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Best Aussie companies - your favourite?

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barrett

barrett

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Well it looks like this bear market will offer the chance to make a fortune buying the best companies on the cheap, as Warren Buffett and other Ben Graham students did in bear markets of the past. First step is deciding which companies are worth really learning about and following. As Buffett's mentor Phil Fisher said, the key is to buy quality on the cheap. And at long last, quality is becoming affordable.

Here's my question: all things considered, but mainly management, and strong record of increasing cash flow: what is your favourite top quality Australian-listed company (of any size), and why?
 
I don't hold any but if I had the money, my pick would be WBC (Westpac)

Great management, minimal exposure to sub prime and Merryl and best performing bank stock so far.
 
I love WOW
Absolutely stunning company under the leadership of Corbett.
He's a man to be admired, he no longer run the show but I'm sure
he has some input into WOW here and there.

What's good about WOW?
* top class management
* a good work culture
* excellent allocator of their capital ..ie they buy business that add values and not over pay.

and I shopped mainly at WOW :)

Suncorp (SUN)
Doing crab lately since the Promina merger due to a number of factors
* Storm in QLD last year.
* Higher credit cost
* Bear Market

What's good about SUN?
Excellent management.
Return on equity is up there with the big banks except lately since the merger with Promina.

I remember CBA went through a rough time when they buy Colonial as well
their share plummet a bit so I'm willing to let history repeat itself for me with Suncorp :D and give Suncorp 3-5 years to get it right.
 
Go Nuke said:
I don't hold any but if I had the money, my pick would be WBC (Westpac)

Great management, minimal exposure to sub prime and Merryl and best performing bank stock so far.
Click to expand...

yes WBC learn their lesson with the 80's and are very conservative that why they dont fall into the trap of CDO and alike.

the 80 teach them a lesson that nearly crack their back and I dont think they want to go down that road again.. it's very very painful
 
It's a good question but one that needs lots of clarification.....your reference to quality seems to indicate 'growth companies' which I would agree with......

You seem to want our favourite company based on past performance, not so much future prospects.....unfortunately, these are not always the same

On this note, it's quite an objective question with something like Westfield or should I say the former Westfield holdings (not the trust) being arguably the greatest stock in the history of the ASX....My personal favourite is fantastic furniture, no where near the pedigree, but a personal favourite

On the future prospects, that's much tougher........I continue to very much like Tassal Salmon......they have growth projections out to 2015 and beyond and they are serious about it......for me, it breaks a few of my rules but it is a compelling story of growth coupled with ruthless cost cutting......

This is not advice, just stock drivel.........
 
barrett said:
Well it looks like this bear market will offer the chance to make a fortune buying the best companies on the cheap, as Warren Buffett and other Ben Graham students did in bear markets of the past. First step is deciding which companies are worth really learning about and following. As Buffett's mentor Phil Fisher said, the key is to buy quality on the cheap. And at long last, quality is becoming affordable.

Here's my question: all things considered, but mainly management, and strong record of increasing cash flow: what is your favourite top quality Australian-listed company (of any size), and why?
Click to expand...

Hm i still like the coalies but besides them maybe soem biotechs like:

CSL - Earnings and Dividends Forecast (cents per share)
2008 2009 2010 2011
EPS 126.8 156.7 196.2 229.1
DPS 46.0 55.5 68.0 79.0

COH - Earnings and Dividends Forecast (cents per share)
2008 2009 2010 2011
EPS 206.6 237.1 282.3 330.6
DPS 150.0 165.0 194.0 231.5

RMD - Earnings and Dividends Forecast (cents per share)
2008 2009 2010 2011
EPS 14.8 22.1 26.1 30.5
DPS 0.0 0.0 0.0 0.0

thx

MS
 
I reckon that APA probably has the best management, not sure if their cash flow is increasing 'cause I haven't looked for a while but dividends were up, so I assume so.
 
Favourite isn't the same as best.

In six months, we've seen BNB go from 12.60 to 0.73; NAB from 27.80 to 19.20; and MQG go from 45.00 to 27.09. All of these might have been someone's favourite six months ago.

"Favourite" to me means a company with stable and reliable management, with a vision for the future and a strategy to get there, that's in a growth or essential sector, and that market volatility aside, would be expected to power on in the future.

Thin on the ground I know, but I like the two "Q's" at tthe moment, in different sectors QBE and QGC.
 
Best value oversold and underpriced small cap is ABY.
Valuations seem to be around the $2.40 area.

My :2twocents
 
Thanks guys for all the replies, some really good companies mentioned here which I either agree with or will follow up on..

My favourite company is a mid cap called Austal (ASB). for those not familiar, it's a WA-based company that has grown to become the world's leading designer and manufacturer of high speed passenger ferries. What I like about them:

- Top notch management - John Rothwell, in the process of handing over to Bob Browning - Rothwell built ASB from the ground up. He's consistently delivered on promises, on time and on budget
- Good growth in cash flow over the past 4 years (and before 2003 for many years)
- IP gives competitive advantage - trimaran hull design with high fuel efficiency, stability and speed
- Clear market leader, few competitors
- Ferries operate in dozens of countries around the world - much of the business is repeat orders, now maintenance contracts
- Expanding into US defence market in partnership with General Dynamics
- Recent cash grants from both US Navy and Govt. of Alabama where shipyard is located
- US Navy already use a modified Austal ferry for troop transportation and rave about it - application pending to build more of same;

last but not least the ferries are surprisingly sexy looking!:eek:

Possible risks/developments:
- some uncertainty over future US Navy Littoral Combat Ship orders
- Bob Browning new in the job -but good fit with US expansion
- likely to bid, with General Dynamics, for Australian Submarine Corporation in late 08/early 09

Not without risk but IMO top quality and the good much outweighs the unknown. Have held for 3 years and will buy more if opportunity presents. ASB also an old Fat Prophets stalwart from back when Angus was running the shop.

Incidentally Warren Buffett is on record as saying that he feels certain he could achieve 30-50% gains pa if he was able to buy small and midcap companies (not necessarily ASB, but food for thought)
cheers
 
MGX.
not gunna type a whole lot of jargon as thats not me ( sorry moderators ) will disclose i have a very long term holding and am biased . will say this tho theres research available :) and thats all i suggest ..... meets a few criteriias asked for so there ya go .
avaniceday
 
NMS - Neptune Marine Services. Been following this one closely (although not as close as some :)) for a couple of years now and still have difficulty finding fault with it.

* Smart, driven, communicative and sound management led by Christian Lange.
* A clear growth strategy that has managed to stay on path and deliver thus far
* Cementing itself in an industry that is due to spend over $5 billion over the next 4 or 5 years in Australia alone
* extending it's arm in more overseas locations
* An 'unfair' advantage over its competitors with the patented NEPSYS weld
* Being a service industry, less effected by swings in oil/gas prices

Disclosure: I hold with a 3-5 year plan
 
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