Standout companies in Australia Standout companies in Australia Wentworth Courier – 28 October 2020 Earnings Growth In my article It’s All About Company Earnings I compared the earnings growth of one of the major banks to their share price movements. This allowed me to demonstrate their clear link. Between 2005 and 2015 the banks’ earnings grew by between 5% and 10% per annum, while a $100,000 investment grew to $175,525 over the 10-year period. Since
Standout companies in Australia Standout companies in Australia In my article It’s All About Company Earnings I compared the earnings growth of one of the major banks to their share price movements. This allowed me to demonstrate their clear link. Between 2005 and 2015 the banks’ earnings grew by between 5% and 10% pa, while a $100,000 investment grew to $175,525 over the 10-year period. Since then the banks’ earnings growth has declined to an average
It's all about company earnings 14/10/20 It’s all about company earnings Your Feedback In recent weeks we have received some great feedback in regard to my recent article titled The Key to Investing. In this article I compared a popular bank share, that paid a high dividend, against a growth company in the Health Care sector that my clients have been invested in since 1999. Several readers wanted to know why I place so much emphasis
Dividend Paying or Growth Companies ? Dividend Paying or Growth Companies? We have received some wonderful feedback from readers of our last article Good Dividend Paying Companies. As expected, the most popular questions were ‘what is the name of the growth company?’ and ‘are there any other companies that will produce this amount of growth’. The comparison I made was between one of Australia’s most popular ‘good dividend paying’ companies versus one of Australia’s most successful growth
Good Dividend Paying Companies 12/8/20 Good Dividend Paying Companies In October 2015 I wrote an investment paper on ‘Investor Challenges in Today’s Low Interest Rate World’. Back then most banks were paying only 2.75% on a term deposit and many astute investors purchased ‘good dividend paying shares’ as a way of obtaining a higher yield. In the investment paper I proposed an alternative approach that followed the method used by famed US investor Warren Buffet.
What are the opportunities in the likely recessionary conditions ahead? It is likely that Australia is in recession right now, and how long that recession lasts no one knows. Important economies like the US, UK and Europe may well have deep prolonged recessions. The key point is that no one knows how bad the economic fallout will be at this stage, so investors need to be smart, patient and disciplined on their risk/ reward outcomes.
Should investors avoid global investments? Developed countries with important economies like the US, UK, and Europe are in a mess health-wise, and economically, so the general answer is yes. While these developed countries are in recession avoid global investment funds or indexes that are exposed to all markets. However, there are some outstanding international companies that have already adjusted their business models and moved through the pandemic very well. I can’t be specific here, but
What is the likely fall-out from COVID-19 Well from a health perspective I am not qualified to comment, but I can say from an economic perspective the fallout is uncertain, and varies from country to country. From my 30 plus years of experience in investment markets and advice I feel that in Australia we have handled the situation very well, and that our Prime Minister and his advisers should be congratulated. However, it was interesting
Global share market bonanza The US share market closed the 2019 calendar year having posted their best annual performance since 2013. The gains have mainly been driven by the big technology companies such as Apple and Microsoft that have led the decade-long bull market run. The year finished very differently to how it started, as the Australian share market and global share markets fell heavily during the December 2018 quarter on worries about slowing economic