Andrew pitches Integrated Research (ASX:IRI), Claude makes the case for Xref (ASX:XF1), and we answer some questions from listeners.
Episode 9: Integrated Research, Xref and Mailbag
Lessons from a 10-bagger
In June of 2015, shares in Objective Corp (ASX:OCL) — a much under-recognised compounding machine that provides software to government and enterprise customers — hit $2 per share. It was a record high following a staggering rally from just 20c a few years earlier. This ‘ten-bagger’ was certainly assisted by improving revenue and gross profits, both of which had grown 25% over the […]
Dumb Questions
When I first started to attend company briefings, I usually came away feeling more than a little stupid. It always felt like I was accidently sat at the adults table; nodding along like an idiot and desperately hoping no one expected me to speak. While others asked probing questions on all manner of esoteric accounting adjustments and industry specifics, I […]
Sentiment Vs Earnings
Over the long run, the main driver of share price is earnings per share (EPS). If, for example, EPS has grown at 10% annually over a decade, you can be reasonably confident that the share price will show a similar appreciation. Consider REA Group (ASX:REA), whose per share earnings compounded at an average annual rate of 27% between 2004 and 2023 (yes, it’s […]
No one wins all the time
Between 2019 and 2020 Warren Buffett’s Berkshire Hathaway (NYSE:BRK) underperformed the S&P500 by 37%. It was one of the poorer periods of relative performance for the Oracle of Omaha, who was “burdened” with loads of cash and missed out on a lot of the boom in technology stocks. As you can see, Buffett regularly lags the broader index. And sometimes […]
Investing in uncertain times
If there’s one thing that markets hate, it’s uncertainty. And with trade wars, political ructions and mixed economic signals — not to mention a host of company specific factors — it’s tempting for investors to sit on the sidelines until the outlook becomes clearer. The trouble is, if certainty is what you crave, you could be waiting for a long, […]
How to prepare for the next crash
It wasn’t a great week for the market, with the All Ordinaries dropping a further 3% from its August all-time high. And there’s plenty of reasons to be nervous. The US Federal Reserve is winding back stimulus and signalling higher lending costs. China — our largest trading partner — is facing a potential credit squeeze and property market slump, while trade […]