I recommend this recent piece in The Guardian – The Aldi effect: how one discount supermarket transformed the way Britain shops. It’s top shelf journalism. Show More
Steve and I recently attended an auto conference in Detroit. After years of flying high cyclically, stocks in the auto sector have sold off heavily recently. We’ve made a few investments in auto parts suppliers. Attending the conference was a chance to catch up with management teams of those investments... Show More
Every year I intend to publish our annual book recommendations sufficiently early for those seeking gift ideas. But every year, the list gets cobbled together in a mad rush a few days before the 25th, much like my own Christmas present shopping. Not this year, folks, not this year. Show More
Last week, I blogged about Facebook’s embrace of pain today, gain tomorrow type behaviour—something I’m always on the lookout for. Today, I’ll focus on perhaps the most important question mark about its future. Show More
We looked at Facebook stock—far too briefly it turns out—in 2013 when it was trading below US$30 a share. It had listed a year earlier and was in the doldrums because of what the market perceived as a ‘painful’ transition from desktop to mobile. Painful? That transition turned out to... Show More
The United Kingdom has become a particularly fertile hunting ground for the Forager International Shares Fund in a Brexit-tainted world. Six of the Fund’s 10 largest positions are listed in London. Two of those have businesses that are entirely domestic facing, two are more global in nature and the remainder... Show More
The best run businesses think long term. While it’s easy for management to roll out a few platitudes each quarter, talk is talk. The acid test is whether management embraces activities that hurt in the short run in order to reap in the long run. I’ve always thought of this... Show More
This will be short and likely controversial. There’s a lot of vitriol about dividend imputation these days. Much of it is misguided. However widely practised around the globe, double taxation of corporate earnings is unfair. Most countries acknowledge that fact indirectly by having low tax rates on dividends. Our dividend... Show More
Sitting in a pub with property man Pete Wargent a few months ago, we were discussing the property market of Sydney in the 2008-10 ‘downturn’. I use inverted commas because barely a blip registered on any city-wide measurement of house prices. Show More
I’m sure I’m not the only one running the ruler over capital goods giant GE (General Electric). Still influenced by the rein of Jack Welch from 1981-2001, the company is number 1 or 2 in an astounding array of businesses. Pretty good businesses at that. Show More
Forager’s two funds have quite high cash weightings today. It’s almost 28% in the Australian fund and 30% in the Forager International Shares Fund. On our recent roadshow tour, many intelligent questions were asked about the current cash weightings. Is it reflective of our thoughts on value available in stockmarkets?... Show More
Every asset in the world is priced with reference to the bond market, at least in theory. The bond market dictates your risk-free (ok, low risk) opportunity cost. It’s the so-called price signal. Say you’re considering investing in equities or real estate or barrels of oil – these assets entail... Show More
No we don't own it yet James but it's firmly on my watch list.
Cheers Andrew. My thoughts exactly. Lots of human power required for the new level of monitoring, and that's a big part of why the margin was guided down by management. Ultimately, a lot of this will be done by machines - meaning (all things being equal) those margins might go back up at some stage.