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Peace and Joy to all this Christmas.

Peace and Joy to all this Christmas.

Thank you for your support in 2011 and for all of your wonderful contributions to the knowledge bank.

I am delighted to finish the year on a positive note with Cochlear (see post below) announcing it has identified the source of the malfunction of its Nucleas CI500 cochlear implant.  This will also be positive news for many Cochlear implant recipients who put their quality of life in the company’s hands.

I have also published a recent column on the possibility of a convergence of Eurozone default, economic slowdown, a decline in consensus earnings estimates and a throwing in of the towel by investors who are fed up with low returns and heightened volatility (see below).

Hopefully that will stimulate some serious contemplation over the Christmas break.

Next year I am hoping to reconfigure the Insights Blog.  My idea is to create  and share the publishing role with any number of you who wish to write 300-600 word columns of an investment topic of your choice.  I will remain editor and I am looking for twenty six (26) Graduates who can contribute two columns each in 2012.  Of course if you wish to contribute more, be my guest.

We also intend to restructure the blog to allow easier searching and viewing of multiple threads.  Stay tuned and if you would like to contribute send an email to me at roger@rogermontgomery.com with “CONTRIBUTOR” in the subject heading.

I am delighted that, in 2011, so many investors have found Value.able and Skaffold so useful. Many Graduates have said the Skaffold approach to investing is at once easy to understand and rational. And according to Daman’s feedback, Value.able!

“On Friday the 16th Dec, Bendigo announced a takeover of the Australian arm of a Greek bank at purchase price reflecting a return on equity around the same as a 12 month term deposit with Ubank. Alongside this was a $96M or so write down to its Margin Lending Business (due to the poor economic conditions). Today, its appears upon recommencing trading and Mr Market being nervous in general  the share price of BEN has fallen over 6%.

Good news is that I sold my holdings in BEN  on the 7th of December. Thanks to your teachings on the importance of ROE I was able to recognise that this business does not have superior performance characteristics, among several other factors. As a result I secured a somewhat reasonable profit of 14% on my holdings and a 2,740% ROB (return on [your] book).”

If you have not already secured your copy of Value.able or become a member of Skaffold and want to kick 2012 off the Skaffold way, go to www.Skaffold.com.

To the Value.able Graduates and Skaffold members (Skaffolders?), thank you for taking the time to share with me just how much you have been impacted by each. I am delighted to hear your amazing stories of investing success and I am pleased we can look forward to 2012 with enthusiasm.

I will return in late January. Our team will continue to publish your comments here at the blog, post new videos to my YouTube channel, reply to your emails and take your calls.

We leave 2011 with one of the world’s most successful billionaire hedge fund managers telling his clients; “Trust has been lost, confidence in the system is being lost, and the ultimate consequence of this break down – sovereign defaults – are imminent.”

In the meantime may your Christmas be filled with the love of family and friends.  I look forward to corresponding with you again beginning February 2012.  I will always be enthralled by Caravaggio’s work. The Adoration was painted in 1609.

Posted by Roger Montgomery, Value.able author and Fund Manager, 20 December 2011.


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.

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  1. Merry Christmas to Roger & your families, the team & to everyone here.

    Thank you Roger for all your insights this year. Thanks to you I have cleaned up my portfolio and comfortably sitting with some spare cash to deploy into quality companies in 2012!

    To all the contributors to this blog thanks for a very insightful 2011!

    Have a good one everybody!

  2. Having escaped early for Christmas I have been spending a couple of idle hours catching up with news. A belated happy Christmas to everyone and health, wealth and happiness in the New Year. A particular wish to my mates in Christchurch that the earth stops exploding and they can get some normality back in their lives. Finally, a huge thank you to you, Roger, and your team for all the hard work and insightful comments. You have proved that you can teach an old dog new tricks!

    All the very best to everyone.

  3. Merry Christmas to Roger, the team & to everyone here. I hope you all have a fantastic time with your friends & family. I look forward to reading more insights from everybody in the new year

  4. Thanks for the huge effort Roger. You dedicate an amazing amount of time to all of us. There is nowhere else online where you can get such a wealth of quality information and stimulating discussion. To all the contributors to this blog thanks for a very enjoyable 2011.

    You commented a while ago the audience to a value investing blog would diminish once things started to return to normal. It does not seem likely to change for a little while yet.

  5. A merry Christmas and happy and prosperous New Year to all from a not-very-sunny Finland. Not very snowy either I’m afraid. Thanks for the great insights to Roger and all of you.

