Episode 10: Australian property, selling Class and buying Webjet

What can investors learn from a 1200% gain?

Company earnings drive share prices over the longer term. More specifically, earnings per share, or EPS, does. It’s the great attractor that ultimately pulls prices along. You won’t find a single example of a company, ever, that has compounded its stock price over decades without also compounding EPS. It just doesn’t happen. That’s why EPS should sit at the centre of […]

This week, we attended the inaugural Coffee Microcaps conference, where we had the chance to hear from a bunch of interesting Micro-cap companies, as well as rub shoulders with some heavy-hitting private & professional investors. We run through our thoughts on all the companies that presented: Volpara (VHT), BlackWall (BWF), SkyFi (SKF), Kangaroo Plantation Timber (KPT), Locality Planning (LPE), XRef […]

Is it time to take profits?

Charlie Munger has loads of great quotes, but this one is a standout: The first rule of compounding: never interrupt it unnecessarily Charlie Munger The maths behind compounding is easy enough, but the intuition is anything but. If you can find an investment that compounds at 20% per annum, the gain you make in year 10 is greater than the total […]

Paradigm-shifting innovation always has its skeptics. It’s almost a rite of passage. Virtually all of our modern technological marvels — the things we today take for granted — were initially met with plenty of Fear, Uncertainty & Doubt (FUD). Steam power, electricity, radio, the internet are all great examples, but one less discussed tech revolution deserves special mention — simply because it seems so laughable […]

Investing, for all its spreadsheets and metrics, is largely an emotional game. We dress it up in the language of rationality — discounted cash flows, valuation multiples, risk-adjusted returns — but under the surface, it is a theater of human psychology. And at the center of this drama sits one virtue, unglamorous yet essential: patience. Not the passive kind of patience, the […]

Shares in digital eLearning solution provider Readcloud (ASX:RCL) were down 14% by mid-afternoon on Monday, and are now down roughly 50% from their 52-week high. So, what’s going on? With no ASX-announcement to act as a catalyst, and only a small volume of orders, it looks as though the move is merely a reflection of the illiquid nature of Readcloud […]