value investing

As the valuation gap between the US and the rest of the world narrows, we see value opportunities outside the US. Show More

After several years of plain sailing, investors are now having to contend with global markets that are far more risky. These market conditions have been created by an almost perfect storm of global issues. While the issues are out of our control, there are important steps we can take when... Show More

In 2017, emerging markets delivered some of their best returns since 2009. However, a series of headwinds – which include a stronger US dollar, lower liquidity due to rising US rates, China’s attempts at deleveraging, and uncertainty surrounding trade – have now hit. This has meant some of those gains... Show More

With the 10-year US touching 3.24%, we have revisited a Buffett interview from earlier this year, discussing the impact of rising rates, as well as offering a timely reminder to stick to fundamentals during volatile times. Read on for the transcript with video. Show More

In the past quarter, we have seen a significant divergence between the performance of the US stock market compared to emerging markets and Europe. Donald Trump’s hard stance on tariffs and his trade wars have driven fear into emerging markets, especially China. Weakening manufacturing numbers in Europe, a populist five... Show More

Last week the Bank of England put top executives at banks and insurers on high alert to vastly improve their planning for the long-term risks of climate change. The FT reports that several big banks have announced plans to reassesses their lending to high carbon-intensity projects, while promising to promote... Show More

One of my all-time favourite movie scenes is when Woody Allen stands in the queue in Annie Hall (1977) and he ends up having a discussion with the loudmouth academic behind him who professes to know everything there is to know about Marshall McLuhan. Show More

10 years into a bull market, and with most major indices showing triple-digit percentage gains from their lows, finding value is tough. Compounding the challenges, ‘value stocks’ by the traditional definition have underperformed throughout this period. Despite this, some value investors are still posting outsized returns. If history is any... Show More

Despite political tension and underperformance of the European Financials sector in the June quarter, results in 2017 and the first quarter were solid. We saw upgrades for the European banking sector through 2017 on the back of improving loan losses and continued uptick in lending growth. The banks are also... Show More

ABS data recently showed that global investing flows have overtaken those for local investing. With the ASX lagging global peers for the last decade, it’s not hard to see why. But is the grass really greener out there? And if so, what are the risks and where is the value?... Show More

As Peter Lynch once famously said “You get recessions, you have stock market declines. If you don’t understand that’s going to happen, then you’re not ready, you won’t do well in the markets”. Today I’m going to discuss some ways in which investors can protect their portfolios from downside risk. Show More

Cochlear (ASX:COH) is one of Australia’s shining examples of technical adroitness and export attractiveness, an example to entrepreneurs of what can be achieved in Australia despite punitive wages and regulation. Show More

Value investing has a long and illustrious history, championed by none other than Benjamin Graham, the man who arguably invented scientific stock analysis in the 1930s. Show More

The significant outperformance of Resources over Industrials since February 2016, is a major factor contributing to the recent underperformance of Value managers like IML, compared to Growth and Momentum strategies which I discussed in a recent wire. Show More

In the world of haute couture, a famous designer once quipped – “In a world full of trends, I want to remain a classic”. At Investors Mutual we would rephrase it as: “In a world full of trends, we want to remain a true-to-label value investor”. Show More

When Warren Buffett first started buying businesses with ‘moats’ in the 80s, such as Coca Cola, his disciples thought he was crazy. More than 30 years later, buying businesses with a moat is accepted wisdom. Morningstar even offers a 'moat rating' on thousands of stocks from around the world. Show More

The following is an extract from a note that was recently sent to investors in the Montaka Global Fund. There is a famous quote attributed to Ray Kroc, the founder of McDonald’s (at least as we know it today): “The key to success is being in the right place at... Show More

In 2016, Wesfarmers (ASX:WES) raised the eyebrows of many investors when it expanded into the UK and Ireland hardware business. Two years later and $1.7 billion down on its investment, WES has decided to pull out. It shows yet again why growth through acquisition can be a risky strategy. Show More

Long before the term disruption was popularised by Silicon Valley, high quality business managers have been alert to the existence of change. In fact, Joseph A. Schumpeter, in Capitalism, Socialism and Democracy noted; Show More

Today I review the investment classic authored by Christopher Browne, ‘The Little Book of Value Investing’. Browne was a partner at Tweedy, Browne Company – the oldest value investing house on Wall Street. Again, I recommend reading the book in its entirety. However, here are my favourite chapters. Show More