Episode 14: Altium, 1300 Smiles and stocks feeling property pain

We all like to attribute our winners to our foresight and cunning. The losers? Well, they were the result of bad luck. The truth, of course, is that random chance — both good and bad — plays a scarily big part in shaping our investment outcomes. That’s not to say it’s all just a roll of the proverbial dice, but it pays […]

Media reports suggest Private Equity is set to pounce…

Last year was good to investors. The last decade even more so. And with markets at record highs there’s plenty of shareholders feeling pretty good about themselves — especially those that had any exposure to tech. But as we roll into a new solar orbit, it’s worth remembering the difference between process and outcome. The market demands a good deal […]

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 […]

Why higher prices are bad for stocks

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 […]

A chance to top up, or good money after bad?

With a grossed up yield of 8.4%, could this be an attractive opportunity for income investors?