Insightful Insights

“Revenue is vanity, profits are sanity and cash flow is reality”. That was a quote I heard from a very successful business man and a company I was fortunate enough to be researching in my formative years as an analyst. Thankfully, it stuck.

Poor cash management practices are the number one reason why businesses go bankrupt. Without the proper amount of cash on hand, reckless spending on unprofitable ventures or worse a business that doesn’t produce any, entities can run into trouble quicker than you think wreaking havoc on your portfolio. continue…

by Russell Muldoon Posted in Insightful Insights.

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Vocation Limited (ASX: VET), the troubled vocational education provider, has entered into voluntary administration. continue…

by Ben MacNevin Posted in Insightful Insights.

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Each quarter we provide a Boardroom Breakfast video to all Montgomery clients. For those still considering investing with us we presented a webinar that more than a thousand people registered for, so there was simply no way we were going to be able to answer every question asked. And there was a bunch! One that was asked that we promised to publish the answer to immediately was a request for the top ten stocks by Return on Equity (ROE). continue…

by Roger Montgomery Posted in Insightful Insights.

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In this interview with Ticky Fullerton, Roger comments on Glen Stevens’ speech on investing in the long run. He reinforces the idea that shareholders need to appreciate the long term benefits of companies that reinvest their dividends.

You can listen to all of the team’s television interviews through browsing our media library, view more clips here.

by Roger Montgomery Posted in Insightful Insights.

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Regular readers will know that the first question we ask in evaluating possible investments is usually a question about business quality. We take the view that over long periods of time, high quality businesses are far more likely to deliver the sort of investment performance we are looking for in terms of investment growth with a low risk of loss of capital. continue…

by Tim Kelley Posted in Insightful Insights.

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Previously we advised caution in investing in the education sector (see here) and noted that perhaps holders of securities in said sector may be taking on more risk than they’d first imagined (see here). continue…

by Scott Shuttleworth Posted in Insightful Insights.

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The Federal Government is currently conducting a number of reviews into the healthcare industry. These include the Reform of the Federation White Paper, the Private Health Insurance Review, the Primary Health Care Advisory Group, and the Medicare Benefits Schedule Review. You might have seen recent media stories about an online government survey that the public can take to provide feedback on a range of issues and options for private health insurance reform. continue…

by Stuart Jackson Posted in Health Care, Insightful Insights, Insurance.

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While I joined the speakers panel at the UBS CFO Conference in Sydney recently, several others from the Montgomery team attended the recent UBS company conference, taking notes from the presentations of many companies. The financial sector is one where we believe there is opportunity and growth and our holdings in fund managers such as Henderson, Magellan, BT Group and Challenger reflect the discovery of hitherto value in the sector as well as bright prospects. continue…

by Roger Montgomery Posted in Insightful Insights.

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Index Fund investments are mirror images of the entire investing universe. For example, an Australian Shares Index Fund consists of about 200 or 300 investments in each of the largest companies on the ASX weighted by market capitalisation. People invest in Index Funds usually for two reasons. Firstly, simplicity. You do not have to choose particular investments as you own them all and secondly Index Funds, being passive investments, are inexpensive. continue…

by Scott Phillips Posted in Insightful Insights.

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Australia’s most successful Resource service company, Monadelphous Group Limited (ASX: MND), has seen its share price decline by 75 per cent from $28.50 in February 2013 to the current $6.80. continue…

by David Buckland Posted in Energy / Resources, Insightful Insights.

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