The Shifting Sands Of Banking

Banking, an industry that has changed very little over hundreds of years, is now being gripped by a tsunami of technological change. At a recent industry conference, banking executives laid out their plans for how to deal with this shifting landscape, as well as provided insights into the current state of play for banks in the U.S. and globally.

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7 Million Reasons To Protect The Downside

We talk a lot about downside protection at Montgomery Global. Intuitively it seems like a very good thing. Who on earth ever wanted their money to take nose-dive? (Answer: nobody). But the idea of reducing downside risk immediately raises some questions, like: what’s the value of protecting the downside? Or, what do I have to give up to insure against the downside? And of course, how do I go about putting downside protection in place?

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Is Now The Time To Invest In Global Equities?

Today, we ask the question: is now the time in invest in global equities? This is a fair question to ask. The current bull market is one of the longest on record; and there are a number of risks out there on the horizon, such as: (i) the normalisation of monetary policies – particularly in the US; and (ii) the increasingly rocky relationship between the US and China.

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Punch Card Investing

Investing successfully is not easy. Among other qualities, it requires incredible discipline and patience. After all, the greatest rewards come when you wait for the right opportunities with huge upside, and then swing big. It’s the approach preached by Warren Buffett and favoured by us at Montgomery Global.

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Is Loan Book Growth Stabilising?

The statistical release of APRA and the RBA’s credit growth data for April shows a stabilisation in the rate of overall mortgage, personal and business loan book growth at 5 per cent across the overall Australian market. By category, mortgage book growth continued to slow, increasing 6 per cent year over year, while business loan book growth improved a little to 4.4 per cent.

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Thank Cheap Money For All The Tech

There can be virtually no doubt that we are in a golden age of technological advances that promise to change the world. From 3D printers churning out both metal objects and human organs, to digital advertising targeting customers based on their moods, and from electric vehicles promising to clean up the atmosphere to the self-described “sharing” economy putting power back in the hands of ‘the people’ (but not holiday-pay or superannuation in the hands of its workers), the technology revolution we are witnessing, and its pace, marks a point in history many of our parents and grandparents could not have imagined.

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Thinking About An Autonomous Future

Autonomous vehicles and the evolution of Transport as a Service (TaaS) are topics that we have spent a significant amount of time thinking (and writing) about in the past year or so. We see these developments as having a profound impact in many industries and have begun to remove from our portfolios businesses that we see as being on the wrong side of them.

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What Kind Of Investor Are You?

One of the features of active equity investing is its zero-sum nature (in aggregate). By that, I mean that when an investor “beats” the market, some other investor must get beaten. Averages being what they are, there needs to be an equal representation of investors who deliver above average performance and investors who deliver below average performance.

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If Content Is King, Where Does Spotify Stand?

Spotify, one of the world’s largest paid music streaming platforms, recently listed on the NYSE under the ticker SPOT at a valuation of $26 billion. The company, along with a handful of its competitors, are often credited with reviving the fortunes of the music industry by creating platforms on which consumers can digitally, and legally, consume music. But in a long-suffering industry where content is still king, does being the saviour make Spotify a good investment?

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Do You Have The Patience To Buy And Hold?

One of the most common investment adages one hears is that “time in the market beats timing the market,” particularly when it comes to passive index investing. This advice is predicated on buying and holding – over a long period of time, the vicissitudes of the market wash out, and therefore you don’t have to worry about the initial price you pay for an index as historically, equities have always gone up over time.

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51job: A Job Well Done

51job (Nasdaq: JOBS), the Chinese online job listing platform, is a company that has been in the global fund portfolios for some time now. The company is executing well on its strategy to build out the premier online jobs platform in China, with recent price increases being the highlight of the company’s recently reported Q1 earnings.

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