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Quality Investing

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On the virtue of owning wonderful businesses like CBA

The US market has pummelled Australia's over the past 16 years and for good reason: it has some incredible businesses. Australia does too, but if you want to enjoy US-type returns, you need to know where to look.

Now is the time to buy quality stocks

There's been a 13-year runway of varying degrees of capital allocation that paid little attention to fundamentals and valuation. If there was ever a market environment when quality stocks are expected to perform, it's now. 

A top quality company shows cheaper is not better

As investors, we all like to snap up a bargain but  cheaply-priced stocks tend to provide short-term, temporary pleasures. Meanwhile, a quality gem is the gift that keeps on giving, even if the entry price seems expensive.

How do different investing styles work?

Investment styles go in and out of fashion and can explain why some fund managers spend long periods under- or out-performing an overall index. But what are these major styles?

The flaw in 'value' index funds

When researchers identified the benefits of investing in 'value', index providers and asset managers created products to harness the 'value' factor. But is the construction of the index correct?

ETFs: survival of the fittest

ETFs have grown rapidly in popularity and diversity, but like managed funds, not all products will survive for the long term and there are consequences if a small-scale ETF is closed by its issuer.

My four enduring lessons from the 1987 crash

We are not in the heady market conditions of 1987 at the moment, but the biggest problem facing investors will be the urge to panic sell after a major fall, similar to the desire that drives buying at the top.

Quality ingredients improve both cooking and investing

Home cooking and value investing have much in common. While it takes more time and effort to carefully assemble the right ingredients, the results can pay off over the long run.

Index funds invest in the bad and the good

The promise of diversification, low costs and access to overseas markets are boosting the popularity of all types of index funds, but broadly diversified cap-weighted equity index funds can only promise ‘average’ returns.

What makes a company attractive?

While fund managers are reluctant to reveal their newly-found 'top picks' to the public, there is an underlying process which can be used to identify an attractive company to invest in.

Sometimes, it pays to find the truly visionary leaders

Looking beyond the top quality companies, it pays to find the true visionaries, the companies whose prospects are compelling into the distant future because of the strong momentum they have built.

What do fund managers mean by Quality Investing?

Quality measures gained popularity after the burst of the dot com bubble and the spectacular failures of companies such as Enron and WorldCom, and more recently, the GFC. But how do we measure quality?

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