TRENT CRAWLEY | There’s no better feeling than receiving a cheque from the tax man. But with Labor likely to win the next federal election, fewer cheques will be posted by the ATO. Will companies sitting on large franking balances rush out and try to beat the impending changes to the imputation system? Companies can […]
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 […]
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 […]
JASON TEH | We all know the story of Cinderella. Transformed into a glamorous princess, she was the belle at the ball. However, the celebration abruptly stopped at midnight, when her gown turned back into rags and her coach turned into a rotten pumpkin. Growth stocks are sometimes like Cinderella, glamourous companies that can have […]
JASON TEH | What a difference a year makes. This time last year, the stock market was cheering the global synchronised growth story. Now, it is downbeat, fixated on tariff wars that could derail global growth, especially China. In our view, the tariff war is a side show to what is happening in China. The […]
LIVEWIRE | JASON TEH While the Australian share market contains numerous companies that pass the first three filters, finding a stock with a sensible price tag has become increasingly challenging. However, Amcor passes all four of Buffet’s filters: Understandable business Amcor is relatively straightforward business, supplying packaging and containers globally for defensive end markets such […]
LIVEWIRE | DANIEL MUELLER In each of the previous 5 years, there have been several obvious candidates from which to ‘award’ the yield trap of the year. 2018 was harder. One could easily pick on AMP. But a combination of a lofty starting share price and lack of asset sales, due to management overhaul and […]
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, […]
JASON TEH | “You can hold a rock concert, and that’s okay. And you can hold a ballet, and that’s okay. Just don’t hold a rock concert and advertise it as ballet.” Warren Buffet. Yield traps are akin to a retiree couple thinking they’re attending ‘Swan Lake’ only to see Venom perform ‘Welcome to Hell’ […]
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 […]
