022
We have been asked by clients whether the $234m acquisition by Aeris Resources (ASX:AIS) for Washington H Soul Pattinson’s (ASX:SOL) Round Oak Minerals is a good deal? continue…
by David Buckland Posted in Editor's Pick, Energy / Resources, Stocks We Like.
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What to make of KKR’s bid for Ramsay Health Care
Andreas Lundberg
April 21, 2022
As you’ve probably read in the press, a consortium led by US-based investment behemoth, KKR & Co, has just lobbed a $20 billion bid for Ramsay Health Care (ASX:RHC), Australia’s dominant private hospital business. This values each RHC share at an all-time high of $88, well above the previous day’s close of around $64. So it’s potentially good news for RHC investors – including The Montgomery Fund. But what are the chances of the deal going through? continue…
by Andreas Lundberg Posted in Companies, Editor's Pick, Stocks We Like.
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