QAV S01E01 — Get Rich Slowly

by | Feb 21, 2019 | Podcast Episodes | 0 comments

Welcome to our new value investing podcast.

My mate Tony is a very suc­cess­ful pri­vate investor. For the last 25 years, his share port­fo­lio has, on aver­age, dou­bled the per­for­mance of the stock mar­ket, every year. On this first episode, Tony tells me his sto­ry — how he went from grow­ing up poor in Bris­bane, to start­ing his invest­ment port­fo­lio, los­ing half of it in the first year, work­ing out the kinks, to becom­ing very, very good at it and get­ting rich — slow­ly.

In future episodes, he’s going to teach me his check­list-based sys­tem for val­ue invest­ing. If you’re not famil­iar with that con­cept, it’s how guys like War­ren Buf­fett invest. Val­ue invest­ing is basi­cal­ly the idea of find­ing high qual­i­ty com­pa­nies with a strong track record of gen­er­at­ing lots of cash, but whose share price is for some rea­son cur­rent­ly under­val­ued. You buy those stocks and wait for the mar­ket to catch up.

PLEASE NOTE: We record­ed a new ver­sion of our get­ting start­ed episodes in ear­ly 2020 and high­ly rec­om­mend you lis­ten to those instead of this episode. We had more prac­tice at telling his sto­ry by then. But we’re leav­ing this one up for his­tor­i­cal inter­est.

Lis­ten Above Or Wher­ev­er You Nor­mal­ly Lis­ten To Pod­casts
Here’s that graph Tony men­tioned that shows how War­ren Buf­fet­t’s net worth has increased over time, demon­strat­ing the pow­er of com­pound growth. (Source)

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Boring Stocks, Bonkers Returns: QAV AU #926

On this week’s show we wrap up the finan­cial year and the num­bers are, frankly, bonkers: the AU mod­el port­fo­lio is up near­ly 29% for the year, the Light port­fo­lios are up near­ly 36% as a group, and the US mod­el is up 44% against a 20% S&P. Tony then does a Pulled Pork on EVZ Lim­it­ed, a small engi­neer­ing fab­ri­ca­tor that has gone from 16 cents to 65 cents in 12 months and just land­ed on the buy list. We also get into the warn­ing signs stack­ing up on Wall Street, from mar­gin loans up 50% to the Bank of Inter­na­tion­al Set­tle­ments call­ing out AI data cen­tre spend­ing as a poten­tial GFC-style melt­down risk.

OIL THAT: QAV AU #925

This week we cov­er the Iran oil sanc­tions waiv­er and what it means for the oil price, plus debrief on sell­ing our oil stocks (Karoon, Viva Ener­gy, Brook­side) ahead of what turned out to be a nasty drop. Tony does a Pulled Pork on ASX-list­ed labour hire and train­ing firm Ash­ley Ser­vices Group (ASH), a thin­ly trad­ed turn­around sto­ry with a strong own­er-founder and a QAV score of 0.24. We also note the pass­ing of Alan Greenspan, the Cred­it Corp / Humm deal falling apart, and end-of-finan­­cial-year port­fo­lio num­bers that have the dum­my port­fo­lio well ahead of the index.

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