Is it time to get back in?
With so many companies now trading at cut-price valuations, many of our readers are asking whether it’s time to start buying again. Over the past six weeks many companies are down. And some of them are very high quality indeed. A new reality exists, and one with the same opportunities as 1987.
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.
Steve
:
Roger, most journos, newscasters and even industry analysts struggle to explain what you have outlined so well. Excellent summary for wealth creation. Thank you
Roger Montgomery
:
Thanks Steve!
Michael
:
Good afternoon Roger,
I always value your opinion and am interested to hear where you stand on Aristocrat following the last six weeks. After being a significant holding in the fund for some time and then reducing exposure, have you seen the recent retreat to circa $20 as a good opportunity to purchase again? While casino closures will have short term impact, are you confident in the companies ability to use this as an opportunity to gain market share and revenue in online gaming?
Regards,
Michael
Roger Montgomery
:
Its competitors are highly leveraged so there could be market share gains. Also keep in mind the digital gaming businesses.
Jason *
:
Roger, I am pretty sure you meant intraday low of 4,564 but auto-correct did its own thing. :)
Mark Egan
:
I know the answers in this time of chaos. Invest with me.
Roger Montgomery
:
Ok.
dean morris
:
Hi Roger, great article as always.
Could you comment on today’s NZ decision on bank dividends and the impact on our banks? What are the chance of the four banks or some of them going under in this crisis? Not concerned about deposits but for shareholders.
If Australia follows NZ with this what happens with the money? Is it just used as working capital?
Thank you.
Roger Montgomery
:
Equity holders could be torched but that’s different to the bank going under Dean.
Max Zan
:
Hi Roger
Soon the big fish will start eating the distressed little fish. I expect lots of takeovers and mergers to occur at bargain prices and the acquirers will benefit . Wesfarmers is cashed up and on the prowl – interesting to see who they take out.
In the Bank space ,Macquarie Bank looks interesting at current prices . I’m sure they are also on the lookout for opportunities .
Opportunities like the present should not be overlooked.
Roger Montgomery
:
Agree Max. They only come around about once a decade.