We follow a selection of Australian companies contained in the ASX 300 index and a selection of US companies contained in the S&P 500 index. We seek to identify companies with favourable medium or long term prospects providing either superior growth potential or a beneficial balance of more moderate growth and attractive yield.
A selected company has to meet our quantitative and qualitative fundamental selection criteria. In addition the technical outlook has to be such that a near term price advance sustainable over at least the medium term is likely. We use both fundamental and technical analysis to confirm each other to have the highest chance of investment success. We have strict criteria to liquidate a losing position, add to winning positions and take medium to longer term profits. We explain our approach in more detail in our free e-book.
Most Australian investors have insufficient exposure to global equity markets and as such we encourage increased investment in quality US companies with global operations. In this way we benefit from the reliable disclosure regime of the US markets and its supervisory competence. We can rely on the disclosed information to a much larger degree as in less developed markets such as China. Investing in US listed globally operating companies will thus give us efficient access to the emerging middle class in Asia where most of global GDP growth is expected.
We have between 10 - 20 Australian and 10 – 20 US shares on our scorecard that we follow in depth allowing a sufficiently diversified portfolio.
We issue new recommendations and follow previous recommendations in our weekly blog accessible for our clients via our website. A weekly updated downloadable spreadsheet keeps track of all our recommendations and their performance relative to their benchmark.
We also follow the constituents of the ASX 100 and the S&P 100 from a technical perspective. We provide a buy rating for a share if it is currently at attractive price levels with a high probability of price advance in the near future. We avoid shares in a clear downtrend or in a trading range. We seek to select shares with clear upward price action having the highest probability in outperforming the benchmark. Our ratings are updated weekly and are downloadable from the website. Additions or removals from our preferred list are advised by ad-hoc email between weekly updates.
"We seek to identify companies with favourable medium or long term prospects providing either superior growth potential or a beneficial balance of more moderate growth and attractive yield"