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Value Investment

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Which type of investor are you?

It's so tempting to get lost in the noise and intrigue of financial markets that we can easily forget what type of investor we are. To have any chance of success, it's critical to avoid playing somebody else’s game.

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?

A Christmas fireside chat

  • 18 December 2014

As we wrap up 2014 and position ourselves on the blocks of 2015, it is worth considering how investors and consumers might behave. The big uncertainties centre around economic growth, inflation and the value of stocks.

Cheap stocks: how to find them and how to buy them

It's surprising to learn that only 25% of Australian listed companies are actually profitable. Whether you favour fundamental or technical analysis or both, how do you find and invest in cheap, good quality companies?

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.

Learn your knowns and unknowns

When investing capital, you expect the return to adequately compensate you for the likelihood of loss. Understanding both risk and reward is vital, so the more you know about 'knowns' and 'unknowns' the better.

Quality over quantity: a lesson of value

Value investing is much more than simply buying cheap stocks. The quality of a company is extremely important and there are three key elements you should consider that will help sort the good from the bad.

Don’t set and forget

Investors are often advised to take the long-term view and pay little attention to the ups and downs of the market. But adopting a strict ‘set and forget’ strategy can sometimes be short-sighted.

Technical versus fundamental analysis in equity markets

The two main approaches used to find good companies in equity markets are technical and fundamental analyses. Devotees of each style will argue their way is best. Roger Montgomery favours the fundamentals.

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.

Don’t go swimming naked for a short term thrill

Poor quality companies sometimes deliver impressive short term gains, especially when left behind in a previous rally, but the longer term is likely to disappoint. When equity markets turn, nobody likes to be exposed.

The ten commandments of small business

Many people who open a small business learn the most valuable lessons on the job. Here are some hard-earned insights after 20 years without a big corporate structure to deliver a regular pay cheque.

Most viewed in recent weeks

2024/25 super thresholds – key changes and implications

The ATO has released all the superannuation rates and thresholds that will apply from 1 July 2024. Here's what’s changing and what’s not, and some key considerations and opportunities in the lead up to 30 June and beyond.

Five months on from cancer diagnosis

Life has radically shifted with my brain cancer, and I don’t know if it will ever be the same again. After decades of writing and a dozen years with Firstlinks, I still want to contribute, but exactly how and when I do that is unclear.

Is Australia ready for its population growth over the next decade?

Australia will have 3.7 million more people in a decade's time, though the growth won't be evenly distributed. Over 85s will see the fastest growth, while the number of younger people will barely rise. 

Welcome to Firstlinks Edition 552 with weekend update

Being rich is having a high-paying job and accumulating fancy houses and cars, while being wealthy is owning assets that provide passive income, as well as freedom and flexibility. Knowing the difference can reframe your life.

  • 21 March 2024

Why LICs may be close to bottoming

Investor disgust, consolidation, de-listings, price discounts, activist investors entering - it’s what typically happens at business cycle troughs, and it’s happening to LICs now. That may present a potential opportunity.

The public servants demanding $3m super tax exemption

The $3 million super tax will capture retired, and soon to retire, public servants and politicians who are members of defined benefit superannuation schemes. Lobbying efforts for exemptions to the tax are intensifying.

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