Buckle up: This market is throwing up amazing companies at amazing prices
Investors are well aware that equity markets have commenced 2022 with severe volatility and big price declines. Certain long-term winning businesses have recently become a lot cheaper. That is, less risky. We acknowledge that the drawdowns have been uncomfortable, as they always are. But understanding these as part of the natural journey to strong long-term compounding gives peace of mind to stay the course.
Behind the Scenes – Q&A with Andy & Chris on bringing Montaka’s new AI whitepaper to life
Investment specialist Matthew Briggs interviews Andy and Chris about our latest whitepaper on AI (artificial intelligence) and the reasons for selecting this topic.
Why R&D masks earnings & value in today’s mega-techs
– 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 […]
Monocle’s 5 most important articles
From misunderstood valuation multiples, to winning portfolio construction and investment cultures, and some of our top investment themes. These articles were some of our most read and shared last year – and we believe they hold important lessons for how to navigate the year ahead.
How Amazon founder Jeff Bezos’ shareholder letters made me a better investor – 7 lessons learnt
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.
3 market myths that threaten to derail investors’ long-term wealth
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.
Does your fund have a winning investment culture?
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.
Barbarians in your portfolio: The best way to access the private markets boom
Of the private market giants, our preferred option is Blackstone, the world’s number one player with $US731 billion of assets under management (AUM) across all asset classes. The company has grown its AUM by 16% per annum for the last decade. It has created a ‘flywheel’ where its success allows it to attract the best talent and best deals, that lead to further success.
Why have investors become theme junkies?
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.
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.