MONTGOMERY WHITEBOARD SERIES – RETURN ON EQUITY 2/10/2012
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.
joe marzella
:
hi Roger.have bought your book value.able. also purchase it thru i tunes. but dont own any apple products . do you sell your book in a standard pdf format so i can read it on my standard pc pdf reader. if so where .
many thanks . great book great insight.
Roger Montgomery
:
Joe. It will soon be released in android and kindle formats.
William Winvest
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Hi Roger!
I found out that it is very meaningful about your critical argument on Modern Financial Portfolio. I was using it in my previous investments. However, I really want to allocate efficiently my portfolio. Would you please give me an advice on Asset Allocation for my portfolio or recommend to me some valuable books/materials where I can absorb those concepts? Thank you very much, Roger!
zoran arnautovic
:
Hey Roger
Is it true that someone was selling fake Facebook shares to unsuspecting retirees?
Report also says that these buyers lost less money per share than those who bought real Facebook stock.
Cheers
James
:
Book value per share and earnings per share are both rising in the example. Why do we then attribute the share price rise to ROE?
Roger Montgomery
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Book value and EPS both rising at same rate as ROE because of ROE. Try it with some different ROE numbers and payout ratios or just read Value.able.
Andrew Legget
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Hi Roger,
The Return on Equity figure is a very valuable one and very flexible as well as it can tell you so much when you look at it from different angles.
I would say my three favourite measures to look at when it comes to a healthy company are high ROE, low or negative net gearing and high interest cover. This usually does a good job at filtering.
I am really enjoying the whiteboard series Roger, thank you for spending your time and effort in helping us learn about investing from a seasoned pro.
This may sound a bit over the top but I have to at least in part thank you for helping me increase my financial IQ which appers to be coming along well as my uni mid semester exam for a corporate finance topic (basically coveing share and bond valuation, NPV etc) i got 24/25. These type of results have become a bit more regular since my first reading of value.able.
Roger Montgomery
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That is great news Andrew. Have long wanted to do more work with the Uni and have recently received the opportunity.
Andrew Legget
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COngrats yourself Roger, i woudl imagine whatever uni and its students you have alligned yourself with will find your input and insights very valueable.