Few Australian large-cap stocks have caused as many differences of opinion over company prospects as Telstra. They have been Australia’s largest and most profitable telco and a solid dividend payer. Yet, despite this, Telstra's shares have been disappointing performers since the company was floated on the ASX following an offer... Show More
The Australian share market is heavily concentrated amongst the largest companies both in terms of market capitalisation and industry sector. The top 20 stocks dominate the share market with the S&P/ASX 20 stocks amongst the most widely held and researched companies in Australia.Given the large concentration of the ASX top... Show More
Sharemarkets can drift seemingly higher and higher without a hitch for many years, then one day due to sudden turbulence, markets will often ‘pop’ and correct. How can an investor be prepared for such unforeseen events? Show More
Most people are familiar with the concept of compound interest when it comes to term deposits where one can earn interest on interest by continuing to roll over a term deposit several times. However, many investors do not relate the concept of compounding to their investments in the sharemarket. Show More
The Real Estate Investment Trust (REIT) sector – previously called the Listed Property Trust sector – has always been a popular sector with Australian retail investors and currently comprises 7% of the S&P/ASX 300 Index. In this lesson we discuss what we have always believed are the most important aspects... Show More
One of the key attributes that IML looks for when we invest in stocks is to focus on companies that have a sustainable competitive advantage. In our view a strong competitive advantage is a key reason why some businesses can outperform others over the longer term. At its core, a... Show More
One of the most basic economic concepts is the relationship between the demand for a product and its price: as prices go up, demand goes down, and as prices go down, demand increases. So if ‘widgets’ are generally sold for $10 and then go on sale for $5, people will... Show More
March 2019 will mark 10 years since the sharemarket recovery started, following the lows of the Global Financial Crisis (GFC). From March 2009 to the end of August 2018 the US S&P500 has returned a cumulative +393%, the MSCI World Index +282% and the ASX300 Accumulation Index +201%. It is... Show More
The significant outperformance of Resources over Industrials since February 2016, is a major factor contributing to the recent underperformance of Value managers like IML, compared to Growth and Momentum strategies which I discussed in a recent wire. Show More
In the world of haute couture, a famous designer once quipped – “In a world full of trends, I want to remain a classic”. At Investors Mutual we would rephrase it as: “In a world full of trends, we want to remain a true-to-label value investor”. Show More
Thank you Jim and Elizabeth!
Thank you for your comments Jarrad and Ben, we always have an eye on the downside at IML, something many investors forget until tough times arrive.
Thank you for all of your comments. I agree that dividends are just one important element of assessing when to buy shares in a company. At IML we look for 4 quality attributes: a strong competitive advantage; a history of consistent, recurring earnings; a capable management team; and the ability to grow earnings and consequently their dividends over time. We also seek to buy these quality companies at a reasonable price.
Thank you Shabbir, Wendy and Romano for your comments. It's been a busy week! Wendy we are working on a piece about yield sensitivity at the moment so stay tuned. And please let me know when your crystal ball arrives back from the shop as I'm interested to hear what it has to say!