In this section we explore investing basics, common themes and information to help guide your investing journey. 

The information provided is general information only. The information does not take into account your investment objectives, financial situation or particular needs. You should consider your own investment objectives, financial situation and particular needs before acting upon any information provided in this document and consider seeking advice from a financial adviser if necessary.

September 29, 2020

What do low interest rates mean for equity markets?

The last 30-40 years has seen a dramatic shift down in interest rates for much of the developed world. For example, the ten-year government bond yields in Australia and the US have declined from around 14 per cent in the early 80s to more recently lie somewhere not unadjacent to zero.
September 21, 2020

Why value investing makes sense

By George Hadjia

While there are a number of strategies to make money in the stock market, the Montaka funds subscribe to a value investing philosophy. But why does this make sense, and why is it likely to lead to favourable investment returns over time? Picture this scenario: you are walking through the supermarket doing the standard weekly grocery shop.
August 26, 2020

The three essential criteria to look for in a business

By Roger Montgomery

Investing isn’t easy. With so many businesses to evaluate, and so many conflicting opinions about them, it can be extremely hard to make sound investment decisions. To help you in your investment journey, here are the three essential criteria we use when looking for outstanding businesses to invest in. Exclusive Content This is exclusive content to subscribers on rogermontgomery.
August 21, 2020

The magic that happens when companies invest in their business

By Roger Montgomery

I love receiving dividends. Who doesn’t? But companies that pay out a high percentage of their profits are actually harming the long-term returns of their investors. Because, when it comes to making a company more valuable, paying out high dividends is no match for ploughing profits back into the business.
August 21, 2020

How to think like an investor – and not a gambler

By Roger Montgomery

If gambling on shares is your thing, then perhaps this blog is not for you. On the other hand, if what you want are sustainable, growing returns – over the long term – then read on.   Because, below, I set out some simple steps to help you make better investment decisions.
August 5, 2020

Is value investing poised to do well?

One of the most fundamental dichotomies that can be drawn in equity markets is the one that separates “value” from “growth”.  In simple terms, you pick a basic metric – say price to earnings ratio – and you divide the market up into those stocks with a PE ratio above the average (growth stocks) and those with a PE ratio below the average (value stocks).

June 26, 2020

Is the LIC market dead?

By Dean Curnow

Listed Investment Companies (LICs) have arguably been the poster child of the Exchanged Traded Product (ETP) movement. As at the end of May, LICs accounted for AUD $45 billion by market capitalisation on the ASX, with 108 offerings across a range of asset classes though mostly concentrated amongst Australian and international shares as captured by Morningstar.
June 22, 2020

Limits on growth

Value investing involves buying something for less than it is worth. In concept this is simple, but in practice it involves the more challenging task of estimating the future growth of cashflows over coming decades. There are certain types of businesses that have characteristics that allow for multiple S-curve growth patterns.
May 21, 2020

Where models fail

At Montaka we consider ourselves value investors. That is, we aim to buy a dollar of value for less than it is worth. Inherent in this approach is estimating the intrinsic value of an investment, and we use financial models to achieve this.
April 8, 2020

Part I: How reliable is Total Addressable Market (TAM) analysis?

By Amit Nath

A helpful mental model that we often incorporate into our research process at Montaka Global is Total Addressable Market (TAM) analysis. Through this process, we attempt to estimate how large the revenue opportunity is for a particular business. However, the picture isn’t quite as linear as it sounds. For example, take the advertising industry as it currently stands.

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