Investor Insights

The Reserve Bank of Australia recently opted to leave interest rates on hold. But with key parts of the economy in decline, it may be just a matter of time before it has to cut again. The question is: how effective will a rate cut be?

Last week the New York Times published an opinion essay penned by Facebook co-founder Chris Hughes, who calls for the breakup of the social media giant.

The topic of the property market is a favourite obsession for many given the significant percentage of household wealth the asset class represents for most Australians.

We’ve known for some time that the sharp decline in building approvals would lead to an equally sharp decline in construction activity. It has been our view that because building approvals have already fallen from 280,000 dwellings to 170,000 dwellings, a consequent decline in building activity would start to be seen about now.

Uber says it is only in the early stages of capturing a $12 trillion total addressable market that includes personal mobility, food delivery, and freight shipping. So, if you believe its prospectus, the potential upside should be huge. But how realistic are its aspirations?

One company that recently caught our attention, that I believe is worth monitoring, is Avita Medical (ASX:AVH). AVH owns the patents and produces a medical device called RECELL, which produces a “suspension” of spray-on skin cells using a small sample of the patient’s own skin to help treat burn patients and skin defects.

Brambles is one of the companies that you’d think would tick quite a few of the quality criteria that we at Montgomery evaluate any potential investment on. Let’s have a look and see! Exclusive Content This is exclusive content to subscribers on rogermontgomery. com. View the full article via your subscription or sign up for access. Continue to RogerMontgomery.

Uber’s upcoming IPO promises to be monumental. The big question for would-be buyers is: will this loss-making juggernaut be a good investment?   Or, like its rival, Lyft, will its shares plummet after the float? Exclusive Content This is exclusive content to subscribers on rogermontgomery. com. View the full article via your subscription or sign up for access.

With Australian retail, housing and car sales in the doldrums, an election likely to cause business nervousness and lack of new investment, (which in turn keeps wage growth low), where can investors find opportunities? Exclusive Content This is exclusive content to subscribers on rogermontgomery. com. View the full article via your subscription or sign up for access.

We are often asked to explain how we manage the cash weighting, and the most recent market pullback at the end of 2018 provides a useful example to illustrate our approach to managing cash. Most readers will be familiar with the investment philosophy that drives The Montgomery Fund.

Over the past few weeks we have had the pleasure of meeting with clients and friends of the firm around Australia and New Zealand. The turbulent and challenging final quarter of last year was of great interest to many, despite, or perhaps because, of the quick rebound in stock markets in the first couple months of this year.

On Wednesday, New Zealand online goods trading and classifieds platform TradeMe will hold an extraordinary general meeting so that shareholders can vote on the proposed acquisition of the company by one of the private equity funds of Apax Partners for NZ$6. 45 per share.