Investing Education

Over the years, there has been some confusion about our approach to value investing. And even though a majority of my 2010 book, Value.able discussed the importance of identifying quality businesses, which included a company’s bright prospects for growth, many investors and commentators have been fixated on the value component of the philosophy. continue…

by Roger Montgomery Posted in Editor's Pick, Investing Education.

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I joined Gemma Dale on nabtrade’s Your Wealth podcast to discuss the importance of growth and where to find it, income and the dangers of chasing yield, and provides an explanation for why the outlook might be brighter than many commentators assume. I also talk about the growing asset class that is private credit so keep the Aura High Yield SME Fund and the Aura Core Income Fund in mind after seeking personal professional advice.

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by Roger Montgomery Posted in Investing Education, Podcast Channel.

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In part one of this note to young investors, I set out the reasons why I think young investors should steer clear of index funds and instead invest in high-quality, growing companies. So, the question is: how to find and invest in these companies? continue…

by Roger Montgomery Posted in Airlines, Companies, Editor's Pick, Insightful Insights, Investing Education.

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If you’re a younger investor, you’ve likely heard about – and even possibly invested in – index funds, whose promoters argue it’s easier, cheaper, and wiser to stick to investing in broad benchmarks such as the S&P/ASX100 or 200. continue…

by Roger Montgomery Posted in Investing Education.

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We’ve been writing a lot about income, and recently I updated some analysis on the importance of investing in growth stocks rather than yield stocks because, over the long run, the pursuit of growth actually produces a better yield. Let me put forward some more reasons why you’re usually better off avoiding the siren call of high-dividend paying stocks. continue…

by Roger Montgomery Posted in Editor's Pick, Investing Education.

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Cash flow is the money flowing in and out of a business. It’s what a business needs to fund day-to-day operations and investments, and protect it from financial challenges. And, as we’ve seen with all those ‘profitless prosperity’ companies, it can be the difference between success and failure. So, how do you identify a business that is generating real cash flow, and one that is not? continue…

by Roger Montgomery Posted in Editor's Pick, Investing Education.

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Most of us tend to be better at buying and holding stocks than we are at selling.  After all, buying is the fun part – it’s when optimism is kicking in.  But knowing how to sell is just as important when it comes to your returns. Because recycling capital into higher quality stocks with a lower downside risk is how you improve the quality of your portfolio. continue…

by Sean Sequeira Posted in Companies, Editor's Pick, Investing Education.

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With the demise of Silicon Valley Bank (SVB) and the effect on Credit Suisse – its share price has declined 90 per cent in five years to CHF1.70 – I thought it appropriate to return to basics and dig a bit deeper into what constitutes a “Quality” business, also known as a “Compounding Machine.” continue…

by David Buckland Posted in Investing Education.

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For all the doom and gloom being proffered by various analysts it might surprise you to learn the Australian economy is actually growing. And it grew 2.7 per cent over the last year. Sure, the rate of growth might be slowing, but we’re still growing. continue…

by Roger Montgomery Posted in Investing Education.

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The past year has seen a distinct switch in investor focus from growth to yield. The irony, of course, is that many so-called ‘dividend stocks’ can be long-term wealth killers.  And that’s why we prefer quality businesses – like CSL – which can grow both their market value, and their dividends, over time. continue…

by Roger Montgomery Posted in Companies, Editor's Pick, Investing Education.

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