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Illustrating Investing in the Small Cap Cycle

I have drawn this rather crude illustration of what some call the “small cap cycle”. The Y-axis of profit stands for the growing profits of the business as well as the increasing investment returns over time (as, in the long-term, … Continue reading

How Does Acquisitive Growth Work?

Due to consolidation accounting (or “Group accounting”) rules, when one company controls another one (from 50% + 1 vote up to full-control of 100%, depending on circumstances), that first company (or the “parent” company) gets to accounting for both the financial … Continue reading

No Forecasts for 2017 Found Here!

At this time of year, I normally put together a nice little article with some broad strokes about what I think the year ahead will hold. The rise of Populism and the potential proliferation of Black Swan events leads me to … Continue reading

The Communism of Capital

Economically, politically and technologically, we are all in uncharted territory. The pool of “known unknowns” and what I suspect are “unknown unknowns” is wide, deep and vast. And then we get Japan. For some background to Japan’s current economy, read this … Continue reading

Consolidated Infrastructure Group: Still Quality & Growth for Value

If you haven’t already (or just want a reminder), I strongly suggest that you read my original investment case for Consolidated Infrastructure Group (CIL) over here. In summary, while details have moved around and time has passed, the major thrust of … Continue reading

Warning Signs: Retailers, Shopping Centres & Retail REITs (Part 2 of 2)

See ‘Part 1’ of this series here. There are three harmonious parts to a Real Estate Investment Trust (REIT): Income: These are predominantly rentals from tenant renting space from the REIT. The lower the vacancy rate and the faster rentals … Continue reading