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

Growth is often seen as synonymous with success in business. A company that expands rapidly, increases revenue, and captures market share is generally celebrated as a triumph of entrepreneurship and innovation. But beneath this enthusiasm lies a deceptive truth: not all growth is good, and much of it can, paradoxically, destroy long-term value for the very people who own the […]

There’s this internet slang term you may have heard of: NGMI. An acronym for “not gonna make it,” it’s used as a bit of a dig at those making poor life choices. Texting your ex at 2 am? NGMI.Buying a jet ski on Afterpay? NGMI. Turns out, it’s also the perfect slogan for the stock market. Every bull run, every […]

A new partnership and increasing revenue have underpinned a further jump in LiveTiles shares

Over the past few months I’ve had the privilege of giving a series of talks at the Financial Services Institute of Australasia — or FINSIA, for short. Targeted at private investors at the start of their journey, the series aimed to give attendees a solid grounding in the core aspects of share market investing. Free from jargon, and leaning heavily […]

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 […]

“Life is really simple, but we insist on making it complicated” Confucius  The same could be said of investing, where the complexity bias — a logical fallacy which equates complexity with accuracy — results in a proliferation of highly detailed models and valuations.  But, to paraphrase Joel Greenblatt; if you can easily and simply explain why something’s a great business, and how […]

Ranked #11 on Strawman, shares remain below fair value…

We tend to lump stocks into two camps: small and risky, but with tantalising upside, or big and boring, plodding along with dependable (but modest) returns. But that’s a false binary; there is, of course, a vast and often fertile patch between these two extremes. Not that this is news to Strawman members. But Corey Leung from WCM Investment Management makes a compelling […]