We have noted of late, increased commentary about particular ASX listed companies that are perceived to be expensive on traditional measures - without regard for their actual business models. In this wire, we specifically discuss companies using 'scalable business models', define what this term means, and outline two examples. Show More
We got lucky. A few days after our last wire, discussing two stocks to watch, one of them, Afterpay, released a positive business update and the share price exploded, gaining in excess of 30% within a matter of days. Reading market commentary, a common perception is that Afterpay is overvalued... Show More
With reporting season fast approaching we highlight two companies whose results we will be watching closely: Afterpay Touch and Mineral Resources. We outline what we will be looking for in their reports to see if their incredible performance can continue. Show More
As investors, we are all looking for an edge in earning outsized returns. Here I identify 3 simple portfolio management principles that are essential in any investor’s toolkit, and briefly outline how they can all be brought together into a simple cohesive strategy. Show More
As investors, we all look for opportunities where there is a clear, coherent and compelling rationale for investing. Ideally, the opportunity should possess strong growth characteristics, and limited downside should our thesis not eventuate after a period of time. We look at one such thematic, and three microcap exposures to... Show More
Hi Ben, Thank you for sharing your thoughts, our next post will be on the shortcomings of traditional valuation techniques and how an individual can potentially value growth companies.
Thanks for your comments Simon, we agree broadly with your sentiments. Interestingly, Berkshire have invested recently in an emerging market payment platform, so it appears that they're beginning to recognise the value of owning a scalable business.
Alex, Dean has picked this company superbly, with great foresight. Your comments do indicate the degree of ignorance of the company's business model held by the wider investing public; which ultimately will benefit those who do understand the nuances of their business model.
Nice write up Lawrence, well done
Well written Chris
Good article Jonathan, I would also add the potential impact of externalities in the 12 categories of debt above. For example, the potential of US student debt to become discharge-able in bankruptcy etc.
Great suggestions Rodney; they are all very relevant to the long-term success of a company. However, we believe that the location and specific attributes of a deposit are unique and hence the most important piece in the puzzle. Patient, long-term capital and competent managers will always be attracted to great deposits in good locations; whereas a sub-par deposit in a marginal location may only be economic during certain periods in the commodity cycle, making it a far riskier proposition.