The Dow Jones’ 2-day, 1,800-point correction, left many investors scrambling for ideas on Monday and Tuesday. By 10:30am Wednesday, many stocks had recovered close to their previous highs. While most experienced investors know that corrections and crashes can offer great buying opportunities, it’s easy to be caught off guard by... Show More
Many investors talk about quality businesses and many, like us, seek to buy these businesses for our clients. But what exactly is quality, what are the signs to look for, and why is it so important? Show More
A stand-out feature of global equity markets in the past few months has been a marked rotation away from expensive ‘quality’ stocks into cheaper ‘value’ stocks. As the chart below shows, quality stocks strongly outperformed up to the middle of 2016. However, by November, value stocks had caught up and... Show More
Jacob Mitchell, Chief Investment Officer at Antipodes Partners, says it's more than just the quality of the business that drives investor returns, it's also about the price you pay to invest. "Your returns from the investment, as opposed to your returns from the business, rely on the starting value." Mitchell... Show More
Recent research by Montgomery shows that not only are high-quality businesses, running ahead of their intrinsic value. So, too, are the largest names on the ASX, which means long-term investors should approach this market with a degree of caution. Recently, we asked the question: is this problem more acute in... Show More
In our view, a quality company has a sustainable competitive advantage, strong organic growth options, high return on capital, excellent management, limited need for capital expenditure or debt and reasonably predictable long-term earning streams. Based on our experience, we can carefully define and quantify these characteristics. Quality companies should outperform... Show More