  6. Wishing everyone here a safe and enjoyable holiday period. Thanks to the many many contributors who have provided insightful posts to this blog over the year, and especially to those who have helped us think outside the usual frame of reference – I personally find these views both refreshing and beneficial.

    Cheers and beers,
    Ray H.

  7. Thanks Roger,team and room for the past eighteen months has been a great learning curve and am sure the future will be much the same. Merry Xmas and a happy new year to all.

  8. Merry Christmas to you Roger, your staff and to the Skaffold team and also importantly to all the wonderful contributors to this blog.
    I’ve been a little quiet on the posting front of late but hopefully will be able to more effort in in 2012.
    2012 promises to be one of the most interesting investments years ever. I’m sure the road will be bumpy, I can’t tell you if it will be all downhill and I doubt anyone else really can.
    It will however turn up opportunities and will certainly be the source of much fertile discussion.
    We have the tools and the forum for both.
    May you all have a wonderful and prosperous new year.

  9. Hi Roger & All

    Wishing you all, and your families, a Merry Christmas, a happy and safe New year.

    All the best and thanks for all nice suggestions and articles.

    ned and family.

  10. To Roger and team,

    After discovering your book Value.able earlier this year, it has help put me on the right path of investing. Always having the goal to be a ‘buffett-like’ investor and attempting to put this into practice, I was still asking the question of how can I invest with the right tools and not feel my way around in the dark. After years of searching for clear answers, one particular day sifting through the net as usual, I came across this ‘MQR’s’ and the name Montgomery, all about value investing on a forum and decided to investigate further. I was to discover your blog and book and I had felt that I found the investing oasis, someone in the industry and a community of people who finally had the right mind set and it was all in my own backyard!

    Value.able and Skaffold has brought it all together for me and has been like a light unto my path within the investing world. I owe a huge debt of gratitude to you, your team and to the value.able community. I wish you a Merry Christmas and very happy and safe new year.

    Looking forward to a whats in stall for 2012.


  11. “Trust has been lost, confidence in the system is being lost, and the ultimate consequence of this break down – sovereign defaults – are imminent.”

    A fan of Kyle Bass?

    Merry X’mas.

  12. Wishing you a Peaceful and Enjoyable Christmas, and also a very successful 2012, to you Roger, your team, and to all the contributors and blog followers also. I’ve just got back from four days away, and I’m already feeling more peaceful. However, with two young children (5 & 8), my peace will undoubtedly be short lived. May you all be blessed with wisdom, and good fortune (they often go hand in hand).

    John C.

  13. Hi Roger & Everyone.

    Wishing you all and your families a Merry Christmas, a happy and safe New year.

    I deeply appreciate the articles you have written Roger and also to all who have contributed to the site.

    The quality is fantastic… I never stop learning more on Valuable Investing.

    Ron F

    • You too Ash, hopefully the christmas and new year period is a bit more enjoyable this year than it was for you guys in Queensland last year.

      • Hi Andrew.

        You have posted many interesting helpful blogs this year….I am grateful for them.

        Have a great Christmas
        Regards Ron

    • Hi Ash
      Just echoing Andrew’s thoughts, hoping it will be a better period in Q.L.D. for you all.

      Merry Christmas Ash,
      And thanks mate for you blogs….always look foward to you posting blogs.


  14. To Roger, his team and to all contributors:

    This blog is simply a wonderful ongoing seminar with the shared views of so many talented and generous-spirited people.

    We would like to wish you all a warm, happy Christmas and a New Year insulated from all that may try to trouble you God bless us, one and all,

    David & Anna

  15. Roger, Skaffold and Valu.able staff and others,

    I wish you all a merry xmas and happy new year. I look forward to wonderful conversations and learning more in 2012.


  16. Thank you Roger and bloggers for all your help this year. I’m pleased to report that Christchurch is showing signs of life after a horrendous year and I think that early next year we will see the biggest construction project NZ has ever seen finally get underway. And the way we humans can rally round to help each other and be nice to each other during times of major disaster had been a learning for us all I think.
    Merry Christmas to all.

  17. HI Roger

    Your insights and valu-able principles have been proven over and over again in the 2011 market.

    Big thankyou



  18. Thank you, Roger for a great year on this blog. I’ve learnt heaps this year and look forward to taking them into next year.

    I hope you and your family have a Happy Christmas and New Year.

    Many thanks to the other contributors on this blog as well.

  19. Thank you Roger for all your insights this year. And a happy birthday to you as well as a Merry Xmas to you and your family

    Best wishes

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