What do you know?
It’s the 20th anniversary of the launch of the Hubble Telescope, which provided the world with new insights into life, the universe and everything. Insights are what this blog is all about, and many of you have insights that are extraordinarily valuable and worth sharing.
Around October last year I received a tip to look at Decmil and Forge. That’s all that was said; “Roger, you should have a look at Forge and Decmil”
So I did. And the rest, as they say, is history. It turned out Forge qualified as an ‘A1’ company and Decmil was right up there too. Both were trading at large discounts to their intrinsic values. That’s two from two.
Another contributor has insights into healthcare stocks, benefiting everyone who visits this blog. And a CEO or two have provided clarity about their business models and their competitive positions.
A frequent question I am asked is: “Roger, thank you for providing these insights for free…but why do you do it?”
Well, first, I want you to see that valuing companies works better. If I can demonstrate that to you, you will have some confidence in doing it yourself, of course sticking to the steps outlined in Value.able. The second reason is that Warren Buffett described himself once as 85% Ben Graham and 15% Phil Fisher. Fisher is the author of Common Stocks and Uncommon Profits and liked “scuttlebutt “– insights from customers, employees and competitors. I would like to see you’re your insights published here.
If you are reading this post, let me assure you are not alone. – value investing, it seems, is much more popular in Australia than I anticipated. So instead of shooting your question or insight to me privately in an email, post it here.
If you don’t want me to publish your thought, just say so and I will refrain. When you write something, it doesn’t automatically pop up. It sits in my inbox awaiting my approval. I have to click PUBLISH before anyone will see it. If you ask me not to, I won’t.
I have been positively amazed at the insights, views, opinions and questions I have received via email and most are worthy of posting here. So don’t hold back. Click LEAVE A COMMENT at the bottom of this post.
This blog is seen by CEO’s, MD’s, CFO’s and the PR people representing some of Australia’s largest public companies, so go ahead and share your thoughts. Please refrain from defamatory or judgemental language. Remember that every time you buy a share, you are purchasing from someone who quite likely disagrees with you, so don’t worry about a difference of opinion or even the risk of being wrong. As Francis Bacon said: “truth emerges more readily from error than from confusion”. We learn more from knowing we were wrong than from never knowing.
Let me kick things off by asking a few questions. Feel free to answer any or all:
- What industry do you work in?
- Who do you regard as the best company in that industry?
- What do you think makes them the best?
- Could anyone eventually knock them off the perch? Who do you think is the most likely to?
- What other industry(ies) do you like? Why?
And use any of these to get our conversation going:
- Do you receive tips?
- How do you test them?
- Do falling shares prices make you freeze?
- Does your share portfolio have so many shares that it looks more like a museum? How did that happen?
- How do you track your portfolio’s performance?
- How do you go about analysing a company?
- What’s has been your process for investing?
- What stock do you like the most? Why?
I hope you will take up my invitation to share your thoughts here and eagerly await commencing our dialogue. Start by clicking the LEAVE A COMMENT link just to the lower right of this post.
Posted by Roger Montgomery, 27 April 2010.