Erik Metanomski Quotes
101 Erik Metanomski Quotes
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[In March 2004 on being asked what Warren Buffett would invest in if he was Australian and could only invest in Australia.] If Warren Buffett was Australian and could invest only in Australia, he would be 100 percent in cash.
Erik Metanomski
The number of companies out there of really good quality is pretty finite. I start off by looking at a company’s financials to see if they’ve met our prerequisites and most get discarded into the bin pretty quickly.
Erik Metanomski
[In January 2012] What we do see out there are a lot of value traps, such as in the retail, media, manufacturing and banking sectors.
Erik Metanomski
Eventually what is overvalued will correct, on that history is unequivocally clear.
Erik Metanomski
I think there is a difference between the big banks’ true profitability and the profitability they are reporting.
Erik Metanomski
[In January 2012] I expect commodity prices will come under significant pressure over the next few years due to global deleveraging, a shortage of credit and the difficulty miners will face in funding big projects. A lot more supply is coming on stream following the commodity boom, so we expect the earnings of mining companies to be challenged.
Erik Metanomski
[In January 2012] There are empty cities all over China, under utilised cities all over China, underutilised airports and trains, and they are still building. This investment can’t be sustained over a long period of time.
Erik Metanomski
[On opportunities] If there is one thing I have to stress, it’s the ability to say no. We say no an enormous amount.
Erik Metanomski
[In May 2012] It concerns me that the superannuants and retirees of this country have the lion’s share of their wealth in commodity stocks and the finance sector.
Erik Metanomski
We firmly believe that in the absence of sufficient suitable and compelling investment candidates that cash then becomes the default and sensible alternative.
Erik Metanomski
[In July 2012] It’s patently ridiculous to suggest that China can continue to grow at these rates.
Erik Metanomski
[In January 2013] It follows that any further reduction in interest rates may intensify the already frenetic obsession with chasing yield in order to maintain incomes and real rates of return. While this would be a totally understandable response, it brings with it the danger of paying too much for certain assets which may not end up producing the certainty or consistency of income that investors assume to be a given.
Erik Metanomski
[In January 2013] History abounds in horror stories of severe capital loss associated with periods characterised by income obsession. So while the chase for yield is likely to continue in the near term and could be quite bullish for the local sharemarket, this also needs to be tempered by an awareness of the highly unstable and potentially damaging characteristics still very apparent throughout the Western and developing world.
Erik Metanomski
Most importantly, the price at which an individual security can be purchased relative to our appraised value.
Erik Metanomski
[In July 2013] In the current policy enhanced and managed market environment, we feel an opportunistic, value oriented approach will continue to deliver the best returns.
Erik Metanomski
[In July 2013] The desperate reach for yield is causing some severe pricing distortion in areas of the Australian market. As an example, the Australian banks all look extremely overvalued to us. We see banks in the current environment as low growth entities which have artificially fudged their probability over the past three years by progressively lowering provisioning levels.
Erik Metanomski
[In July 2013] Often… bargains have been found either when a company is flying under the radar of the broader investment community, when a company hits a period of temporary distress, or has a forced or highly motivated seller. When the selling pressure subsides, we have been well rewarded for the risks we have assumed.
Erik Metanomski
[In July 2013] We always try to learn from our mistakes, accept them and move on.
Erik Metanomski
[In July 2013] Sometimes our obsessive focus on risk avoidance, risk management and ultimately capital preservation has resulted in missed opportunity, but on balance this has worked in our favour.
Erik Metanomski
[In July 2013] There are some first-class value investors who mostly operate overseas in foreign markets. Some of these investors are absolute experts in the value investing field, work incredibly hard and have extreme levels of discipline. At reasonably regular intervals, we take the time to understand what they are doing with their portfolios.
Erik Metanomski
How little attention people pay to fundamentals…
Erik Metanomski
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