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Bullet-proofing your equity income portfolio

Bullet-proofing your equity income portfolio

JASON TEH | It’s obvious. Retirees need income. With cash and fixed interest offering low yields, equities are a good place to look for income. On the surface, it may seem easy creating an income portfolio from shares – just select stocks from a list of high dividend yielders. However, setting up an income portfolio […]

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11, February 2019
Australian equities | Australian shares
One of the most dangerous things an investor can do

One of the most dangerous things an investor can do

JASON TEH | The market corrections in February and October should be a warning to investors that the stock market is highly cyclical. It was inevitable that ‘growth’ stocks, which pushed the market to new highs for many months eventually led the collapse. Investors who paid heed to Howard Marks’ famous quote on cycles would […]

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26, November 2018
Australian equities | Australian shares
Coles vs Woolworths: Comparing trolleys

Coles vs Woolworths: Comparing trolleys

DANIEL MUELLER | In a matter of weeks, Wesfarmers’ demerger of Coles will be complete. Coles will be listed as a stand-alone business for the first time in 11 years. You may think that both Coles and Woolworths have similar risks given that they operate in the same industry. However, a deep dive into the […]

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09, November 2018
Australian equities | Australian shares
Danger flags are waving

Danger flags are waving

JASON TEH | There are moments in life where unnecessary risk is taken despite the warnings signs. For example, swimming outside the flags at the beach when the surf looks exciting. The flags are there for a reason, it protects you from turbulent currents that could suck you out to sea. For the stock market, […]

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31, July 2018
Australian equities | Australian shares
Caltex: Shrink to grow

Caltex: Shrink to grow

SAM DYSON | Investors love companies that can deploy capital at high returns over a long period of time. However, great shareholder returns can also be achieved from companies that shrink their capital base. Take Caltex for example. It operates in an industry perceived to be dying. Vehicles are ever more fuel-efficient, and cheap battery […]

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08, June 2018
Australian equities
The bubble in quality

The bubble in quality

JASON TEH | It is hard to spot a market bubble in the making. As they inflate, market participants often rationalise their investment decisions as to why they are paying higher prices. It’s only after they burst that that bubbles become clear. The most recent bubble bursting has been Bitcoin. Now we would contend that […]

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27, April 2018
Australian equities | Australian shares
The sky is not falling, but storm clouds are brewing

The sky is not falling, but storm clouds are brewing

JASON TEH | The sky is not falling was the message in September 2017. Our message was that the overall market did not show excessive valuations, which generally is a precursor to stock market corrections. However, our market outlook dimmed due to recent ‘risk-on’ rally, where most of the year’s return was delivered in the […]

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29, January 2018
Australian equities | Australian shares
Telstra's Trump moment

Telstra's Trump moment

DANIEL MUELLER | Did Telstra just have its Trump moment? Prior to Telstra’s FY17 result, media articles abounded speculating the company was going to announce the securitisation of its recurring NBN payments. The media cited various analyst reports that a securitisation of up to $18 billion was about to create a capital management bonanza for […]

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16, November 2017
Australian equities | Australian shares
Is Woolworths regaining its mojo?

Is Woolworths regaining its mojo?

DANIEL MUELLER | Woolworths “is a wonderful organisation, with enormous upside.” This was the first thing former CEO Grant O’Brien said about Woolworths in his inaugural address to the market in November 2011, shortly following his appointment. And why not think that? Chart 1: Food, Liquor & Petrol EBIT margins   Woolworths had a fantastic […]

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16, November 2017
Australian equities | Australian shares
Capitalising on R&D

Capitalising on R&D

SAM DYSON | Looking for assets the accountants can’t see Even well-known companies can have ‘hidden assets’. There could be an undervalued property, for example, or a resilient brand or perhaps an innovative culture. Another, thanks to a somewhat misleading accounting convention, is a company’s research and development (R&D) efforts. Consider two of Australia’s most successful […]

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09, November 2017
Australian equities | Australian shares