Auscap Asset Management

Have low interest rates in the major developed world economies caused asset bubbles in the emerging economies around the globe? What might the consequences of this be? Can leverage ratios continue to increase to support growth? What will happen if interest rates rise? How should this affect our thinking about... Show More

Auscap Asset Management

The irony of risk is that when a risk is most obvious, most discussed and most feared, assets are normally being priced attractively to compensate for that risk. When risk is present but not feared, not apparent or not acknowledged, asset prices typically rise, which can lead to investors receiving... Show More

Auscap Asset Management

Investment risk is the probability or likelihood of loss in relation to a particular investment. In the last newsletter we discussed business risks as some of the most apparent investment risks when purchasing shares of a listed company. But there are plenty of investment risks that are not business risks.... Show More

Auscap Asset Management

Most seasoned investors agree that an understanding of risk is a critical part of the investment process. Some investors adopt an investment approach and then try to manage the risks associated with the investments they have made. For Auscap, risk frames our investment approach. Management of risk comes first, prospective... Show More

Auscap Asset Management

Investing in the stockmarket must be the perfectionist’s worst nightmare. There is often no clear right or wrong investment. There is never a value equation that can actually be solved. No matter what some might suggest, there is no specific price that accurately values a company, or at least not... Show More

Auscap Asset Management

In the boardrooms of corporate Australia and across the national press there has been a great debate unfolding. The suggestion is that payout ratios, or the amount of corporate income that is paid to shareholders in the form of dividends, are too high nationally. Apparently many companies are sacrificing future... Show More

Auscap Asset Management

2016 has started with significant volatility in global equity markets. The Australian market has not been spared, with the ASX200 Index falling 5.48% in January and continuing this declines into early February. In the 11 months ending 31 January 2016, the index was down 15.6% from its monthly closing high... Show More

Auscap Asset Management

Should investors be focused on timing the market? Historically, many successful investors have been quoted as saying that they do not try to time their investments and this has led to the common belief that it is time in the markets that is crucial to success. While we agree that... Show More

Auscap Asset Management

It often feels less risky to be invested in the most widely held stocks… but is this actually the case? By their very nature, these well owned companies are well known, very large and typically well-capitalised businesses. Their size and familiarity offer comfort to the investor and somewhere along the... Show More

Auscap Asset Management

Where’s the market headed from here? It’s a common question asked, and we are not convinced that anyone will successfully tell you where it will be tomorrow, let alone weeks or months into the future. However it does beg the question – if predicting the direction of the market is... Show More

Auscap Asset Management

Group think is dangerous. At the major turning points in markets the majority view is often an incorrect one. Both WTI and Brent crude prices have declined dramatically in the last few months despite the near consensus view that they should rally. The common view that oil should shortly trade... Show More

Auscap Asset Management

What makes Warren Buffett truly remarkable is the fact that he is almost unarguably the greatest financial communicator and educator the world has seen. Auscap attended the 50th AGM of Berkshire Hathaway in May this year and our latest newsletter highlights a few of the insights we gleaned. The commentary... Show More

Auscap Asset Management

Is it a time to be alert but perhaps not alarmed? We are frequently asked whether or not we consider the share market to be expensive. In our opinion, equities continue to look reasonably priced in absolute terms and attractive relative to alternative asset classes. This is reflected in an... Show More

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