Don't bank on it getting better

Roger Montgomery

Montgomery Investment Management

Invest for the long-term. That’s the catchcry of a phalanx of advisers since investing in equities emerged from the shadow of railway bonds. But investing for the long-term only makes sense if you invest in extraordinary businesses. The longer you stay invested in mediocre businesses the greater your loss in either nominal terms or opportunities foregone – or both. A quick scan of the share price of Telstra, AMP or the NAB reveals today’s share price is lower than were it was more than a decade ago. Long term investing in these businesses has produced poor outcomes for investors who may still unwittingly describe these businesses as ‘blue-chip’. In The National Australia Bank’s case, the share price of $31.73 at the time of writing, is lower than where it was in May 2001 – almost 15 years ago. In the short run the market is a voting machine but in the long run, share prices cannot help but reflect the economic performance of the underlying business. READ THE FULL ARTICLE HERE: (VIEW LINK)


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Roger Montgomery
Founder and Chairman
Montgomery Investment Management

Roger Montgomery founded Montgomery Investment Management, www.montinvest.com in 2010. Roger has than three decades of experience in investing, financial markets and analysis. Roger also authored the best-selling investment book, Value.able.

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