Episode 8: Macro outlook, Microcap investing & Scorecard review

This company is the world leader in its chosen field, with daylight between it and its nearest competitor. Moreover, the industry itself is growing rapidly and the company in question has so far only captured less than 20% of the addressable market. Sales have been growing at a double-digit rate, …

Similar themes at a lower price

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 […]

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 decent first quarter has helped push shares higher

Many hard problems are best solved when they are addressed backwards. Munger called this inversion, and it’s a potent idea for both life and investing. It’s pretty obvious when you think about it: if you want to be happy avoid things that make you miserable. Similarly, if you want to improve your investment returns, don’t focus on finding the next […]

Can this tech innovator follow in the footsteps of Nearmap?

With most companies issuing results this month, it’s a busy time for investors. And, given some of the volatility these results can induce, it’s also a period that can test your nerves. Sometimes the market’s reaction is perfectly rational. But not always, at least not in the context of how a long-term investor would appraise things. A good example lately is […]