Richard Hemming breaks down why we’ve stayed invested in Australia’s big banks — even when most analysts were calling them a sell.

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To celebrate Issue 200 of our Blue Chip Report, we’re giving away our latest special report on Australia’s major banks.

Inside, you’ll get:

• In-depth analysis on CBA, NAB, ANZ, Westpac & Macquarie
• Our latest views on valuations, risks, and opportunities
• How we think about banks in a long-term portfolio

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(Takes 10 seconds. No fluff. Just quality research.)

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A Milestone Nine Years in the Making

Richard Hemming here from Under the Radar Report.

Today I want to talk about the other side of our business, Blue Chip investing and celebrate a milestone we’re incredibly proud of.

We launched Blue Chip back in early 2017.

Nine years on, we’re still going strong and still focused on one thing:

Quality.

Recently, a long-time subscriber called to say he was cancelling. Not because of the service — but because his circumstances had changed.

What stuck with me was what he said next:

“Your reports gave me invaluable advice. The stocks you cover are clearly very carefully chosen.”

He’s right.

We are extremely selective because Blue Chip investing isn’t about noise or speculation.

It’s about owning high-quality businesses that stand the test of time.

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Why We Focused on Banks Early

One of the first sectors we focused on was banking.

And for good reason.

Australia’s big banks dominate the lending landscape:

• Around 70% of mortgages sit with the big four
• They benefit from scale, regulation, and entrenched market positions
• And they are fundamentally balance sheet businesses

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The Surprising Reality of Bank Returns

Over the past decade, banks like CBA and NAB have delivered ~6% annual returns, with stronger performance in recent years.

But here’s what’s interesting:

👉 Return on equity (ROE) has actually been declining over that time.

Even more surprising?

Many analysts and brokers have been calling banks a “sell” for years.

And in doing so, they’ve missed a significant portion of those gains.

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What Most Analysts Got Wrong

There’s a simple reason for this disconnect.

Many analysts:

• Overestimated how good times would turn bad
• Overestimated the likelihood of a downturn
• Underestimated how resilient banks actually are

As former Bob Joss famously said:

“Bad loans are made in good times.”

That’s true.

But in Australia, we haven’t had a meaningful recession for decades.

Instead, we’ve had:

• Low interest rates
• Strong housing demand
• Rising asset prices

The biggest beneficiaries?

👉 Homeowners
👉 Banks

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How We Think About Banks

At their core, banks are balance sheets.

And if you’ve followed our small cap strategy, you’ll know:

👉 Balance sheet strength is our number one criteria.

That gives us a unique perspective.

While others were selling, we:

• Held our positions
• Added selectively
• Only recently began taking some profits

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Investing Isn’t Just for the Professionals

One of the key messages behind our Blue Chip service is this:

Investing isn’t just for sharp suits on Wall Street, Collins Street, or George Street.

It’s for everyday investors.

It’s personal.

It’s how you:

• Build wealth
• Create financial freedom
• Achieve your long-term goals

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Get the Full Banking Report

We’ve made Issue 200 — our special banking report — completely free.

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