How to find invest well in a volatile market
Montgomery Investment Management founder Roger Montgomery reassures stock market investors that its quite easy to value a business. Using Roger’s simple Value.able formula, investors can value any business, listed or unlisted. “If you simply take the return on equity, divide it by the required return, so the return that you think is reasonable, and multiply it by the book value, you’ve got a valuation that’s going to be pretty sensible” Roger said. Read the transcript or watch the interview at www.abc.net.au.
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.
Todd
:
Hello Roger,
In these times of volatility I am truly thankful that I have Value.able sitting on my desk and have the opportunity to read your blog and hear your insights – thankyou!
I have observed through your high waiting of cash in the Montgomery Fund that asset allocation is also very critical to investing in volatile markets.
Can you share some insights here or perhaps another book?
Thanks Todd
Andrew
:
Another very sensible collection of statements Roger. As usual i would imagine most of it will be completley ignored as ts much more exciting to turn yourself onto the ups and downs of the market. Us humans can be by nature emotional beings, some more so than others.
Interesting to see what the blogosphere makes of your comment on COH. I agree with you, but a lot of others would point to the share price now and say that your wrong. It doesn’t matter though, i would prefer everyone to be a bit pessimistic on COH for a while to come yet so that when i have the free cash to invest again i can still get them at a good price.