How long have you been at The Rivkin Report and what is your role in and plans for the company?
I started the company with Rene in 1996 and published the first "Rivkin Report" in 1997. I left for two years when I worked in funds management with MMC Asset Management before returning about three years ago. I am currently chief executive officer. We look forward to continuing to provide profitable stock recommendations for subscribers. We remain open to providing additional services to our clients but have found it difficult to find partners with the dedication and standards that we require.
How has the company fared over the past two years? Has it lost its lustre since Rivkin's death?
Rene's mental illness and subsequent death obviously created challenges that few companies have to face, but due to a dedicated staff and relentless customer focus, resulting in strong customer loyalty, we have remained strong and profitable. In fact, our business is performing better than ever. Our recommendations have consistently maintained an 80 per cent success rate over the last 10 years. One of our biggest challenges, however, was ensuring our target market knew that The Rivkin Report continued to perform, and perform well, without Rene Rivkin. We don't have the benefit of the media coverage to support our brand name that Rene enjoyed, early in our history anyway. Industry changes have been significant with the emergence of the non-advisory brokers providing advice and a big growth in the number of online financial service providers.
How does the company work with financial planners?
Financial planners use our product for direct investment ideas. They also recommend The Rivkin Report to clients who want to invest some of their capital directly in the market but need a sound tool to help with the process.
Is the company a fundamentals researcher or is it more appropriate for the day trader investor?
We are ruthlessly rational fundamental investors who look for market events that provide anomalies or value opportunities. We generally gravitate towards high-quality businesses with high growth, but look for events that provide the opportunity to buy when the shares represent compelling value, not just acceptable value. Therefore, our ideal investment is a high-quality business with high barriers to entry and a competitive advantage: low to zero debt, strong management and the opportunity to buy the stock at a price that will deliver solid returns and provide a margin for error if things go wrong. We also use the Rivkin takeover trading strategy to help shorter-term traders make low to medium-risk returns over short periods of time. This has proven itself to be a very solid strategy over a long period of time and many subscribers love the short-term nature of the strategy.
What is your success rate with tips?
We don't give tips. That is what taxi drivers do. Our well considered ideas have a track record of being roughly 80 per cent correct, regardless of the market conditions. We expect this to improve in the future due to the constant finetuning of our process and increasing disciplines. Experience is a valuable asset and we are constantly accumulating it.
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Who have been your mentors?
I have been fortunate enough to have worked with and learned from the likes of Rene Rivkin, Shane Finemore, Erik Metanomski, Peter Guy, David Paradice and Roger Montgomery. I have also (from afar) learnt a great deal from Charlie Munger and Warren Buffett.
What type of person do you believe your business mainly appeals to?
The Rivkin Report appeals to an investor who wants to manage some or all of their money directly in the stock market and wants an excellent advisory tool to help with that process. We provide very specific advice, providing a clear entry and exit price.
What would you be telling people now that it seems a major correction is underway?
Corrections are what we wait for. They are wonderful opportunities to buy value. Don't be influenced by share price movements. Buy compelling value when it is offered, because it probably will not last long. Maintain emotional independence; never surrender your decision making to the herd. Corrections like this punish those who have been lazy, complacent and greedy in their investment process. Watching their pain is a great learning experience or reminder for everyone else. We must also have the courage to step into a market when others are panicking out because that is when true value is found ... just make sure that we know what we are buying and what it is worth.
How do you differentiate yourself from your competitors?
Consistent, relentless prioritising of our clients' interests before our own. A strong understanding and track record of finding small to medium cap stocks that are not well known or researched by the broader market. We adhere to an event-driven, value-focused discipline that has been developed with the help of some of Australia's best operators over the last decade and appears quite unique in style.
