Episode 16: More results — Wisetech, BWX, Kip McGrath & more, plus is Australia headed for recession?

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 […]

Shares have grown 4-fold already in 2019

Strawman member Bushmanpat kicked off an interesting thread this week, pointing out how pessimistic takes tend to dominate headlines, while optimistic ones are often ignored. Inspired by a piece in the AFR, it was a good reminder of the persistent bias in both media and markets: we are hard-wired to give more attention and credibility to bad news. Our tendency […]

There’s a lot to love at the smaller end of the ASX…

This week we lost one of the greats. Only one month shy of his 100th birthday, legendary investor and polymath Charles Thomas Munger departed this mortal coil. He had a rich and varied life with pursuits spanning law, mathematics, architecture — and much more besides. He witnessed first hand incredible societal and technological change and, of course, amassed a giant […]

Founder and Managing Director of Strawman Andrew Page chats stocks and investment theory with Jeremy

Consisting of over 2100 individual companies, the Australian share market has a few interesting features. One of the first things a curious investor might notice is the significance of the major banks. There are only 21 businesses on the ASX classified (loosely) as banks, but the ‘Big 4’ — CBA, NAB, ANZ and Westpac — are the clear standouts. Combined, […]

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 […]