Investors shouldn’t rotate out of mega-tech to value because mega-tech are value… Our analysis shows that mega-tech stocks not only offer some of the best growth opportunities, but also offer some of the best ‘value’ opportunities in the market today
James Anderson has spent decades capitalising on the market’s short-term focus by buying traditionally “expensive” stocks with incredible upside potential. Here we take a page out of his investment playbook.
Investment returns, in the long run, are dictated by two factors: earnings growth and changes in the earnings multiple. Many high-flying businesses today are trading at exorbitant multiples. What are the implications of this for long-run annual returns for those stocks?
“Discussing how the weak US middle-market business outlook is beneficial for the large alternative asset managers
Over the last 12 months we have borne witness to one of the most significant portfolio reallocations of modern times. Investors have sold ~US$250bn of global equity funds and bought ~US$780bn of bond funds (inc money market). Looking at the difference between equity and bond flows (i.e. equity flows minus bonds flows), implies over US$1 …
Peter Lynch, the legendary investor, once quipped that it’s best to invest in businesses that any idiot could run, because sooner or later one will. This begs the question of what drives the economic returns of businesses: is it the competitive forces of that industry or the skill of management? It’s likely a combination of …
Look for Businesses That Get More Than Their Fair Share Read More »
Forecasting peaks of cycles is notoriously difficult, and while it often feels like we’re reaching the top of the longest expansion period in history, evidence suggests there is still plenty of room to grow. Equity market tops are often associated with euphoria and overconfidence, when otherwise risk-averse investors finally succumb and buy equities or the …
There are lots of things that could happen; but only one thing that will happen. This is one of the better articulations out there of the concept of risk. Understanding risk is at the core of any investment because substantially all investments could result in a range of possible outcomes. Sometimes that range is narrow …
Growth comes in different forms, some of which are intuitive and easy for our minds to handle. Unfortunately, simplistic growth models often fail to adequately describe the world around us. Relying on them to make investment decisions can lead to sub-optimal or even dire outcomes. As students of investing this behoves us to explore more …
Last week, Netflix reported that U.S. subscribers in 2Q19 declined for the first time in nearly a decade, erasing over $20 billion in market capitalisation as investors fretted over the looming “streaming wars”. The company’s dominant position in programmed video streaming will soon be tested by the launch of streaming services from Disney, NBCUniversal and …
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