Great investors have an uncanny ability to find attractive investment opportunities in any market. During the depths of the GFC when fear of the unknown paralysed most investors, Howard Marks, co-founder of Oaktree Capital Management, invested an average of USD $625 million per week during 2008-2009. A shrewd (and profitable)... Show More
Investing is about understanding businesses and as with all things business-related, nothing is ever clearcut. Businesses are comprised of a set of strategies which have been selected and implemented by management. However no one can guarantee the success of a business strategy - not even management themselves. So what hope... Show More
I’m about to be somewhat facetious. Imagine two children each setting up their own lemonade stand. One is meticulous, works hard at bringing in customers and making the best darn lemonade he can. He soon has a slew of happy little customers. Sure, he starts to struggle when the crowds... Show More
Having spoken to many investors, the most common misjudgement I’ve observed is binary thinking. That is the tendency to think in black and white. Let me share two stories that illustrate why investors are missing out because of this, and how you can avoid the same pitfalls. Show More
History’s greatest investments weren’t only decided on calculators. Investing is an art, not a science and the ability to analyse beyond the numbers is how you will make great investment decisions. Although number-crunching is a crucial aspect of valuation, it is not the be-all and end-all of investing. Here are... Show More
In this wire, we discuss building a diversified portfolio without sacrificing on returns. Not only is it essential to diversify your eggs across different baskets, it’s equally important to make sure you’ve got concrete eggs and steel baskets. Show More
It’s ironic I’m writing my first wire to outline techniques you can use to beat professional fund managers. The fact is, most people assume that professional fund managers have an informational edge over everyday investors. This isn’t true. Show More
Thanks for engaging Grant. Yes, we absolutely live and breathe the founder-led ethos given Lumenary backs exactly these kinds of organisations and is also founder-led in itself by yours truly. We do believe that founder-led organisations tend to place a stronger focus on fundamental matters of good business such as an ethical and customer-focussed culture, which Hayne mentions in his interim and final reports as being at the heart of many issues, rather than a lack of regulation. We aren’t in any way suggesting anti-regulation, nor have we indicated that penalties shouldn’t be imposed for bad behaviour. Best practice governance frameworks such as the ASX’s Corporate Governance Principles and Recommendations for example, have done nothing to address these cultural issues.
Great event and insightful commentary. Thanks James
Thanks Rob. In my opinion opportunities are there for those that can see the bigger picture. As they say 'if you don't look, you won't find'. Curious to hear about other common misjudgements observed by others.
Agree. As Warren Buffett says, businesses run well when everyone eats their own cooking.
There's always the option of allocating some investments to proven quality and some to more blue sky-type investments. It sure doesn't have to be one or the other. I'd also add proven quality and promising aren't mutually exclusive. There are promising companies that also have proven quality. Think Nike, which continues to go from strength to strength and continues to evolve their business continually.
The ability to dedicate time and have the 'finger on the pulse' is the main advantage fundies have. At the same time there are also other structural constraints faced by fundies. Given the competitive landscape is constantly evolving, investment theses are never static, always dynamically evolving. @Shaun, I'll be writing a piece about emotional biases (including commitment bias) shortly. If you've chosen to drive with a manual car, then you'll have certain advantages - just make sure you dedicate the time to learning it properly, otherwise automatic is a safe choice.
Thanks Emanuel. I enjoyed contributing my first wire. Nice to connect with similar-minded investors.