Search Results for: thorn group
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Why are “blue chips” delivering such poor returns?
Roger Montgomery
September 22, 2017
Most investors have their equity portfolios heavily skewed to the largest ten companies. Is that you? Do you think yours is a “blue chip” portfolio? Or have you given up on active fund managers and believe that investing in an Australian index fund is smarter?
Continue…by Roger Montgomery Posted in Companies.
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How should you read a broker report?
Tim Kelley
September 21, 2017
Broker reports are one of the most widely-used information sources for equity investors of all stripes, and there is no doubt they can be a very useful source of background information on an industry or company. In addition, they provide financial forecasts, valuation estimates and, of course, the analyst’s overall conclusion: buy, sell or hold. Continue…
by Tim Kelley Posted in Investing Education.
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Hospital check-up
Lisa Fedorenko
September 15, 2017
The private hospital diagnosis this results season was as unpleasant as this year’s flu season. Since result day, Healthscope (ASX: HSO) has plummeted 25 per cent down to $1.68 and Ramsay Health Care (ASX: RHC) 19 per cent to $63.84. Roger Montgomery previously discussed some of the risks we had identified into the results in this June blog. Into the results we felt that both hospital operators were trading at stretched valuations and as a result reduced our positions. Following the share-price correction, we remain comfortable with our remaining holdings. Continue…
by Lisa Fedorenko Posted in Health Care.
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Prepare to lose enormous [property] wealth: UBS and Harry Triguboff
Roger Montgomery
September 13, 2017
Earlier this week, The Australian – the newspaper I write for fortnightly – updated their reporting of Australian property mogul Harry Triguboff’s view on property prices.
Separately this week, UBS reported the results of a survey of almost 1000 Australian mortgage holders who borrowed in the twelve months to August 2017. They observed; “Our 2017 survey found factually accurate mortgage applications fell to just 67 per cent. There are now ~$500 billion in ‘Liar Loans’ on the banks’ books.” A third of borrowers admitted to understating their living expenses. Continue…
by Roger Montgomery Posted in Editor's Pick, Property.
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SKY BUSINESS: SWITZER TV FEATURING Roger Montgomery
Roger Montgomery
September 11, 2017
Roger Montgomery joined Peter Switzer on Switzer TV to discuss the reporting season and how we saw some fantastic results from some of our companies including REA, Challenger, Smart Group and IDP Education. Another topic of discussion was the issues for retailing including the slowdown in residential construction activity.
by Roger Montgomery Posted in TV Appearances.
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Why investing fads can end in tears
Roger Montgomery
September 11, 2017
Back in the 1960s, a group of companies listed on the New York Stock Exchange called the Nifty Fifty grabbed the attention and dreams of a generation of savvy investors. As we know, investing in the Nifty Fifty ended badly for many of them, and showed the downside of investing fads.
Continue…by Roger Montgomery Posted in Global markets, Market commentary.
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Digital media continues to put the squeeze on ad spending
David Buckland
August 25, 2017
As traditional media users and advertising spending shift to digital platforms, it’s causing advertising budgets to shrink. This effect has been called digital deflation. And it’s causing massive headaches for traditional media, advertising and marketing businesses worldwide. Continue…
by David Buckland Posted in Media Companies.
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Why they’re pessimistic about this market
Roger Montgomery
August 23, 2017
You may be surprised to know that our largest position by far is cash. And that’s because we’re not finding value among the quality businesses we like to own. In value investing, patience can be a virtue, and we think holding cash will pay off handsomely. But, of course, not everyone will agree with us. Continue…
by Roger Montgomery Posted in Editor's Pick, Market commentary.
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Sold! REA comes through with growth
Roger Montgomery
August 17, 2017
When REA Group (ASX:REA) announced the FY17 full year results the shares fell six percent (they’ve since recovered). REA Group reported an underlying profit for the full-year FY17 of A$228.3 million, which was up about 12 percent. Most of the growth can be attributed to growth in the more expensive ‘premium’ depth ads, and much of the growth came from higher prices. Continue…
by Roger Montgomery Posted in Companies, Property.
