Focus on the Business – Forget the Price

Published on
April 3rd, 2017
Topic
Investment Framework, Australia/New-Zealand
Duration
37 minutes
Asset class
Cash, Real Estate, Equities

Focus on the Business – Forget the Price

The Interview ·
Featuring Roger Montgomery

Published on: April 3rd, 2017 • Duration: 37 minutes • Asset Class: Cash, Real Estate, Equities • Topic: Investment Framework, Australia/New-Zealand

Roger Montgomery has a long and successful track record managing funds in Australia, based on a consistent view of identifying value and selecting companies able to generate high rates of return on incremental capital. Roger outlines his ‘line-by-line’ investment process and explains why he’s not worried about Trump or China, alongside insights into the Australian housing market boom. Filmed on March 21, 2017 in Sydney.

Comments

  • PD
    Ph D.
    6 February 2018 @ 18:40
    The interview can be a good intro for the uninitiated because he explains the 101, yet it is not a good use of time for the sophisticated given there is not much substance beyond the basics, very dry. It is no where close to the caliber of Friedman, Melkman, Nordvig, Gurevich, Gundlach, Grant interviews since it does not go beyond 101 to make meaningful linkages, insightful analysis and synthesis. In short it does not give one the feeling: "what a thoughtful, brilliant mind"or "that was an interesting perspective I have not thought about before"
  • MS
    Madiou S.
    10 April 2017 @ 22:46
    Powerful argument showing the strength and robustness of fundamental analysis.
  • IZ
    Ignacio Z.
    8 April 2017 @ 22:31
    Add my grandma's idea of markets: "to buy low, and sell high" and you should be ok in the long run!!!
  • sp
    shashwat p.
    5 April 2017 @ 10:32
    As a wise man once said: We are all Vol traders. There are investors who know that and there are those who don't. For those who are listening, the markets are telling you to go long implicit vol at an intermediate timeframe. This is not it. The cyclicals have been battered for 8 years nonstop, whereas "quality" has outperformed. 1 year of adverse performance is not enough to reset the cycle
  • DS
    David S.
    4 April 2017 @ 17:53
    Excellent interview. Mr. Montgomery pointed out the risk of an investment fund holding cash in a market downturn i.e., the investment fund becomes a source of funds for investors to cover margin calls and other cash requirements of its investors. Does Mr. Montgomery’s fund have any restrictions on withdrawals to keep cash in the fund for investing at the right time? Can new investors be educated on this issue to allow restrictions?
  • kv
    keith v.
    4 April 2017 @ 14:22
    I had to google: "Bulge bracket - The bulge bracket comprises the world's largest and most profitable multi-national investment banks whose investment banking clients are usually large corporations, institutions, and governments."
  • kv
    keith v.
    4 April 2017 @ 14:22
    I had to google: "Bulge bracket - The bulge bracket comprises the world's largest and most profitable multi-national investment banks whose investment banking clients are usually large corporations, institutions, and governments."
  • PM
    Peter M.
    4 April 2017 @ 12:06
    Great interview. Roger is a very smart funds manager and I have no doubt that over the longer term his results will reflect his methodology and commitment to value investing.
  • DR
    Debra R.
    4 April 2017 @ 08:40
    Terrific interview. Roger and the Team at Montgomery are outstanding.
  • PN
    Paul N.
    4 April 2017 @ 08:38
    Give Roger some time and he will read the riot act on the housing market in this country. Very insightful and backed with dozens of statistics.
  • GG
    Gerald G.
    4 April 2017 @ 02:01
    Wow! I flabbergasted that anyone would talk about long term value investing in todays environment. In a relatively stable system (as we have had for most of the last century) value investing is wisest and smartest approach (IMO) but... we are not in a stable environment anymore. We are at a point where the artificial inputs of CBs is causing the the entire system to resonate with wilder and wilder swings and with catastrophic failure the most likely outcome (again, and obviously IMHO).
  • LJ
    Lucille J.
    3 April 2017 @ 23:22
    excellent
  • SP
    Steve P.
    3 April 2017 @ 23:17
    What a refreshing and down to earth investment approach as distinct from the short term algorithmic 'buy: sell, buy sell' casino atmosphere of modern day exchanges and their 'investors'. His comment that HFT is a growing component of 'down under' exchanges is a sad reflection of how the global financial system is increasingly being hijacked by computers for short term gain all in the name of 'increased liquidity' (which disappears in an instant when the proverbial hits the fan and is most needed) . Roger implies that the intention of purchasing stocks is to provide capitol to allow business expansion over a suitable time frame and to then reap the rewards. As many of the great investors have found (Graham, Dodd, Buffet etc), when done diligently, and with discipline, it is an excellent method of long term wealth creation. Look no further than Berkshire Hathaway share prices. p s roger's book 'Valuable' is highly recommended as it provides a reasonably simple method of valuing companies based on financial fundamentals. I found it invaluable!
  • PS
    Peter S.
    3 April 2017 @ 22:20
    Brilliant !
  • DA
    Daniel A.
    3 April 2017 @ 16:36
    Great interview! Fantastic insight and such a normal bloke.

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