The Inside Word#4 - With Zac Lauder, AKA The True Blue Investor
Hear from Zac, The True Blue Investor + What's Going On With China & How Nick Scali Doubled Their Profit!
August 7th, 2021.
In my fourth instalment of The Inside Word, I had an awesome virtual chat with Zac Lauder, AKA The True Blue Investor.
Zac, the creator of TBI, is a young bloke from the Gold Coast, Australia. For as long as he can remember, he's had a mind that's all over the place like a mad dog's breakfast, always wanting to learn and try new things. So in his early 20’s, while working in construction and mining, he went down the rabbit-hole of finance & stock market investing….. and he's been diggin’ deeper ever since!
In this interview, Zac shares some of the great insights he’s taken from all of that digging!
Keep reading via the link below ⬇️
#From Around The Web
Ray Dalio: On Understanding China’s Recent Moves in Its Capital Markets
A number of Chinese tech, and education companies have come under regulatory scrutiny from the Chinese Government, triggering a wider sell down of Chinese stocks. The Chinese Government have even gone to the extent of banning certain education companies from turning a profit.
The impact of the regulatory crackdown on share prices is evident in the recent performance of Betashares Asia Technology Tigers ETF. Over the last six months, ASX:ASIA has dropped by over 22%. ASIA tracks non-Japanese Asian tech companies, the vast majority of which are listed in China.
So if you own any Asian based ETFs that exclude Japan like VAE or ASIA, should be concerned about this latest spout of volatility? Or is it just a blip in the radar?
This article from Co-Cheif Investment officer of Brigdgewater Associates, Ray Dalio, who is widely considered one of the worlds best investors gives his two cents on the situation. He also provides his thoughts on how investors should consider their allocation towards China moving forward.
Nick Scali Double Profit In FY21
If you've ever been in the market for a couch, or any piece of furniture for that matter, you've heard of Nick Scali.
Not only are Nick Scali one of the best at providing furniture, but they're also one of the best businesses on the ASX, in my opinion anyway. They're founder-led, consistently cash-flow positive, grown incrementally and haven't raised capital since they listed in 2004. And that's just the tip of the iceberg.
Once again Nick Scali validated my thinking after reporting an impressive FY21 result. Here are the headline numbers. Full-year revenue $373.0m, up 42%Pre-tax profit $121.2m, up 101.5%Net profit $84.2m, up 100%What's really cool about Nick Scali is that they carry barely any inventory. Instead of holding copious amounts of stock, everything apart from their showroom pieces are made to order. Meaning they're only ordering stock that's already been paid for.
That said, no company exists without any troubles, and Nick Scali is no exception. Rising global shipping costs and strained supply chains have become a growing concern for management.
This AFR article dissects the result in more detail with some broader commentary on the state of play in Aussie retail.
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