Investing Education
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Harsh but true
Lisa Fedorenko
April 16, 2018
Over the years, I’ve received copious advice which has made me a better investor. Today I wanted to share three pieces of rather direct advice which helped me make the most out of meetings. continue…
by Lisa Fedorenko Posted in Insightful Insights, Investing Education.
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Jeremy Grantham says beware the market ‘melt-up’
Roger Montgomery
April 11, 2018
Alas, there’s no magic signal to tell us when this market could savagely correct. The latest note of caution comes from famed US investor, Jeremy Grantham. He believes we are seeing a ‘melt-up’ in the stock market – the final stages of a great bubble near to bursting. continue…
by Roger Montgomery Posted in Editor's Pick, Investing Education, Market commentary.
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Time to Rein in the Leverage?
David Buckland
March 20, 2018
In a recent interview, Warren Buffett shared the wisdom from Berkshire Hathaway Vice Chairman, Charlie Munger. “My partner Charlie says there is only three ways a smart person can go broke: liquor, ladies and leverage”, he said. “Now the truth is – the first two he just added because they started with L – its leverage”. continue…
by David Buckland Posted in Investing Education.
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How we use discount rates to value business opportunities
Andreas Lundberg
March 2, 2018
All of a sudden, the discounted cash flow (DCF) method is in the news. If you’re not a financial analyst, DCF probably doesn’t mean much to you. But recent comments by Australia’s Grattan Institute prompted me to explain how we go about valuing companies at Montgomery. continue…
by Andreas Lundberg Posted in Investing Education.
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What does outstanding stock picking look like?
Tim Kelley
February 22, 2018
Many readers will have some familiarity with the sorts of returns a successful stock-picker might aim to produce. Often, a fund will have an explicit target of beating the market by an amount of, say, 5 per cent per annum over rolling 5-year periods. While it doesn’t sound dramatic, this sort of extra return can compound into a very dramatic difference to investor wealth over long periods of time, and so it is very valuable. continue…
by Tim Kelley Posted in Investing Education.
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A Biased map
Lisa Fedorenko
February 15, 2018
“Only when you combine sound intellect with emotional discipline do you get rational behaviour” Warren Buffet. It is in the pursuit of such rational decisions that outside of bottom up company analysis, I spend a lot of time exploring and understanding cognitive biases. continue…
by Lisa Fedorenko Posted in Investing Education.
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Make market corrections your ally
Roger Montgomery
February 12, 2018
Recent experience excepted, corrections are typically more frequent and regular than many would prefer, so investing should not occur without acceptance of this. That said, it’s important to prepare, first by making the right investments, and secondly by adopting the right temperament. continue…
by Roger Montgomery Posted in Investing Education.
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Taking stock of risk
Scott Phillips
February 7, 2018
When markets take a tumble like we have seen across the equity world over the last few days, it’s usually the time investors reassess their view on risk! Booms, busts, stress and joy are driven by emotions and hence many investors have outsourced all or part of their investments to advisers or fund managers who are very risk aware and hopefully have risk at the forefront of their minds. continue…
by Scott Phillips Posted in Insightful Insights, Investing Education.
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WHAT DRIVES INVESTMENT PERFORMANCE?
Tim Kelley
February 2, 2018
We recently undertook an analysis to try to better understand the structure and behaviour of the equity market, with a view to identifying cause and effect relationships that drive investment performance. While the work is ongoing, some interesting early findings are emerging.
continue…by Tim Kelley Posted in Investing Education.
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Passive funds will feel the most pain when markets turn down
Roger Montgomery
December 21, 2017
When markets are rising – as they are right now – it can make sense to passively invest in index funds. But when a downturn inevitably comes, passive funds will be hit the hardest. We’re not the only commentator ringing the alarm bell. Warnings against passive strategies have been mounting throughout the year.
continue…by Roger Montgomery Posted in Investing Education.
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