OUR INVESTMENT STRATEGY

Kodari Securities (KOSEC) implements a top down investment approach. We first analyse the macroeconomics and determine the economic situation globally, the effect they have upon our economy, and to assess which sectors will be outperforming and worth investing in. The health of our economy and the overall world economy, are crucial to making informed and concise investment decisions. Economic indicators such as interest rates, inflation, GDP Growth Rate, Unemployment and the past performance of the equities market, we believe are crucial to forecasting future growth sectors in our own economy. Our nearest neighbours such as China and their economic situation are important in understanding growth and business trends in our economy. With due diligence and extensive research we can cover information and help clients better understand our neighbouring economies and their impact on our markets and their investments.

The next step we take is to look at microeconomics and pick quality businesses that have a consistent track history. We take into account a number of factors in assessing a business. Over 2000 businesses are listed on the Australian stock exchange and less than half are profitable. We aim at identifying the ones that are not only profitable but are consistently outperforming their competitors and have a good model and structure. We dig deeper and look at ratios such as ROE, Cash flow, Assets, Liabilities, Debt/Equity, Earnings to filter only a handful that meet our strict criteria of quality businesses. We then go a step further and assess the intrinsic value of each of these companies and conduct further research on the background and experience of their management team. This is a thorough and concise process that insures risk is minimised, promotes capital preservation and assists you in making a more informed investment decision.