One of today’s big debates is whether share markets are falling out of love with so-called ‘growth’ stocks and falling back in love with ‘value’ stocks. It can be worth paying attention to broad shifts in sentiment, but I think there is little utility in trying to divide stocks into these two arbitrary categories. Instead, it is better to simply focus on investing at rational prices in extraordinary businesses that have bright prospects.
That’s certainly what we do each day at Montgomery. In this white paper, I discuss how the meaning of the word ‘value’ has evolved since the days of Benjamin Graham and the importance of assessing the long-term potential of any company you invest in.
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.
