What are Roger Montgomery’s top 20 A1 stocks?
Roger Montgomery describes his list of A1 businesses as a ‘wishlist’. Your goal as an investor is to find great businesses and buy them when their share prices are trading at big discounts to intrinsic value. Roger’s list of A1 businesses include fund manager Platinum Asset Management, manufacturer Cochlear, vitamin manufacturer Blackmores, online list Realestate.com.au, telecommunications business M2, mining services business Mineral Resources, IT services provider DWS, Centrebet, bull bar manufacturere ARB Corporation and one of Roger’s favourites, Oroton Group. Some of Roger’s A1s are cheap and some are expensive. One business is forecast to increase in intrinsic value by over 30% each year for the next three years and another by just 3%. User Roger’s list of A1s as a guide for your own ‘wishlist’, but ensure you always seek personal professional financial advice. Watch the interview.
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.
Aaryn Nania
:
Great interviews, Roger – you’re very generous towards the public in sharing your information, as always!
Although one business that I’m surprised to have never heard you mention is Data#3 (DTL). I do realise that your published A1 lists are not exhaustive however…
From what I can gather, the (long-standing) management are candid in their reporting, conservative in their forecasting and historically have made sound capital allocation decisions. Organic growth and financials also look very strong.
Yet they haven’t won you over?
Aaryn
Aaryn Nania
:
PS: I’m not suggesting that they are cheap, I’m merely referring to the quality of the business.
Roger Montgomery
:
Hi Aaryn,
Good pick up. DTL gets an A2, just a touch expensive.
Craig
:
Hi Roger,
In the commentary above you say “One business is forecast to increase in intrinsic value by over 30% each year for the next three years and another by just 3%”.
So, in your “Are you drowning in a sea of complexity?” post, are you saying that the table column titled “Expected change in IV” is the forecast figure for each of the next three years?
Appreciate your comment Roger. Thanks as always.
Regards,
Craig.
Roger Montgomery
:
Yes Craig.
Dean
:
Hi Roger,
More an observation than anything. I have watched these particular interviews on Switzer and noted that Forge Group – FGE was not mentioned which surprised me.
I was anticipating them to be the first business you would mention particularly after their recent earnings upgrade for the first half of this financial year. My calculations tell me they are trading at a significant discount to their IV.
In saying that I still enjoyed watching these interviews and look forward to more of them in the new year.
Roger Montgomery
:
Hi Dean,
There just isn’t time to list every company and I was asked to ‘throw in some new ones’.