Thematic Investing – Does It Work?

The Investment Perspective – December 2023

Peter Flannery Financial Adviser CFP
 

 

“Neither the investing method nor the fundamentals of the business are right or wrong because the mood of the market is favourable or unfavourable toward the “stock”. That is because when you really think about it, “stocks” (shares) are all about the financials and the trading price, the share price… the cash up value. What matters more is the economics of the business” 

Peter Flannery

Key Points:

  • Thematic investing is practiced widely, but why?
  • Playing the sharemarket is different to investing in the business.
  • The income statement – simply how can we read it?
  • The balance sheet – what can it tell us about the business?
  • The cash flow statement – it is all about free cash flow.
  • Free cash flow is possibly even better than profit.
  • Charlie Munger’s final word for 2023
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Click Here To Read This Month's Investment Perspective - December 2023
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