In a complex, ever-changing world, where domain-specific information is becoming commoditised and readily available, ‘multidisciplinary’ investing has become one of the true sources of an investment edge. Interestingly, despite the undoubted power of multidisciplinary investing, the investment industry is still largely built on the principle of specialization.
Investors have been promised an elixir of big returns and low volatility. But the truth is that to achieve outstanding long-term returns, investors must be prepared to endure large drawdowns along the way – even for the best-performing stocks and portfolios.
– Chris Demasi As Mike Tyson said, ‘everyone has a plan…until they get punched in the face’. That must be how a lot of investors feel just one month into 2022 after sharp falls in equity markets in January. But this recent bout of volatility and market weakness should not be a time to …
2022 investing game plan: The recent sell-off has put mega caps on sale Read More »
– Andrew Macken In the eyes of many investors, today’s mega-techs – Amazon, Microsoft and Alphabet, for example – are way overvalued. A cursory glance at the valuations of the North American majors suggests they are more expensive, say, than most of the big non-financial ASX-listed companies. You need to pay a higher multiple …
Why R&D masks earnings & value in today’s mega-techs Read More »
For investors, private markets ‘were the place to be in 2021’ and the best way to play the sector was owning the world’s three most prominent asset managers, Blackstone, KKR and Carlyle. It noted that Montaka owned all three companies in its portfolio and quoted our portfolio manager Chris Demasi.
Investment legend James Anderson said something interesting: that an investor today needed to read not just Buffett’s words, but also the shareholder letters of Amazon founder, Jeff Bezos. I took note of Anderson’s tip and immersed myself in Bezos’s shareholder letters, getting inside the great man’s thinking, and here’s what I learnt.
We continue to believe that the stock market offers materially better value than bonds, in general today. And this belief is based on detailed, ‘first-principles’ analysis. Though many stocks are overvalued today, some are still materially undervalued.
Given its opacity and difficulty to understand from an outsider’s perspective, culture is often underrated within investment firms. But at Montaka we believe culture is one of the most vital components in delivering superior long-term investment returns.
Three examples of stocks in the reopening, defensive and mega tech narratives highlight a market that would baffle a rational Martian.
In today’s high-gratification world, it is natural for investors to chase these intellectual hits and gravitate towards sources of new themes. The only problem is, it remains far from clear if these new themes are even themes at all.
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