Category: Uncategorized


The objective you hear from many value investors is to buy $1 of assets for 50 cents. The headline I used here is the opposite, what we should be avoiding.

Trading in a couple of wind-up situations I have observed this year has left me scratching my head. It has looked to me like investors paying around $1 for 50 cents of cash!

Continue reading “PAYING $1 FOR 50 CENTS WORTH OF ASSETS?”


Should Australian Leaders Fund Limited (ASX:ALF), Contango Income Generator Ltd (ASX:CIE) & Thorn Group Ltd (ASX:TGA) wind up most of their operations and return cash to shareholders?

For full disclosure I own shares in (ASX:ALF) and (ASX:TGA) at the time of writing. I do NOT own shares in (ASX:CIE).


Guest Post – How to determine if the trend is your friend

This is a guest post that I thought would be of interest to my readers. Please read below to find out more about the author. (Note I have no affiliation with the below author / business).

Continue reading “Guest Post – How to determine if the trend is your friend”


Should I buy the Future Generation Investment Company (ASX:FGX)?

  • I shall later note how the Future Generation Investment Company Ltd (ASX:FGX), can be a cost efficient way in getting exposure to Australia’s best fund managers.
  • The management expense ratio is effectively very close to a maximum of 1%. The fund managers therefore stand a decent chance of outperforming after fees in this vehicle.
  • You can expect a fully franked yield of circa 4% and a steadier ride compared with most equity funds.


Unusual Fees in LICs?

There are now well over 100 ASX LICs. I must have looked reasonably closely at the fee structures of more than half of the current crop and have noticed a couple with unusual structures. I would be interested in the view from others about these features, and also if other LICs follow a similar arrangement? Continue reading “Unusual Fees in LICs?”

How to invest efficiently for tax in Australia.

How to invest for a living

Before you go “all-in” on a portfolio full of the highest franked dividend payers on the ASX, read below to consider being diversified from a political and taxation standpoint. Likewise be wary of going “all-in” to other investments based solely on current taxation incentives in place.

When I come across articles about how Australian investors need more diversification it often does not refer to potentially changing tax laws. There is a bit of overlap with these themes but there are different issues to consider.

Continue reading “How to invest efficiently for tax in Australia.”

What do retail investors want to hear from their fund manager?

This blog post topic came to mind after I read a post from another blogger. The post I refer to discusses whether fund managers are doing a good job communicating their ideas to attract retail investor demand. Continue reading “What do retail investors want to hear from their fund manager?”


How to buy ASX Listed Investment Companies (LICs)

Or not to buy?

Don’t fall for the hype of conflicted advice on ASX LICs IPOs and get hit with commissions

Warning fictional post about an IPO of an ASX Listed Investment Company (LIC). There is so much cheap money around I fear that if I don’t include such a warning, some will think this is real and want me to send them the prospectus! Continue reading “AVOID THIS ASX LIC IPO!”

High profile sectors are surely where I can make a killing in the stock market right?

Before I write much on the markets again, I thought I’d add something different so I don’t get bored of this blogging stuff too quickly. So firstly a warning I will stray off topic for a little bit.

I would have spent about a third of the year in Vietnam this year and am currently writing this from Dalat. Continue reading “High profile sectors are surely where I can make a killing in the stock market right?”

Is technology improving our productivity? Is that where we should invest?

Sometimes personally I feel the answer is no to both.

My digital detox I mentioned in early June had mixed success. I did get away from the smart phone and read some investment books, well via an iPad anyway, that I look forward to discussing more later. Working for myself requires plenty of discipline that I am still learning about and yet to fully master. I have done ok in this aspect but there is much improvement to be had. Continue reading “Is technology improving our productivity? Is that where we should invest?”

Digital detox.

I will likely be inactive here over the next month or two. Will be trying to focus a bit more deeply on investment ideas and some other non investment pursuits.

It will involve perhaps much less watching the ticker tape and news constantly during trading hours and checking all the various media and messaging apps. Will try more reading of annual reports and company presentations, and some more lengthier pieces on the macro environment and possibly some investment  books. Continue reading “Digital detox.”

Watching in May 2016


  • Stops on the DOW shorts at 18,900, AUD/USD short at 79.50, Robusta coffee long at 1274.
  • Shorting is a tough game and I need to be prepared if I am stopped out on the above. Another measure I may deploy to de-risk is more USD exposure should the USD weaken further. The USD should reassert itself as a safe haven currency down the track again. I am weighing up still about the timing and how best to implement this. For the time being already I have increased USD exposure to now a meaningful amount, however some may get at least temporarily stopped out if we go above 79.50 quickly in the short term.
  • The energy sector I believe made a major low this January and if we see dips they can be used as opportunities to buy correlated stocks or equity markets. My optimism in the commodity space does not extend beyond energy, precious metals and softs as more demand sensitive commodities remain vulnerable to global economic demand shocks.
  • I am negative on the U.S. equities markets which lack breadth and many basic fundamental measures point to overvaluation. In particular measures point to a major relative overvaluation compared to other global equities markets.
  • Whilst I advocate being very defensive and cautious with the U.S. equities markets, a portfolio does not necessarily have to have a major overweight in cash burning a hole in your pocket. I hold more cash than one normally does but make the point there are depressed assets that can provide opportunities. For instance, investing in other stock markets, just to name a few suggestions Australia, Singapore, Russia, Vietnam, China, UK, Spain, Italy you are buying at a time where the 5-year performance has been disappointing, unlike with the U.S. major indices. Likewise investing in the energy, precious metals, agriculture sectors.



Volatility gone for now..

Asset Allocation

I have been stopped out on the more defensive positioning of the portfolio when the DOW rose above 17,500. So my cash equivalents are around 31%. For clarification, I call them cash equivalents as some of this may not be strictly cash, rather could be wind up or takeover arbitrage situations that I consider extremely low beta to stock markets and that usually have a more defined date that they will convert to cash. Continue reading “Volatility gone for now..”

Happy 7th year birthday for the bull market.

Period 1st half March 2016, written March 11th

Asset Allocation

The stronger equity markets of late has not been the ideal scenario I was looking for. There is a reasonable chance the short trades I placed on the US indices will get stopped out. Whilst they exist at present my cash equivalents weight is marginally lower at 43%. Some small physical buy trades got filled which I will comment further on below. Continue reading “Happy 7th year birthday for the bull market.”

Reporting season and equities find support

Period 2nd half February 2016, written March 2nd

Asset Allocation

Since the last report a fortnight ago the volatility has somewhat subsided, with equity markets slowly grinding higher. Pretty typical when markets climb. Continue reading “Reporting season and equities find support”