We’re keen to keep an eye on retail sales. You might recall we have previously explained that on the positive side, unemployment if very low, is very good for retail conditions.  On the negative side wages growth has been stubbornly flat and retailers have been unable to pass on any price rises. Continue…

by Roger Montgomery Posted in Consumer discretionary.

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Well it’s that time again – an update to our lengthy commentary on avocado brekkies and the property market. How did the Smashed Avocado index track towards the end of 2017? Continue…

by Scott Shuttleworth Posted in Property.

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by Roger Montgomery's Team Posted in Old Content.

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WPP is the world’s largest communications services group.  As such, it’s a good indicator of how digital disruption is affecting advertising budgets.  So its 2017 results, and market outlook, make interesting reading. Continue…

by David Buckland Posted in Companies.

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“I believe a management team is focused first and foremost on figuring out a way to consistently provide great value for its customers can be a durable competitive advantage”, [1] wrote John Huber of Saber Capital in a recent presentation to Google. Continue…

by Lisa Fedorenko Posted in Insightful Insights.

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The market ructions in early February were a genuine ‘shot-across-the-bows’ – a warning to investors about the longevity of easy credit, soaring asset prices and ultra-low volatility.  That’s why, with markets potentially on the verge of a big reversal, we think it’s prudent to hold more cash. Continue…

by Roger Montgomery Posted in Editor's Pick, Market commentary.

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All of a sudden, the discounted cash flow (DCF) method is in the news. If you’re not a financial analyst, DCF probably doesn’t mean much to you. But recent comments by Australia’s Grattan Institute prompted me to explain how we go about valuing companies at Montgomery. Continue…

by Andreas Lundberg Posted in Investing Education.

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Australia’s financial regulator, APRA, is looking to increase the number of mortgage categories that are to be penalised with an increase in regulatory capital by the banks. The higher capital requirements on these categories is likely to see riskier loans get more expensive. Continue…

by Stuart Jackson Posted in Financial Services.

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