How are the returns on your equity?
In this article, Roger explains the importance of the return on equity ratio that is essential for success in the stock market. Read here.
Roger Montgomery is the Founder and Chairman of Montgomery Investment Management. Roger has over three decades of experience in funds management and related activities, including equities analysis, equity and derivatives strategy, trading and stockbroking. Prior to establishing Montgomery, Roger held positions at Ord Minnett Jardine Fleming, BT (Australia) Limited and Merrill Lynch.
This post was contributed by a representative of Montgomery Investment Management Pty Limited (AFSL No. 354564). The principal purpose of this post is to provide factual information and not provide financial product advice. Additionally, the information provided is not intended to provide any recommendation or opinion about any financial product. Any commentary and statements of opinion however may contain general advice only that is prepared without taking into account your personal objectives, financial circumstances or needs. Because of this, before acting on any of the information provided, you should always consider its appropriateness in light of your personal objectives, financial circumstances and needs and should consider seeking independent advice from a financial advisor if necessary before making any decisions. This post specifically excludes personal advice.
Benjamin
:
Ok thanks. I’ll read over those pages
benjamin
:
Hi Roger,
thanks for all your helpful insights. Just wanting to know if there’s ever a trade off for you in terms of ROE and discount to intrinsic value? EG; SGH according to skaffold has average ROE but is trading at a discount of nearly 60%. would you make an exception in terms of investing in a business with lower ROE if such a margin of safety were available?
Thanks
Ben
Roger Montgomery
:
A margin of safety must exist on many fronts, not just the price. Have a read of pages 226-228 of Value.able. It answers the question perfectly. You can purchase it here: https://shop.rogermontgomery.com/cart.php