Episode 10: Australian property, selling Class and buying Webjet

I was fortunate enough to join Luke Winchester (aka Wini) from Merewether Capital on Ausbiz last week, and he made a rather good point. Well, he made many, but the following stood out to me. To paraphrase: “If you can’t easily figure out exactly what a business does, it’s usually best to move on.” It’s a good heuristic. Right up there […]

Are shares a buy?

We recently caught up with Dalrymple Bay Infrastructure (ASX:DBI) CEO Michael Riches. The conversation reminded me of a neat little rule of thumb for valuing dividend stocks. If you’re someone who likes your dividends, it’s a handy addition to your investing tool kit. It’s called the Gordon Growth Model, and the simple version tells us that a stock’s total expected return is […]

Discussion, analysis and investment ideas from three investing tragics

Dicker Data’s (ASX:DDR) First quarter results were better than expected

When it comes to investing, mistakes are unavoidable. Even the best investors get it wrong — a lot. But here’s the thing: it’s okay to be wrong, as long as you handle it the right way. The trick is to make sure being wrong is rare, quickly admitted to, swiftly corrected, and (importantly) learned from.  Rare, Not Never No investor can […]

If you’re not growing, you’re dying. Businesses need at least a modicum of growth to push back against the relentlessness of cost inflation. And then there are cost of capital and opportunity cost hurdles one must consider.  Furthermore, if you’re standing still, there’s a chance your competitors aren’t —  which means you’re bleeding market share and relevance. Stagnation is also a […]

What is a share really worth?