ValueLine: Transpacific
Millions of tonnes of waste are created every year. Surely that’s an opportunity? Read Roger’s article at www.eurekareport.com.au.
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.
Lloyd Taylor
:
Roger,
Looking around, I think your assumption that the average Australian weighs in at 70 kilograms might be a bit light on, but the point on waste generation by the average Australian is well made and gives rise to a few thoughts.
I suggest that the the solution is not simply in disposal costing and approach. Rather, it would be better to front end load the supply chain with a requirement for greater efficiency and environmental friendliness in packaging, accompanied by greater emphasis and education on efficient consumption, plus far stronger regulatory oversight regime for waste disposal at all levels in the community.
Unfortunately, the emphasis on climate change, as the almost exclusive environmental issue of the present, has served to divert community attention from the more pressing environmental challenges we face in this country. Issues which can be addressed comprehensively by action at the individual, local and country level with no need for international agreements and action to effect a solution.
Of course, the associated near exclusive emphasis on so called “carbon pollution” is convenient for politicians (and many in business) because it is more politically expedient and easy (and business model friendly) than having to deal with some of the more substantive environmental issues, such as waste reduction and management. To put it bluntly an overweight (pun intended) focus “carbon pollution” is a convenient diversion for individuals and politicians, rather than dealing with that which we can readily do to improve the environment for generations to come.
Transpacific’s problem is not in the fact that people will not pay more for waste disposal. Rather, the barriers to entry in the waste disposal business are almost non-existent, and the environmentally damaging alternatives available to individuals and business abound, given the paucity of regulatory oversight and the lack of political will to do anything about the waste issue, unless it has a CO2 overlay.
Regards
Lloyd
Roger Montgomery
:
Hi Lloyd,
There are of course some barriers – size/scale being one of them, historical track record being another. The point I alluded to in the article is that we are indeed facing a very local problem that no-one seems will to address, hence an unwillingness to pay.
Luke
:
Hi Roger,
There seems to be some inconsistency in your Valueline table. For example, CBA has a value of 51.19 and a price of 51.71. The thing is, the margin of safety is 12.4% but it should be -1%.
Cheers,
Luke
Roger Montgomery
:
Thanks Luke,
I will have a look.