Misunderstood Multiples and Montaka’s Solution
When you look at a multiple, it may seem high at first glance. But it is essential to focus beyond this and understand the underlying business, its growth opportunities and what current market expectations imply. Certainly, a high multiple can be a red flag for overvaluation. However, you cannot draw any real conclusions from that multiple in isolation.
Lifting the hood: 5 big investment ideas from the recent reporting season
We have recently passed yet another reporting season where investors typically try to analyze heaps of information that could impact short-term stock movement. Read on to know what our team has identified as the 5 big investment ideas from this recent reporting season to gain an edge in your investment decisions.
Learning from investment legend James Anderson: Growth at an Unreasonable Price
James Anderson has spent decades capitalising on the market’s short-term focus by buying traditionally “expensive” stocks with incredible upside potential. Here we take a page out of his investment playbook.
What’s next vs what it’s worth
During periods of uncertainty, investors often default to first-order thinking and overweight what’s next. In these environments, attractive opportunities can be found by remaining focused on what a business is worth.
Will Your Multiple Compress?
Investment returns, in the long run, are dictated by two factors: earnings growth and changes in the earnings multiple. Many high-flying businesses today are trading at exorbitant multiples. What are the implications of this for long-run annual returns for those stocks?
Applying the Connor Leonard Framework
Value investor Connor Leonard successfully filters business opportunities into four subsets. We explore Reinvestment Moats – entrenched flywheels where management can redeploy capital at high incremental rates of return.
Beneficiaries of under-financed US business
“Discussing how the weak US middle-market business outlook is beneficial for the large alternative asset managers
Scale Economics Shared – Digitally
Nicholas Sleep coined the “scale economics shared” model to identify Costco’s long-term advantages. He later found it had even strong applications to internet retailers, betting big on an “overpriced” Amazon in 2007. In today’s digitally accelerated world his observations are finally being reflected among mainstream investors.
