Earning or Yearning?
The S&P/ASX 100 (XTO) is a stock market index capturing Australia’s top 100 companies by market capitalisation. It accounts for 63 per cent (at April 2016) of the Australian equity market, however it might surprise investors to learn that for 10 years to 8 June 2016, the S&P/ASX 100 has returned just 1.1 per cent per annum. Why has a portfolio of so called “blue chips” delivered investors such poor returns? In this paper we review the ten largest companies listed on the ASX.
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.
Andrew Mckenzie
:
Hey Roger,
I remember a small company you guys used to mention a fair bit was Burson Group. Is that one that you still like or own?
regards,
Andrew
Roger Montgomery
:
We still own it and discussed it when we thought it was a bargain. Having more than doubled in two years, it is not the mouth-watering bargain it once was.