What a year it has been!

What a year it has been!

The Christmas break provides a great time to relax and take stock, so if you’re looking for things to explore over the summer, here is a collection of resources and tools I found particularly interesting in 2015, for both personal and investing purposes.

Key Investment Coverage for 2015

Investigative journalism at 4Corners was exceptional in 2015. The ABC’s coverage of excess expenditure in Australia’s health care system was particularly timely, coinciding with the pending floats of Integral Diagnostics and i-Med, and only months before the Australian Government announced initiatives to reduce pathology and diagnostic imaging costs.

Key Investment Theme for 2016

A rout in commodity markets defined 2015. Basic economics dictates that prices fall when supply significantly exceeds demand. Due to the long lead time of resource projects, producers of iron ore and oil were ramping up scale at a time when demand was falling. Unfortunately, history is likely to repeat in 2016, but this time in the Liquefied Natural Gas (LNG) market. The Australian economy is particularly vulnerable after long-term supply contracts were locked in when oil prices were significantly higher. Local producers like Santos and Origin are now doing all they can to sustain the projects. But does Australia still have sufficient supply for our local needs?

Favourite Investment Book of 2015

For those keen for a little holiday reading with an investment tilt, get yourself a copy of Howard Marks, The Most Important Thing Illuminated. Pay particular attention to his thoughts on risk, as too often investors associate risk with share price volatility, when it is the permanent loss of capital which is more concerning.

Book I’m Reading Now

My Christmas break will feature Elon Musk: How the Billionaire CEO of SpaceX and Tesla is shaping our Future. The book shines a light on how the billionaire is disrupting the rocket, energy and transportation markets, and illustrates how rapidly niche technology can apply to mass markets. If you thought a lot changed in 2015, it may pale to how society will change in the coming years.

Favourite Book of the Year

Moonwalking with Einstein is the account of a journalist’s attempt to win the US Memory Championship. The art of memory is being lost with digital innovation, yet it is hugely important for investing. The more you remember, the more connections are made across disciplines and the more insights gleaned. It’s a very easy and enjoyable read, woven with practical techniques which can assist with your long-term investing, or simply remembering names.

Life Hack

If after reading Moonwalking with Einstein you still feel lacking in mental prowess, there is always Evernote, the external brain. Evernote is an incredibly powerful tool that can record data from websites, to handwriting, to business cards. Evernote is widely used at Montgomery to build investment theses and collect interesting insights, though it is especially helpful for everyday life too!

Ben MacNevin is an Analyst with Montgomery Investment Management. To invest with Montgomery domestically and globally, find out more.