Book Review > Young Guns on the Sharemarket

Author: GREENBLAT, Eli Publisher: John Wiley & Sons Australia ISBN: 9780 7314 06814
Location: Brisbane Price: 29.95 Reviewed by: Megan Gray

Young guns on the Sharemarket presents the investment strategies of 13 successful, young, Australian (under 40) professional investors. There is a snippet of information on the backgrounds of each ‘young gun’ and the unique investment strategies of the ‘young guns’ is comprehensively presented. It is written by Eli Greenblat, a financial journalist of many years standing, who is now writing for the Australian Financial Review. The book is an enjoyable informative read of 234 pages.

.A chapter has been allocated to each of the ‘young guns’ or to a partnership of ‘young guns.’ Tom Elliot of MM and E Capital discusses the profits that can be achieved around corporate activity including mergers, acquisitions and takeovers. He focuses on small to medium capitalisation companies. He has achieved profits in falling and rising markets with this approach.

Roger Montgomery of Clime Asset Management is an adherent a of conservative investment style influenced strongly by Warren Buffett’s approach. He places great importance on return on equity and reviewing several years of a company’s accounts.

Angus Gluskie and Atul Lele, of White Funds Management, take a detailed analytic look at the companies they are interested in. They look for companies with superior future earnings that are likely to benefit from current global and business cycles.

Karl Siegling of Candence Asset Management uses a combination of technical and fundamental analysis plus a series of strict rules. This fund has increased by over 75% in 15 months.

Campbell McComb of Armytage Private specialises in small cap companies that have simple business models and good cash flow.

Peter Constable of MMC Management is a contrarian investor with a focus on small to medium capitalised companies.

Lawrence Gozlan of Scientia Capital has a background in science and finance. He used this experience to set up Scientia Capital. About 90% of biotech companies fail eventually, so great skill is required to achieve the 45% return Scientia Capital accomplished in the 2006-07 year.

Gabriel Radzyminski of Centric Capital invests in listed investment companies. These develop wealth gradually with the added benefit of regular dividend payments.
Sam Baillieu and Dean Fergie of Opis Capital invest in small to medium capitalised companies. This follows extensive research into the company including looking at the management, the business model, the company operating history, industrial structure, financial analysis, corporate structure and major risks.

Michael Norster is a private investor who invests in private equity and the share market.

Peter Wilmshurst of Templeton Global Growth has an international approach which opens up numerous opportunities, as the Australian share market makes up only 2% of the world’s share market.

There is a range of techniques many of which may benefit the private investors. I intend to dip back into this book often and have found it an informative and pleasurable read.

Megan Gray is a member of the AIA.