Tag Archives | company management

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Why dividend yields in Australia are so high

Australian companies have a long and frustrating history of wasting billions of dollars of capital on overseas dreams, and institutional investors should be taking a harder line to protect their capital.

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How good a guide is guidance?

The market’s fixation with whether companies are meeting, exceeding, or falling short of quarterly financial targets is inhibiting market efficiency. Investors would do better focussing on long-term prospects.

company visits

Why bother with company visits?

Although companies adhere to a continuous disclosure regime, it’s hard to replace the value of company visits for active managers, who glean insights and understandings that financial reports and ASX statements fail to convey.

returns on capital

Companies crying wolf

The market rewards companies it thinks allocate capital well and similarly punishes those who don’t. It tries to anticipate the future and thus the changes in future returns on capital before they happen.

If the small cap fits, wear it

There are reasons why small cap stocks have a history of long term outperformance, although recently, the preference for defensive large cap yields has dominated.

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