Management Shareholding Abuses

A traditional view wants a listed company to have their management as large shareholders. This gives them skin in the game, aligns them to shareholders and incentivizes them to succeed. All perfectly good reasons. But, this did not prevent Steinhoff … Continue reading

Why Momentum Exists in Businesses

A while ago I wrote about how “Good Businesses Tend To Stay Good“. This article is an extension of that thought. Say, for example, that I invent a really great piece of technology. Perhaps it allows people to teleport. Yay! … Continue reading

When Book Value is Rubbish

Firstly, for some academic background to this article read this one: Smoke, Mirrors & Balance Sheets. Now, when is it justified that a stock trades below book value? Well, the answer is simple enough: when book value is overstated. But how … Continue reading

Illustrating Investing in the Small Cap Cycle

I have drawn this rather crude illustration of what some call the “small cap cycle”. The Y-axis of profit stands for the growing profits of the business as well as the increasing investment returns over time (as, in the long-term, … Continue reading

Company Valuation Basics

This article is following on the series that I began posting here: The Four Pillars of Company Fundamentals. This second batch of videos present an overview and the basics of various valuation approaches for stocks. A notable valuation model missing from this … Continue reading

The Four Pillars of Company Fundamentals

The videos below are from a series I ran on a good couple years ago. Sure, I could probably do a slightly better job presenting some of these topics nowadays and/or modernize one or two examples, but the essence … Continue reading

JSE Power Hour: Start-to-End Investing in Small Caps

Last night I gave a presentation at the JSE about investing in small caps. The idea was almost to present a turnkey solution to investing in this part of the stock market. For this reason, the presentation starts very basically … Continue reading

Generating Investment Returns in Sideways Markets

Since about mid-2013/14, the JSE All Share Index (as with most global equity markets), has neither been in a bear market nor a bull market. Rather, it has been in a flat, range bound market, or, as I prefer to … Continue reading