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It’s time to be prudent as the end of the boom draws closer
Roger Montgomery
August 15, 2017
The increasing flow of money into riskier ‘investments’ is making us ever more cautious. After all, every boom must come to an end. So what does holding high levels of cash mean? In the short term, it may mean we lag some of our peers. But, longer term, we are convinced it will prove a very sound approach. Continue…
by Roger Montgomery Posted in Market commentary.
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How you can become a ‘superforecaster’
Ben MacNevin
August 14, 2017
According to the renowned US researcher, Philip Tetlock, elite forecasters (or ‘superforecasters’) have two traits in common. First, they update their forecasts more often than other forecasters. Second, they update in smaller increments. His findings have important implications for all long-term investors wanting to sharpen their forecasting skills. Continue…
by Ben MacNevin Posted in Investing Education.
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REA’s profits will keep growing even if property falls
Roger Montgomery
August 9, 2017
Conventional wisdom would suggest that, in a softening property market, any company exposed to property will suffer operationally. While that might be true for developers and builders, it might not be true for REA Group. Continue…
by Roger Montgomery Posted in Property.
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Nerve over intellect
Lisa Fedorenko
August 3, 2017
Warren Buffet was once asked whether intelligence or discipline is more important in investing. His response: “To be a great investor you don’t have to have a terrific IQ. If you’ve got 160 IQ, sell 30 points to somebody else because you won’t need it in investing. What you do need is the right temperament.” Let’s look at some ways to develop the ‘right temperament’. Continue…
by Lisa Fedorenko Posted in Investing Education.
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Why REA Group remains a stand-out business
Roger Montgomery
July 31, 2017
For some years we‘ve advocated for our investment in Australia’s dominant real estate portal, REA Group. For us, REA ticks all the boxes. It’s a well-run business with high returns on equity and an ability to raise prices in the face of excess supply – without an adverse impact on unit sales volume. Continue…
by Roger Montgomery Posted in Property.
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Which companies could disappoint the market?
Roger Montgomery
July 31, 2017
As we’re on the cusp of reporting season, it’s a good time to look at the companies and market sectors that may soon be under pressure – in particular, those that could be affected by the record levels of debt held by Australian households. Continue…
by Roger Montgomery Posted in Market commentary.
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Should Telstra securitise its NBN Co. payments?
Tim Kelley
July 27, 2017
Over the next few months – and possibly as soon as August – Telstra will make some important capital allocation decisions, including what to do with billions of dollars in payments from NBN Co. Naturally, investors are eagerly awaiting the announcements. So, what can they expect to see? Continue…
by Tim Kelley Posted in Technology & Telecommunications.
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What will be of FY2018?
Roger Montgomery
July 25, 2017
With the 2018 financial year underway, it’s worth examining the forces that could determine whether the Australian stock market repeats its circa 13% return of 2017. Continue…
by Roger Montgomery Posted in Market commentary.
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The competitive advantage of a ‘customer moat’
Scott Shuttleworth
July 21, 2017
One type of competitive advantage that we find particularly compelling is the customer moat. Businesses with a strong customer moat – like Amazon and REA Group – create value for their customers, making them highly durable investments over the long term. Continue…
by Scott Shuttleworth Posted in Investing Education.
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Why the insurance brokers have run
Lisa Fedorenko
July 11, 2017
In this week’s video insight Lisa discusses Steadfast and AUB group and their stand out performance year to date.
The Montgomery Funds own shares in Steadfast and AUB group.
by Lisa Fedorenko Posted in Editor's Pick, Video Insights.
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Why it pays to harness diverse views when forecasting
Lisa Fedorenko
July 5, 2017
“It is far better to foresee even without certainty than not to foresee at all,” wrote French mathematician, Henri Poincare. It’s a comment that’s really pertinent to us as investors. Here, I’d like to share with you some insights on how to improve your ways of ‘foreseeing’. Continue…
by Lisa Fedorenko Posted in Investing Education.
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