April 2019 Newsletter | As the father of value investing, Benjamin Graham, stated “in the short run, the market is a voting machine but in the long run, it is a weighing machine”. And the thing being weighed in the long run is earnings. Taking a long ... Read more
The Residential Construction Contraction Conundrum
March 2019 Newsletter | Can Australia handle a contraction in residential construction? This is the question perplexing many market commentators. There is an adjustment occurring in the residential property market. In this newsletter we examine the ... Read more
A Value Investor’s Perspective On Digital Disruption
February 2019 Newsletter | “Digital disruption” has been a catch-cry for new technology companies that are challenging established and traditional business models. Understanding broadly how disruption works, what opportunities there are to take ... Read more
Is There Value In Value Investing
January 2019 Newsletter | We believe that buying companies for less than they are worth is the best approach to long term value creation. This typically occurs when the market is negatively predisposed, focused on short term issues that are likely to ... Read more
Market Observations In Turbulent Times
December 2018 Newsletter | A cocktail of events has led to a reasonably large liquidation of positions in the Australian market. The selling has been unusually indiscriminate. Expensive stocks have been sold down. But so have shares in companies we ... Read more
Portfolio Update & Opportunities From Volatility
November 2018 Newsletter | In this newsletter we discuss the performance of the portfolio over the last three months. In our experience, negative markets tend to drag down most stock prices, in the short term, somewhat irrespective of the underlying ... Read more
The Shareholder Conundrum – Agency Risk
October 2018 Newsletter | The agency dilemma is the risk that management of a company, consciously or subconsciously, uses its position to benefit itself rather than the shareholder base. In this edition we discuss this risk in detail, and why the ... Read more