May 6, 2019
A “red herring” is known as something that distracts from a more important area of focus. There are numerous different attributions to the etymology of this saying. From 17thcentury fox hunters deceiving dogs with herring; to 19thcentury bandits using herring to throw bloodhounds off their scent; to early New England settlers leaving bits of red herring along their trail to confuse the wolves that were following. In equities today, perhaps “income yield” is the red herring – throwing investors off the scent of “total returns”. Continue…
by Andrew Macken Posted in Editor's Pick, Investing Education.
March 13, 2019
In a recent report by BIS Research*, the autonomous vehicle market was estimated at 6.6 million units in 2017 and is anticipated to reach 67.5 million units by 2028. This new technology will have a disruptive impact on jobs, not to mention firms linked to the auto industry, like Sydney Airport (think car parking revenues), Cabcharge, Transurban, Automotive Holdings, AP Eagers and Carsales, Bapcor, Super Retail Group and many others. Continue…
by Roger Montgomery Posted in Technology & Telecommunications.
February 26, 2019
Vesna Poljak published an article in the Australian Financial Review which discusses our Kraft Heinz short thesis. We believe changing consumer tastes and unrealistic market expectations have created a golden opportunity to go against a large group of stocks. Read here. Continue…
by Andrew Macken Posted in On the Internet.
March 21, 2019
Electric vehicle sales are finally accelerating, and our global funds are well positioned to take a ride in the fast lane. According to Visual Capitalist it took five years to sell the first million electric vehicles (EVs), and in 2018 it took just six months. Continue…
by Christopher Demasi Posted in Editor's Pick, Technology & Telecommunications.
April 18, 2019
A very successful investor I know studies the financial pages of the newspaper with a focus on stocks and sectors that are making 52-week lows. His argument is that if he can find one “diamond” every few years, it more than accounts for the disappointments. And often by a factor! Continue…
by David Buckland Posted in Companies, Investing Education.
March 28, 2019
On Tuesday, market watchers in Australia were collectively scratching their heads in surprise to the Wesfarmers bid for Lynas Corporation (ASX:LYC). It is well known that Wesfarmers is looking to invest capital having spun off Coles last year, but if you had asked all the fund managers and analysts in Australia to rank their potential targets, Lynas would be very unlikely to appear high on anyone’s list. Continue…
by Andreas Lundberg Posted in Companies.
March 6, 2019
In recent years, state budgets have benefited from rising revenues, particularly from stamp duty. But now that revenue stream is being squeezed, particularly in New South Wales and Victoria. This decline in revenue could be a real issue for businesses that rely on state infrastructure spending. Continue…
by Andreas Lundberg Posted in Market commentary.
April 29, 2019
Would you invest in a business that is alleged to have a “toxic” and “discriminatory” culture? What about a business that is alleged to have been investigated for a software tool allegedly designed to evade and deceive authorities? Would you invest in a business that potentially had equally deep, or deeper, pocketed rivals in almost every one of its business divisions? Continue…
by Roger Montgomery Posted in Companies, Editor's Pick.
April 10, 2019
There’s been a lot of talk of inverted yield curves in the US and whether they portend a recession or a stock market crash. But, I wonder whether we need to watch the yield curve as much as exuberance in stocks themselves? Continue…
by Roger Montgomery Posted in Global markets, Market commentary.
March 8, 2019
One of the more profound changes to the practice of investment management in recent years has been the improvement in the availability of information; a change driven by both regulation and technology. Continue…
by Tim Kelley Posted in Companies, Investing Education.
A conversation with one of the owners of the largest residential builders has revealed that the slowdown in construction activity has indeed commenced. read here