Insightful Insights

The financial markets seem to have a lot of moving parts at the moment. Relatively swift changes to exchange rates, commodity prices, interest rates, GDP outlooks and share prices have made it increasingly challenging for a value investor to arrive at a clear view on how best to allocate investment funds. continue…

by Tim Kelley Posted in Insightful Insights.

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Part one of a two part series on the demise of Australia

Last week’s year-six father and son breakfast was never expected to throw up any investment ideas. Indeed, I was so focused on the kids that I wasn’t even listening out for investment insights when one hit me, or, to be more accurate, brushed gently before me.
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by Roger Montgomery Posted in Economics, Insightful Insights.

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Kopi Luwak refers to the beans of coffee berries once they have been eaten and excreted by the Asian Palm Civet. Passing through a civet’s intestines, the beans are then defecated with other fecal matter and collected, dried and eaten or drunk… or perhaps eaten by drunks.
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by Roger Montgomery Posted in Economics, Insightful Insights.

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Back in January (you can find our older post here), we produced the following table showing how, since 2010, Credit Corp Group (ASX: CCP) management have generally been conservative when providing initial guidance on the year ahead, and then how they have announced upgrades in a useful, if not predictable, way each November, February and May.
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by Russell Muldoon Posted in Insightful Insights.

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As you are no doubt aware, we have been keen followers of the mining services sector – before the wholesale sale of the Montgomery [Private] Fund’s exposure back in April last year.
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by Roger Montgomery Posted in Energy / Resources, Insightful Insights.

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Seth Klarman is the author of an out-of print book on value investing that sometimes sells for several thousand dollars. He is also the founder and CIO at Boston-based fund manager Baupost. His latest letter has been excerpted across the internet and we thought the following section was relevant for those investors wondering how to make sense of the current boom in financial stocks, the bust in resources and whether the latest rate cut from the RBA makes any difference at all.
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by Roger Montgomery Posted in Insightful Insights.

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Despite the buoyancy in the stock market over the past 12 months, it has been surprising to see so few new businesses apply for listing on the Australian Securities Exchange. Fewer still we would deem to be quality.
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by Russell Muldoon Posted in Insightful Insights.

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Last week, within the first few minutes of sitting in a conference room listening to an update by Terry Smart, one of Australia’s smartest retailers, he announced a sales and profit upgrade. Naturally having a position in JB Hi-Fi (JBH) is pleasing.
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by Ben MacNevin Posted in Companies, Insightful Insights.

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The world according to Charles Munger.

Why are bankers like heroin addicts? Why is the USA unlike Japan? Why does QE concern Charlie Munger? Are Greek’s built for capitalism? If Charlie Munger was running US healthcare how would you fare?
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by Roger Montgomery Posted in Insightful Insights.

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Healthcare is one of the investment themes we like at Montgomery. In most OECD countries, healthcare spend has been growing at around GDP +2% for many decades, and ageing populations will provide a tailwind for some time to come. This is a challenge for governments, who can’t readily grow revenues faster than GDP and so will need to reduce their share of the total spend. However, with demand growing, we expect that private contributions will increase to fill the gap. Baby boomers who can afford to look after themselves will likely choose to do so.
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by Tim Kelley Posted in Health Care, Insightful Insights.

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