“Out of Africa — Cementing a 14.6% Yield” is my very first Double Digit Dividends Special Report.
The recommendation can be located here.
It is not your typical 100-page investment bank report with a 10-year projected discounted cash flow.
I used to work at Lehman Brothers’ Hong Kong and Tokyo offices for 5 years. One of the mandates I had was to help build their Asia-Japan equity research department.
My eyes used to glaze over reading and trying to decipher the rationale for, not only Lehman’s but most “sell-side” investment banks’ investment research, simply because they were too intricate to the point their overarching message got lost in the detail.
I am from the school of thought which says if you can’t sell your story in a few pages, you have little hope of doing it in 100 pages. Projecting cash flows to build sophisticated models for valuations over a 10-year period was, in my mind, of little value.
We usually do not know what would happen over the next 12 months, let alone 10 years. The discounting mechanism in the low interest rate environment we work in today also makes such financial modelling flawed.
My investment reports and recommendations will typically be 10 pages or less. They are written in plain English and hopefully not too dry in tone. To use Australian vernacular (and as I am Australian and love my BBQs), if the smell and the sizzle of my plain speaking and thinking research cannot convince you, you will never bite the sausage!
I am aiming at one investment research idea a month. Some months I might not have one. Other months I may have more than one. Good investment ideas don’t surface on a regular schedule.
A month between recommendations gives me not only the time to find and research the companies, but it also gives me time to take a personal stake. Again, and with reference to the mandate, I eat my own cooking!!