If you think about what it takes for Telstra to put the cable work under the roads and under the footpaths, you have to basically shut down streets. It's very expensive and takes a lot of time. The benefit of the US, particularly providing fast internet broadband speeds, is that... Show More
Tencent is China's largest company, it's an absolute economic and financial beast. This is a company that basically started from scratch 10 years ago and it's now worth over US $500 billion. Most of its money is made from online, mobile and PC gaming; it represents about 60% of revenue... Show More
The Chinese use the internet more frequently than what we typically do in the west. For example, I might buy a pair of sneakers from overseas once or twice a year, whereas the Chinese will buy their toothpaste and all sorts of daily goods every day. This is because they... Show More
Research shows that founder-led companies outperform. While that might not be surprising given the recent share price performance of US tech titans such as Amazon, Alphabet, Netflix and Facebook, which are led by their founders, research shows that this phenomenon isn’t limited to the technology sector (see charts below). Show More
With the bull market entering its tenth year and interest rates increasing, what’s worked so well since the GFC, including buying high growth stocks, defensive businesses and high yielding stocks, is unlikely to work well through the cycle’s next phase. Show More
If you’re a know-something investor, then you’ve likely been expecting or hoping for a correction with increased volatility for a while. Corrections are normal, what’s been abnormal is the 59% increase in the S&P500 from the low of 1,810 in February 2016 without a 5% correction. Clearly this blissful period... Show More
Recently a friend described investing over the past eight years since the GFC as investing for the journey. With the world economy currently enjoying a rare patch of synchronized growth, we’ve now arrived. That means it’s a good time to review your battle plan should markets become far less accommodative... Show More
After eight years of falling interest rates and quantitative easing, most investors are wondering how long before the next great fall and when it will happen, mostly so they can dump their shares and avoid the pain suffered during the GFC. Show More
Telstra’s share price has fallen 40% since it reached a high of $6.61 in February 2015, and the company is currently facing more pressure than ever. The company is forecasting a dividend of just 22 cents next year, down from 31 cents, for a 5.5% dividend yield. Show More
One way Nathan Bell and the team from Peters MacGregor find investment ideas is by looking at familiar sectors and identifying undervalued global analogues. In this short video with Livewire, Nathan describes a Google lookalike trading at less than half the valuation. Show More
Loved the honesty Matt. Great interview boys!
Unfortunately I haven't had any luck finding a broker either Michael. Cheers, Nathan.
Hi Patrick. In contrast to Alibaba, JD.com is known for selling authentic goods. I've noticed a number of Australian and US businesses favouring JD to protect the value of their brands. In short, the strategy definitely has merit, but Alibaba has been playing hard ball with sellers by insisting that they choose either Alibaba or JD, and Alibaba is still the big kahuna of the industry with the most customers. I don't expect that will change, but JD can certainly gain market share (in a growing market) as research has shown that wealthier Chinese prefer JD due to the authenticity of its products. It's hard to show off your wealth with counterfeits. Australian companies may also prefer targeting wealthier Chinese customers,, in addition to feeling their brands are being protected by a trusted retailer in JD. Cheers Patrick.
PS. There's a more detailed (but not too long) analysis on the company's current prospects in our March 2017 quarterly if you're interested: https://petersmacgregor.com/investments/peters-macgregor-global-fund/global-fund-report/
Cheers David. It should say 'up to' 10% for the option. It's an amazing story. The shares are up nearly 4,000% over the past couple of decades. It shows the benefit of spotting these types of owners and businesses early and hanging on.
Hi Mark. Whenever you perform a screen like this you need to double-check the numbers with the source documents (i.e. the company accounts). Without doing the requisite work I had assumed Crown popped up because it was flush with cash after the Macau assets were sold (again, I haven't checked this). Nonetheless, your conclusion is spot on. It's highly unlikely you'd find a well known, large-cap stock meeting Graham's criteria. That's probably been the case for decades outside periods of panic like the GFC for several reasons (including Graham's criteria simply being too restrictive in modern markets). You might find more examples amongst micro-caps, but they often have little liquidity and investing services and investors are also screening for these ideas, so it's competitive. Markets are far more efficient today compared to Graham's times, as software didn't exist to do the hard work for him. There were also far fewer investors and hedge funds around back then. Cheers Mark.
Thanks for the feedback Patrick. From my limited experience driving supercars (i.e. zero), I tend to agree i.e. I don't think it will be a big issue. The company is confident that once they get someone into the new cars they won't notice too much difference, assuming there is one. If you've got your heart set on owning a Ferrari this issue isn't likely to change your mind once you've sat in the cockpit, and there are certainly pros to the turbos as well. From what I've read they still sound ok and they go faster, not a bad compromise. I look forward to having an opinion based on experience some day. Cheers Patrick.
Thanks Patrick, hopefully my future posts are as interesting as the old.