The pick of ‘industry roll-up’ companies
Picture this: an entrepreneur of a small company raises $20 million and lists it on ASX. Management uses that capital to buy other privately owned companies in the same industry. The entrepreneur knows the industry is full of tiny operators or, in business-speak, is “highly fragmented”. Several owners are eager to sell and the entrepreneurial venture,…
Protecting your portfolio from major downturns
It is nine years after the global financial crisis but we still have ultra-low interest rates. This is great if you are a borrower, but not if you are a saver. If you avoid risk today and invest in interest rate products (cash, term deposits etc), your returns will almost certainly be very low and…
Garbage a growing business as city populations take off
Rampant population growth in Sydney and Melbourne, and its impact on accommodation, infrastructure and liveability, attracts almost daily headlines. Less considered is the waste that millions of extra residents will create and what that means for garbage disposal. Waste is big business in Australia. Business forecaster IBISWorld estimates the solid waste-collection services industry has annual…
What’s the fuss about interest only loans and offset accounts?
Interest only loans for residential property purchase, for both owner occupiers and investors, have been in the news lately. With no requirement to repay principal, the concern for financial regulators is that many borrowers don’t have the incentive to build sufficient equity “buffers” to cope with any falls in housing values and/or rising interest rates.The…
Protecting your portfolio from major downturns
By Michael O’Dea, Head of Multi Asset, Perpetual It is nine years after the global financial crisis but we still have ultra-low interest rates. This is great if you are a borrower, but not if you are a saver. If you avoid risk today and invest in interest rate products (cash, term deposits etc), your…
Why global equities?
By Magellan Group Australians have heavily tied their financial fates to Australian equities. Australian stocks have certainly proved to be good investments over the past two decades. The industrialisation of China boosted commodity prices, which has helped Australia’s economy expand continuously since the early 1990s. Our banks and mining stocks, in particular, thrived. But is…
7 Principles For Successful Long-Term Investing
1 – Plan On Living A Long Time Thanks to advances in medicine and healthier lifestyles, people are having longer lives. This chart shows the probability of reaching the ages of 80 or 90 for some who are aged 65 today. A 65 year-old couple may be surprised to learn that there is a 51%…
Top Stocks in the Infant Formula Sector
Some newcomers to investing heed the advice from experts to invest in mega-trends, forgetting to read the “fine print.” Their assumption may be that all stocks in a sector with strong tail winds generated by a mega-trend will benefit equally. A corollary to that assumption is the belief that latching on to the current “market…
Being a successful investor
In 2008, John Bogle, founder of The Vanguard Group, said in a speech to a conference of Financial Planners: “Investing to me, is all about the long-term ownership of businesses, focussed on the gradual accretion in intrinsic value that is derived from the ability of our corporations to produce the goods and services that our…
The economics of ridiculously expensive art
What would possess someone to buy Leonardo da Vinci’s Salvator Mundi for US$450 million? You might think it’s an investment – after all it was previously sold for just US$10,000 in 2005. From an economic point of view, art can be an investment. Although the research shows art investing has mixed results. Art also has…
