Another cuppa, moms and dads?

I was inspired to write this post after reading a recent article in the SMH by Noel Whittaker. Cappuccino or latte (cafe latte) is about $3.50 in Sydney. Can you build a nest egg just by forgoing one cuppa a day? You bet. As a parent with a young toddler, I believe starting an earlyRead More

Bitcoin, fool’s gold

Looking back at 2017, I think the biggest financial news for the year was bitcoin’s meteoric rise from $964 on 1 Jan 2017 to a high of $19,100 on 18 Dec, a return of 1,884% in less than 12 months. After hitting the highs, its price has fallen and is currently trading at $14,000. ItsRead More

Unexplained volatility

I’ve owned Regional Express’ (REX) for a while now and lately I’ve noticed that the share price movements have been more volatile than usual. After yesterday’s massive 11.3% gain, I wanted to see whether the recent share price volatility made any sense. In terms of significant announcements made by the company; the FY17 financial results,Read More

Credit and the economy

A few months ago I wrote this piece about the banking environment and ANZ where I touched on the high level of household debt in Australia. I believe that the high level of debt is a major risk to the economy so I wanted to get an idea of the total amount of Australia debtRead More

So you want to beat the index

This is a follow up to the Mr. Market and Charles Munger posts. Long term outperformance against the index is rare. Based on this smh report, it says that 2/3 of all active Australian fund managers fail to outperform their benchmarks over a 3 year and 5 year time horizon. Another thing that is alsoRead More

Mr. Market and Amazon

It is harder today to find bargains than when Ben Graham or Warran Buffet ran their investment funds, I don’t think there is any doubt there. Statistically cheap stocks (net nets or even massively discounted NTA) very rarely turn up and when they do, they typically have massive leverage with high default and insolvency risk.Read More

Finding an edge

Seth Klarman, one of the great value investing gurus talks about the important of finding their edge at Baupost Group. I also believe this is very important as investing is not that much different from sports, where if you play competitively you are always trying to find an edge over your opponent and in theRead More

Painful lesson

I recently got burnt from a stock which I bought earlier in the year. I didn’t blog about this because at the time I thought it was somewhat too speculative and risky for this blog (and on hindsight wondered why I idiotically made the punt).  The stock I bought was RNY Trust, a REIT withRead More

Initial Public Offerings

I read an interesting article on Bloomberg yesterday (click here to read) about Australian IPOs and how the odds of losing big from an Australian IPO is uncomfortable large. Bloomberg analysed 112 IPOs in Australia worth more than $50 million over a period from 31 Dec 2008 to 31 Dec 2015 and found that 17 out of 112Read More

Incentives

Creating the right incentives  Last week JB Hi-Fi (JBH) announced that there were some discussions with The Good Guys (GG) on a possible acquisition and that these were preliminary and exploratory in nature.  The rationale for the acquisition is that it would turbo-charge JBH’s foray into the white goods space. Based on media reports, revenueRead More