In this interview with InvestSMART Karl discusses the Cadence approach of only buying a stock that is fundamentally cheap and technically strong. Known for its scale-in, scale-out strategy, Cadence enters portfolio positions incrementally.
In this interview with Sky News Business Karl discusses the withdrawal of the major banks from areas seen as higher risk lending, for example ‘non-conforming loans’, in the wake of increased regulation from APRA and Basel. As well as the scrutiny from the Royal Commission and the significant opportunities this has created for smaller financiers […]
In this episode of Buy Hold Sell Karl discusses his views on CSL Limited (ASX:CSL), Macquarie Group (ASX:MQG), Transurban (ASX:TCL), Sydney Airport (ASX:SYD) and REA Group (ASX:REA). Good quality is obvious when you see it: Swiss watches… Italian shoes… Australian reality TV… However, the mark of quality usually comes with a price tag to match. […]
In this episode of Buy Hold Sell Karl discusses his views on Banks. When one door closes, another one opens. And so it is with APRA’s regulatory changes. While it’s a headwind for banks, lending to small players is now an opportunity for a group of nimble, emerging lenders such as Homeloans (HOM) and Money3 […]
In this episode of Buy Hold Sell Karl discusses his views on Retail Food Group and Domino’s Pizza, both of which have given investors severe indigestion over the last 12 months. Tune in to hear why drones dropping pizza in your mouth may not be worth a PE of 65 times.
Every discussion on the mining services sector should start with the concept that commodity prices go up and down based on demand and supply, and resource company profits go up or down. So, too, do those of mining services companies. Put another way, resource company profits are a derivative and more extreme version of commodity […]
Back in November 2012, we told shareholders at our AGM that we had started scaling into MQG at $24 after it hit a low around $17. The audience started laughing! Last week we held our 2017 AGM and the share price was nudging $100. Today MQG finally broke through $100. Back in 2012, the share […]
A 2017 report by market research firm New World Wealth concluded that a record 82,000 millionaires moved to a new country in 2016, up 26% from 62,000 in 2015. The estimate is that approximately 100,000 millionaires will move country each year by 2018. A millionaire in this report is defined as those having at least […]
Below is a chart we presented at our most recent Annual General Meeting depicting the S&P/ASX 200 Resources Index over a sixteen-year period. Within this extended period, we see a resource ‘boom’, the Global Financial Crisis and subsequently the resources ‘bust’. This chart depicts the truly cyclical nature of resources and the large demand supply […]
In this article series by Karl Siegling, Cadence Capital Limited Managing Director and Portfolio Manager, we discuss several aspects of the investment process and how it actually works in practice. The articles cover topics like market psychology and fundamental analysis, and they aim to provide the reader with a first-hand view of how financial theory stacks […]
China Hustle is another fascinating documentary from Netflix which deals with Chinese companies ‘reverse listing into US shell companies.’ It is a cautionary tale on the age old saying of ‘buyer beware’ and the forces at work that led to companies being listed on the US Stock Exchange with $150m valuations and no underlying business […]
This documentary featured on Netflix deals with the amazing rise and the amazing fall of Valeant Pharmaceuticals. Once the ‘darling’ of the investment community Valeant has fallen into disrepute with that same investment community. Again we have Bill Ackman, Billionaire hedge fund manager, as a proponent of Valeant Pharmaceuticals with a large long position and Australia’s […]
This book documents a legendary bet in the early 80’s between two successful commodity traders, Richard Dennis and William Eckhardt. The bet was over whether trading could be taught or whether it comes naturally. Richard Dennis was willing to stake his own money on proving that trading could be taught so he set up an […]
The Little Book That Beats The Market was inspired by Greenblatt’s desire to teach his five kids how to make money in the stock market. He thought that if he could do this, it would be a valuable gift that would assist them through life. And so the book is written in a way that […]
Jesse Livermore was famed for making several multimillion-dollar fortunes and losing them during the stock market crashes of 1907 and 1929. The material presented in this book was obtained by Richard D. Wyckoff through exclusive interviews with Jesse Livermore. This is a ‘must read’ investment book in which Jesse Livermore gives his opinion of what […]
The inter-relationship between commodity prices, resource and mining services company profits The mining services cycle Where we are in the cycle? Examples of recent mining services investments: Emeco Holdings (ASX: EHL) Macmahon Holdings (ASX: MAH) Boom Logistics (ASX: BOL) Cadence Capital Limited (ASX: CDM) is one of Australia’s top performing Listed Investment Companies.
Funds management involves a lot of synthesis of information and reading. Over the years we all end up reading many investment books and refer to them from time to time. The team at Cadence has compiled a list of books that have influenced our investment style, or helped provide insight into the investment process. Whilst […]
What you’ll learn: 5 traps in using the P/E ratio 5 traps with using the Dividend Yield Understanding the Price to Earnings Ratio and how to use it to your advantage Examples of financial ratios in action Cadence Capital Limited (ASX: CDM) is one of Australia’s top performing Listed Investment Companies.
What you’ll learn: Why share prices overreact Understand 3 key emotions of investing – Hope, Fear and Greed How the emotions of Hope, Fear and Greed played out during the GFC How to determine what is a fundamentally ‘cheap’ stock and combine that with technical analysis to determine entry points Follow a ‘live’ example using […]
Has the next resources boom started? Are resources gains sustainable? How does the Cadence Capital approach to investing take advantage of this? Two ‘live’ examples of current resource investments – Monadelphous Group Ltd (MND) and Fortescue Metals Group (FMG)