Category: Insights & Strategy
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Portfolio Risk and Diversification
The author, Anton Crabbe, discusses his preference for rules-based investing and active portfolio management, showcasing the superior performance of the actively managed ASX 300 Portfolio (up 22%) versus the ASX Concentrated Portfolio (up 12%). The concentration risk and stock weightings illustrate how performance can swing negatively due to underperforming stocks.
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BKW and SOL Merger: A Strategic Acquisition Overview
The merger between Brickworks and Soul Pattinson is largely a takeover by SOL, with shareholders receiving 72% of the new company, TopCo. Valued at $14 billion, the deal benefits BKW by relieving debt and ensuring focused management. The market reacts positively, suggesting potential value enhancement for both companies.
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High Levels of Debt Have Never Been Good for Investors!
By Anton Crabbe 24th May 2025 I am always surprised when I see market reactions to high debt levels and credit downgrades, as we have seen recently with US long-term bond yields touching 5%, their credit rating being downgraded. Also, credit rating agencies have indicated that Australia’s and some state government credit ratings (mainly Victoria)…
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Does Gold Stock Diversification Reduce Portfolio Volatility?
The analysis by Anton Crabbe explores the impact of holding gold stocks in a portfolio over nearly 10 years. It contrasts the performance of two gold stocks, Newcrest Mining and Evolution Mining, revealing that investments in Evolution performed significantly better. Crabbe advocates for a diversified approach to manage risk and enhance capital growth.
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What Drives the Share Market?
The ASX market is highly concentrated, with the top 10 stocks representing 47% of market capitalization and 59% of profits. As a fundamentally driven investor, the author notes the importance of forward earnings in stock valuation and predicts no major market crash unless top companies’ profits are severely impacted.
Rational Share Investing With Ratios 