Investing Education
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Spotting value in an uncertain climate
Roger Montgomery
January 27, 2016
We aren’t in the business of forecasting and it has no place in our investment process which last year delivered investors in The Montgomery Fund returns of more than 19 per cent against the stock market returns of just 2.8 per cent inclusive of dividends. At the beginning of 2015 we thought there wasn’t a lot of value around and lower returns should be expected. Even though we were right about the market’s aggregate return, it didn’t prevent the generation of attractive returns for investors. continue…
by Roger Montgomery Posted in Insightful Insights, Investing Education, Market Valuation.
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Value Investing Series, Part 1&2
Roger Montgomery
January 21, 2016
If you are interested in learning about value investing, last year we recorded a podcast series with 2GB. We will share a six-part series across the blog over coming weeks.
by Roger Montgomery Posted in Insightful Insights, Investing Education.
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Any value out there at the moment?
Roger Montgomery
December 8, 2015
It seems to many that the year about to conclude has been a tough one for investors. On a macroeconomic level the US Federal Reserve’s warnings of rate rises, followed by inaction, made uncertainty a given, while China’s deepening slowdown combined with a local chase for yield, set many investors up for a painful reckoning. continue…
by Roger Montgomery Posted in Insightful Insights, Investing Education.
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Chasing dividends often overlooks growth
Roger Montgomery
December 7, 2015
We have previously written about the bubble in stocks (and inevitably property) inflated by the baby boomer’s desperate search for yield. We described the pursuit of yield as a fad. So, while we were not surprised to watch investors rushing into higher yielding banks and Telstra, we were shocked to hear of investors buying BHP for its ‘progressive’ dividend. continue…
by Roger Montgomery Posted in Investing Education, Market Valuation.
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Three things every investor must avoid
David Buckland
November 2, 2015
The path to investment success is fraught with peril. It needn’t be this way, but along the road there are many traps for the unwary, and it seems that the natural state for we humans – at least when it comes to investments – is a certain level of unwariness.
With this in mind, we’ve set out below what we see as some of the main pitfalls along the way, and some thoughts on how you may avoid them.
by David Buckland Posted in Insightful Insights, Investing Education.
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Contemplating Risk
Ben MacNevin
October 26, 2015
Investing means dealing with uncertainty, and risk, by its very nature, is unquantifiable. But while it is impossible to predict the future, it can be a very useful exercise for investors to rigorously consider a range of possible outcomes for a business, with a particular focus on the downside. continue…
by Ben MacNevin Posted in Insightful Insights, Investing Education.
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Value Creation – Part 1
Russell Muldoon
October 22, 2015
When it comes to investing, choosing the right businesses to back may seem like a daunting task. With literally thousands of opportunities presented to you daily and loads of exciting ‘stories’ that management teams are more than happy to tell you about in order to attract your capital, there’s a way you can further break down the opportunity set into more bite sized chunks. continue…
by Russell Muldoon Posted in Insightful Insights, Investing Education.
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Five Forces
Stuart Jackson
October 16, 2015
The importance of ROE (return on equity) and buying companies with bright prospects is sacrosanct here at the Insights Blog but why? ROE is an important explanatory variable for superior share price performance and so we want businesses that can sustain high rates of return. When I talk about bright prospects it is the sustainability of these high rates of return that I am referring to. Whether the bright prospects relate to a rising tide of customers, the ability to pass on rising costs, the ability to be the low cost provider or the changing competitive landscape, how these factors serve to produce a high rate of return on equity is what we care about.
by Stuart Jackson Posted in Insightful Insights, Investing Education.
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Catastrophe risk
Scott Shuttleworth
October 7, 2015
The rewards in the stock market can be vast – why else would we spend so much time on it? But the risks can often go overlooked as we dream of retiring down at the beach tomorrow. One risk we would like to highlight is catastrophe risk. continue…
by Scott Shuttleworth Posted in Insightful Insights, Investing Education.
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Don’t jump at shadows
Roger Montgomery
September 23, 2015
As most readers will know, in July 2015 we launched the Montgomery Global Fund and The Montaka Global Fund. We were rather shocked when, just a month later in August, two or three investors withdrew their investment. When surveyed, the investors who withdrew their investments cited fears about an economic slowdown in China and its potential impact on markets globally. continue…
by Roger Montgomery Posted in Insightful Insights, Investing Education.
