December 19, 2022
Without a doubt, 2022 has been a tough year for equity investors. As I write, the S&P500 is down around 16.5 per cent, and the ASX200 is down around 5.5 per cent. But don’t despair – 2023 could see a return to sharemarket gains. Because history suggests that, after a negative year, the odds improve of a better subsequent year. Continue…
by Roger Montgomery Posted in Editor's Pick, Market commentary.
November 17, 2022
Both Australian Eagle and Montgomery have had a position in Macquarie Group (ASX:MQG) for some time. The positive view on the company would seem obvious given the heavy emphasis on first identifying quality businesses in both Australian Eagle’s and Montgomery’s investment process. Continue…
by Sean Sequeira Posted in Companies, Editor's Pick, Financial Services, Stocks We Like.
December 16, 2022
When investors, like Montgomery, and our partners, Australian Eagle, talk about quality Australian companies – those with wide and deep economic moats or competitive advantages, relatively low debt, high returns on equity and growing profits – Australian biotech CSL Limited (ASX:CSL) invariably appears near the top of the list. Even global quality-based investors such as Polen Capital count CSL among their holdings. Continue…
by Roger Montgomery Posted in Companies, Editor's Pick, Stocks We Like.
November 29, 2022
Warren Buffett is no fan of airlines as an investment. He once wrote that “if a far-sighted capitalist had been present at Kitty Hawk, he would have done his successors a huge favor by shooting Orville down.” And I doubt he would change his mind when it comes to investing in Qantas (ASX:QAN). Although on face value the Aussie carrier looks to be going gangbusters, the numbers tell a slightly different story. Continue…
by Roger Montgomery Posted in Airlines, Companies, Editor's Pick.
December 15, 2022
In two recent blogs, we outlined the views of Goldman Sachs strategists on the Australian and U.S. economic outlook, and the implications for investors. In this blog, we turn to the views of Macquarie Bank. Their forecasts for the ASX100 are particularly noteworthy. Continue…
by Roger Montgomery Posted in Global markets, Market commentary.
November 17, 2022
Quality stocks have been shown in studies to have robust historical performances.1 This analysis takes a deeper look into the Quality factor’s performance by breaking out its history into the four stages of the business cycle: Early, Mid, Late, and Recession. Continue…
by Polen Capital Posted in Polen Capital, Whitepapers.
December 9, 2022
Elders (ASX:ELD) has been a leading Australian agribusiness since 1839. In that time, it’s gone through a number of ups and downs. But under CEO, Mark Allison, it looks to have found its groove – as reflected in the most recent results. Despite the CEO’s impending departure, we think the Elders’ business model will continue to reward investors. Continue…
by Sean Sequeira Posted in Companies, Stocks We Like.
November 8, 2022
With U.S. and Australian equities having fallen for almost a year, many investors are starting to wonder if this bear market is coming to an end. After all, the average length of a bear market is 9.5 months, according to Investopedia. So, we’re getting close, right? Apparently not, say the analysts at Bridgewater Associates, the giant hedge fund started by Ray Dalio. Continue…
by Roger Montgomery Posted in Editor's Pick, Global markets, Market commentary.
November 25, 2022
At Australian Eagle, the external environment is not something we can control but it is something we do pay attention to. It plays a part in our investment thesis on stocks and will always be an important consideration in terms of our assessment of the quality of a company. However, the investment team tends to focus more on the inherent fundamentals of stocks especially those involving factors under management’s control. Continue…
by Sean Sequeira Posted in Companies, Financial Services, Stocks We Like.
December 2, 2022
Investors looking for investment opportunities providing monthly cash income, may want to consider the Aura High Yield SME Fund or the Aura Core Income Fund. This is particularly suitable for investors who wish to source monthly income with lower volatility of returns. Continue…
by David Buckland Posted in Aura Group, Editor's Pick.
As investors, we can’t drive the car with our eyes on the rear-view mirror, even in the current murky conditions. So where should you look at investing in 2023? watch here