CURRENT NEWS & INFORMATION

Here we will provide articles of interest and information as well as news about recent and upcoming events. There will also be a recent update and commentary on the various financial markets.

CPB Client Seminar 17th May 2017 Evea Function Centre Melbourne Street North Adelaide

We had 3 speakers this evening, with Peter Kelly & Mark Teale discussing the impacts of the recent Federal Budget and Roger Montgomery providing us with his view of the world and Australian markets.

Peter & Mark addressed the Budget 2017 in relation to Aged Care and impacts for superannuation changes.  We also looked at transitional arrangements for people looking to retire. They also discussed some of the side issues from the Budget, the First Home Saver Super Scheme which looks to allow people to withdraw some components of their superannuation to allow them to get into the housing market. Both speakers were well received with the subject of Aged Care a hot topic for those baby boomers with ageing parents to consider.

Roger Montgomery is a highly regarded analyst and investment commentator who speaks regularly on television and radio and can be seen on the ABC, Sky News Business Channel and Switzer TV. Roger writes for Money magazine, Alan Kohler's Eureka Report, The Australian and The Herald Sun.

He has written a best selling book on value investing titled "Value.able", and established the boutique investment office of Montgomery Investment Management.

 Roger entertained and challenged us with his contrary thinking in relation to markets and investments, particularly with regards to traditional thinking of what represents value in the marketplace. 

He reiterated his philosophy that "We are investors, we are not speculators. We approach the stock market, not as a venue for trading stocks, placing bets on prices moving up or down, but as a venue to purchase small pieces of businesses with the power to grow their worth over time".

Roger spoke of Businesses not being stocks and value not being price.

That long term value accumulation relied on owning premium businesses with bright prospects that are available for a price below their true value. Roger then gave a number of examples of how some businesses fit the preferred model and some do not.  He gave an interesting summation of BHP's capacity to create real additional value compared to the enormity of their investment in terms of capital to do so.  He then went on to look at global GDP, property markets and Australia's fascination for household debt.  Whilst Roger conceded that growth would be a challenge, he provided examples of pockets of companies that had the right mix of quality and excellent prospects to create future value.

All in all an excellent evening with many good comments from clients.

 "Information alone is not knowledge, just as knowledge is not wisdom, nor wisdom good judgement. The enduring value of a financial relationship derives from a professional who possesses not only good information, but the judgement and experience to implement it wisely"