Equities form a core part of most long-term investment strategies; they offer strong long-term returns, but at the cost of higher volatility than many other assets. But how should investors think about their strategy in this important asset class? That’s the topic of this week’s podcast.

In part two of this three-part mini-series, I sit down with Hamish Carlisle from Merlon Capital. Hamish is an excellent communicator, and has written some of my favourite pieces of stock analysis on Livewire this year. The goal is to provide the tools and the background needed to get started investing in equities.

We discuss what makes a great equity investment, some important skills and concepts for new investors to learn, and he talks us through a current practical example of an investment that he thinks is materially undervalued.

Time stamps:

  • 2:35 – What makes a good equity investor?
  • 7:33 – The difference between cash flow and accounting earnings
  • 11:10 – The most useful skills for an investor to develop
  • 14:44 – Hamish’s 'rules of thumb' for investing
  • 16:40 – 3 important concepts in equity analysis
  • 22:42 – How long should you hold a position and when should you sell it?
  • 25:41 – Hamish shares a current, practical example of a stock they've invested in
  • 29: 33 – Hamish answers our favourite questions

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The information in this podcast is current as at the date of publication and is provided Merlon Capital Partners Pty Limited ABN 94 140 833 683 AFSL 343 753 (Merlon), the investment manager of the Merlon Australian Share Income Fund ARSN 090 578 171 (Fund).

It is intended to be general information only and not financial product advice and has been prepared without taking into account your objectives, financial situation or needs. You should consider the applicable disclosure document or product disclosure statement (PDS) and any additional information booklet for the Fund before deciding whether to acquire or continue to hold an interest in the Fund. The PDS can be obtained from your financial adviser, Fidante Partners’ Investor Services team on 13 51 53 or on (VIEW LINK). Please also refer to the Financial Services Guide on the Fidante Partners website. Past performance is not a reliable indicator of future performance. Neither your investment nor any particular rate of return is guaranteed.

Fidante Partners Limited ABN 94 002 835 592 AFSL 234668 (Fidante Partners), is the responsible entity of the Fund. Other than information which is identified as sourced from Fidante Partners in relation to the Fund, Fidante Partners is not responsible for the information in this publication, including any statements of opinion.

Bryn Walters

Relevant content and the podcast a great format. Not fit for purpose however in terms of the language used to explain concepts to potential first timers.

Patrick Poke

Thanks for the feedback Bryn, I endeavored to keep the language simple but I guess we can't always get it right. Hopefully in the last part of the min-series the language should be more straight forward.

Justin Crome

Excellent work. I'm still addicted to your news service. I will atone with one final gift...

fred spengler

Have just stumbled on your podcast while cycling round Vietnam. Great stuff. You're very easy to listen to and have good range of guests. As I'm binging on them now hear some of last years guests predictions have failed. Ahh if we could bottle hindsight. Keep up the good work

Patrick Poke

thanks for the kind comments Fred. Yes, unfortunately we can't get them all right. If you can get 6/10 you're doing alright I reckon. As the saying goes, "making predictions is hard, especially about the future".

Michael Bueskens

I always love listening to Patricks podcasts. I dont often know the guests, but so often get loads from every guest. Angie Ellis was no exception. Few other offerings in the plethora of information is so easily understood, enjoyable and helpful. Im a fan :)