Mainstreet is a proven business with an established client base and new leadership team that is led by Peter Leodaritsis.
Peter has an established record of accomplishment that is underpinned by my more than 29 years in the securities industry, including more than 7 years as a top-rated institutional banking analyst with the Investment Banking arm of Barclays PLC (BZW). Peter was the founder and CEO of Australia’s first truly sizeable Independent Equities Research firm – “Aegis” that grew to become Australia’s largest provider of independent equities research that was sold to Morningstar in 2010 and which currently forms their core equities business in Australasia.
Mainstreet’s core research platform “ShareAnalysis” is a powerful stock research tool that was created using academic research, based on Warren Buffet investment methodology that centres around Intrinsic Value and was built to provide complete coverage for every stock listed on every exchange around the world. Our investment software is fully automated, which ensures its breadth and depth of stock research and analysis is not limited by the physical capacity of a team of analysts. Nor is it influenced by their biases or affected by their errors. The research is independent, unbiased and factual and is presented in beautiful visuals. ShareAnalysis is now widely used by private investors and financial advisers across Australia.
Our automated platform also means that during periods of market inefficiency, such as bi-annual or quarterly reporting seasons when analysts are struggling to keep up with the hundreds of companies reporting each week, investors can rely on modern technology to sift through the updated information quickly and accurately and quickly pounce on new investment opportunities.
Every investor develops methods to narrow down the universe of investment opportunities to a group of just the best stocks. Often, we use rules of thumb. We may eliminate entire markets or sectors based on a premise like ‘I don’t like resource stocks’, or ‘I don’t understand technology businesses.’ Other investors determine their universe based on advice from a tip sheet, share investment software, adviser or other sources.
All these methods for finding stocks to invest in are legitimate, but they are not scientific and are likely to result in a lot of good investment opportunities being overlooked.
Our Solution : ShareAnalysis
ShareAnalysis was built to circumvent this problem. Within 4 or 5 mouse clicks, our members can narrow the entire universe of stocks down to a group of 5 to 20 of the very best stocks to invest in. Our value investors can quickly weed out the rubbish and focus on the few top stocks that meet their personally defined set of sensible and rational criteria.
Instead of digging through mountains of useless fundamental data, more time can be spent understanding those companies that have risen to the top. ShareAnalysis uses a vast array of financial information to analyse a company and then present the findings in an easy-to-digest and visually engaging format. While ShareAnalysis is simple to use and understand, the processes and algorithms employed are anything but simple.
Most importantly, this is not a simple filter that relies purely on historical data. ShareAnalysis looks forward and presents forecast data including forecast intrinsic values – over the next three years. This gives our members a powerful advantage.
The conclusions that ShareAnalysis draws about businesses are presented succinctly, and in such a way that investors can quickly assess the risks associated with a potential investment.
ShareAnalysis uses rated professional analyst forecasts presented as a consensus as an input to calculating intrinsic value and other metrics and ratios. In the case of some Australian companies, up to 30 institutional analysts from banks and stock broking companies are forecasting the earnings per share, aggregated and available in ShareAnalysis. A range of estimates is also displayed to illustrate the level of agreement in the analyst community, as well as the number of analysts covering each stock.
The final piece to the puzzle is the safety margin – the difference between a company’s intrinsic value and current share price. Intrinsic value calculations are only ever an estimate, so it makes sense to apply a safety margin to the intrinsic valuation to allow for uncertainty.
Value investors aim to invest in high quality companies that are growing their intrinsic value and trading at a price below that intrinsic value estimate. Warren Buffett famously said that in the long run share prices tend to follow value. Buy a growth stock at a positive safety margin and your share portfolio should perform quite well.
ShareAnalysis’s powerful filter and in-depth yet intuitive stock research platform does all the laborious stock analysis for you. Your job as an investor is to simply focus on understanding the best investment opportunities and acquiring shares in those businesses at an attractive safety margin.
Coming Soon : Portfolio Builder
– Artificial Intelligence assists you to create a tailored portfolio
Portfolio Builder draws on the robust quantitative analysis that powers the ShareAnalysis research tool. Historical and forecast data is sourced from Global data providers and processed through ShareAnalysis’s algorithms, filtering out the stocks most likely to underperform and guiding the customer to a portfolio of quality stocks.
To get started, customers answer a series of general questions and Portfolio Builder then suggests a starting point portfolio of securities in response to the customer’s circumstances and preferences. The customer refines the portfolio by changing the spread of stocks across different industry sectors, different levels of market capitalisation and different levels of risk. Removing stocks that that have attributes the customers doesn’t like, or just removing any individual stock for any reason, can further refine the portfolio. The result is a well-diversifies portfolio of quality investments, tailored to each customer.
Customers are prompted to re-align their portfolio at regular intervals to ensure that it remains consistent with their individual risk filters as markets and stocks change.