The Intelligent Investor


Intelligent Investor

Finally, proof we are in a property bubble

Today, the affordable new housing in Canberra is defined as a "unit".

Every bubble has its naysayers and disbelievers. Usually, no one pays them much attention, at least not until the bubble bursts and the media are casting around for someone to explain what the hell just happened.


Flawed model is Metcash’s Achilles heel

Metcash's IGA is fighting a price battle with giants.

John Addis   Shares in the grocery wholesaler slumped last week. Unfortunately, the pain is only just beginning.

Tough road ahead for Cochlear

Cochlear chief executive Chris Roberts is stepping down and will be succeed by Chris Smith.

Graham Witcomb   After 12 years at the helm, Cochlear chief executive Dr. Chris Roberts has announced he will leave the company in August.


What to do with South32?

The money lavished on BHP's  iron ore, petroleum and copper assets wasn't spent on the small and maligned collection of mines that constitute South32.

Gaurav Sodhi   The media may have already dubbed it a failure but, make no mistake, a giant has been born.


The real budget winners

A portion of wealthy pensioners are laughing all the way to the bank as nothing is done about burgeoning superannuation and capital gains burdens on taxpayers.

John Addis   Despite declaring the need for emergency action, Treasurer Joe Hockey did not stem the flow of government funds to rich retirees.


Recession-proofing your portfolio

Deflation doesn't just impact on the economy.

John Addis   John Kenneth Galbraith famously said that there are two types of forecasters; those who don't know, and those who don't know they don't know.

Intelligent Investor

Where Woolworths went wrong

If Woolies isn't prepared to cut margins, it seems unlikely that fixing the wheels on a wayward trolley will.

James Carlisle   Woolworths wants investors to know that it's a 'strong business with lots of potential', but repetition is not proof of belief.


Finding the advantage in outpacing competition

A brand does not necessarily confer a competitive advantage but  economies of scale often do.

Gaurav Sodhi   How can investors best pick companies which have the deepest 'economic moat'?

Intelligent Investor

Woolworths finally gets incentives right

Morgan Stanley cut its 2015 underlying net profit forecast for Woolies by 0.4 per cent.

John Addis   Former corporate employees' critiques of their replacements need to be carefully interrogated.


Six signs of a successful acquisition

Not all mergers are successful.

Nathan Bell   Be wary when it comes to takeovers - unless there are excellent strategic and financial reasons why two plus two will equal five.

Intelligent Investor

Why you should avoid the MYOB float

MYOB's traditional desktop accounting software business has declined.

Nathan Bell   Bain Capital is ready to sell MYOB back to the public at a price almost twice what it paid.

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Sweet lessons from Nutella

The taste and ease of use of Nutella have made it an international hit.

Gaurav Sodhi   Michele Ferrero ran his hugely successful business by following the maxim of doing something different and sticking at it.


Six ways for a girl to get started in investing

It's important to get your children to learn about the value of saving and investing, without scaring them off.

John Addis   It's never too early to begin and these tips should help get the ball rolling.

Stocks at risk of a dividend cut

Of the top 20 stocks by market capitalisation, Intelligent Investor Share Advisor analysts said they were 'alarmed' by two and placed six in the 'worried' group.

John Addis   Investors aren't the only ones to succumb to the lure of higher dividends. Plenty of management teams have, too.


Your bear market survival guide


Nathan Bell   The best time to plan for a bear market is when things are going well, as they are now.

The bank stock you should be buying

CSC execs have been meeting local customers to calm fears of an association with the bribery scandal embroiling Commonwealth Bank of Australia's technology operations.

John Addis   Recessions tend to wreak horrible damage on bank share prices. But because we haven’t had one for so long many investors have forgotten that fact.


Win from the inside track

In the know: Companies with inside ownership significantly outperform the market.

Nathan Bell   Insiders have more information about a company's prospects than outsiders.

Too late to climb aboard Qantas?

Qantas shares have soared ... for now.

John Addis   There are two things to remember as you look wistfully at the potential 300 per cent Qantas' shares gain you missed.

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RBA's hands tied as property prices go through the roof

The Australian housing market is in the grip of an irrational exuberance.

John Addis   If a recession does trigger a property-price crash, it won't be Glenn Stevens' fault.

Is G8 Education the market’s best sell?

G8 Education managing director Chris Scott.

Nathan Bell   When you look at the signs, they're saying it might be time to sell G8 Education, says Intelligent Investor's Nathan Bell.


Don't follow the herd - opposite direction could pay off

Following the herd and your herd-driven broker might not bring you the best returns.

Nathan Bell   Research finds that swimming against the tide can be rewarding.


Hidden dangers in the mad dash to better yield

You have a goal, but you could be heading for a tumble.

Nathan Bell   Beware of investing in companies that raise dividends - their share price may rise but they may not be making any more money.

Winners and losers of the 2015 reporting season

drowning in paperwork

John Addis   It’s been a busy reporting season so far, with some big stock prices moves. To find the biggest of the past 30 days we combed through the ASX 300, removing all the resources stocks


Telstra’s dividend reinvestment plan is lazy investing

To DRP or not to DRP?: Telstra is reactivating its dividend reinvestment plan.

Nathan Bell   Telstra shareholders can now compound their stocks in the company, but at what price?


Wrong thinking on Commonwealth Bank investment

As Fairfax reported last week in "Should you sell CBA shares?", just two of 14 analysts tracked by Bloomberg rate the stock a "sell".

Nathan Bell   Unlike Shane Watson, Commonwealth Bank appears set to soon crack a ton.

Intelligent investor

Why you should avoid ANZ Notes 3


Nathan Bell   When a banker offers you a hybrid security and a 124-page prospectus, hold on to your wallet.

Intelligent Investor

Three ways banks are killing competition

Australia's banks are highly skilled at defending their interests.

John Addis   The ASX’s mFund gives a small but revealing insight into how banks stifle competition.

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Making money from debt

Debt collectors are estimated to handle more than $15 billion in unpaid debts this year.

Nathan Bell   Credit card debt has doubled in the last 10 years. It now stands at $50 billion, the equivalent of $3,200 per cardholder.

Intelligent Investor

Too much, too late: Have Australian banks missed the boat on China?

Nathan Bell   The Australian banking sector could have tens of billions of dollars stuck under the pillows of China's shadow banks.