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FA & TA Analysis

Not Bonds Now

Not Bonds Now If you are retiring soon or have already retired, the mantra you recite each morning is, or will soon be, 'cash flow, cash flow, cash flow'. Of course as you no longer have a job to produce that income your savings and investments must now be relied upon to produce the cash flow you require to satisfy your lifestyle and future healthcare needs....
 

Interest Rates and Financial Crisis

Interest Rates and Financial Crisis In an environment of low interest rates (that will eventually rise), and record high asset prices (that will eventually decline), now is the time to instruct to your adviser to investigate alternative strategies such as market neutral funds. After reading today’s column you may be asking your adviser or the team at the family office team to 'speed it up'....
 

Emerging from the shadows

Emerging from the shadows When the sun is shining, and its sparkle shimming off the water, a view of Sydney Harbour is one of the best in the world. The grungy cafes and laneways of other cities look like dank, grimey metal-recycling facilities by comparison. The Sydney views are so covetable that prices for Sydney harbour front homes will hit $100 million at some stage in the not too distant future. Had Sydney Harbour been located any closer to the US or Europe, prices would have hit $100 million many years ago...
 

Low Is Not Normal

Low Is Not Normal When the sun is shining, and its sparkle shimming off the water, a view of Sydney Harbour is one of the best in the world. The grungy cafes and laneways of other cities look like dank, grimey metal-recycling facilities by comparison. The Sydney views are so covetable that prices for Sydney harbour front homes will hit $100 million at some stage in the not too distant future. Had Sydney Harbour been located any closer to the US or Europe, prices would have hit $100 million many years ago...
 

Growth Of A Company

Growth Of A Company As a long-term investor I know our clients will do just fine if we own shares in companies able to reinvest capital at high rates of return. If I auctioned a $100 million bank account earning an enduring 20% interest rate, I would receive more for it than a bank account with $10 million earning the same 20%. Therefore, if we buy a business today with equity that subsequently rises ten-fold while maintaining its return on equity, our investors will make a lot of money...
 

The Importance of Holding onto Cash

The Importance of Holding onto Cash Montgomery Investment management holds both a research meeting and an investment committee meeting weekly. We recently held our shortest investment committee meeting. I timed it. It went for 22 minutes. What gives?...
 

Why blue chips let you down

Why blue chips let you down Are your returns stuck in a time warp? Are you surprised to hear Telstra’s share price is lower than it was in 1999? The NAB share price is also lower. That’s sixteen years with no price growth...