Investing – What Matters

Much of investing is about common sense.

It is the consistent and disciplined application of the principles that sets a good investor apart.

You might have heard us talk about seeking out “out-of-favour” stocks and eschewing what the market considers “fashionable”. You might have read about the “divergence between a company’s intrinsic value and its share price”. But what does all this mean? And how is it put into practice?

<p>It is the consistent and disciplined application of the principles that sets a good investor apart.</p>

<p>You might have heard us talk about seeking out “out-of-favour” stocks and eschewing what the market considers “fashionable”. You might have read about the “divergence between a company’s intrinsic value and its share price”. But what does all this mean? And how is it put into practice?</p>

Mistaken Equation

A good company doesn’t necessarily make a good investment.

It’s all about the price you pay.

Dollar Cost Averaging

Shoes that don’t fit are never a bargain, not even at a sale.

Do you really want to top up a holding just because the share price is down?

Random Moves

The underlying value of businesses changes slowly, yet share prices gyrate daily.

This apparent contradiction results from the undue weighting of recent events.

Fashion Victims

Life without fashion would be rather dull.

The share market merrily embraces fashion too, but it’s cruelly fickle. Following the latest fad often proves lethal.

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For more behavioural insights and words of investment wisdom, request a free copy of the booklet.

More on Investing – What Matters

Interview with Kerr Neilson

Below is a transcript of a recent interview Kerr Neilson, founder of Platinum Asset Management, conducted with Mark Draper from GEM Capital.  Kerr answers questions about his long-standing career in funds management and what he has learnt along the way.

A Crash Course in Investment Management

Douglas Isles, Investment Specialist, gave a talk to staff, students and their families at the Department of Accounting, Finance and Economics at Griffith University, Queensland, Australia on 3 May 2018.

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Why Indices Lead Investors Astray

Using a real-life case study, Andrew Clifford, Platinum's CIO, presents on the essence of true value investing at the Portfolio Construction Forum in Sydney in August 2017.

Facts, Feelings and the Importance of Composition

When investing, how often do you check whether your “feelings” are backed by facts? And does the strength of your conviction in a stock hold up against the weight of the evidence?

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Investing - What Matters!

After years of great domestic returns, Australian investors should surely now be asking have things changed and whether they have enough foreign share exposure.

Property investing is all about your time horizon

Kerr Neilson delves into the ins-and-outs and pros-and-cons of investing in real estate, and sheds light on why a well-managed share portfolio is quite as attractive as property.

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Platinum's DNA

CEO Kerr Neilson explains how Platinum seeks to grow clients’ wealth by applying, with discipline, a contrarian approach that emphasises logic and method while avoiding emotions and herding.

Platinum’s Approach

Platinum is a specialist international equities manager, with an excellent track record. The fund manager adds value by investing in companies that are out-of-favour, described as “seeking neglect”, and by employing risk management strategies, particularly short selling and foreign...

Echoes of Neglect?: A Playbook For All Time

It is often said that history does not repeat, but it does rhyme. Investment specialist, Douglas Isles, reflects on some of the key messages from Platinum’s quarterly reports written in the 1994-1999 period, many of which are remarkably pertinent today.

A Short Framework For Investing Your Own Money

CEO Kerr Neilson outlines a basic framework and three key lessons for investing in the stock market.

Why Valuation Matters!

With shares having lost investors money over the last five years (and even 10 years depending on the market), together with the apparent dire state of the world economy today, many investors are asking “why should they invest in the stock market?”

Possible Futures and Keeping Faith With Stocks

"Two articles, kindly supplied through Credit Suisse, emphasise the returns that equities, bonds and cash have offered over the last 108 years!"

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