Buy Hold Sell, by Livewire Markets

Lessons from Australian funds management legends

To become a successful investor, you must be humble and willing to learn from your mistakes.

As Micheal Jordan famously said:

"I’ve missed more than 9,000 shots in my career. I’ve lost almost 300 games. 26 times I’ve been trusted to take the game-winning shot and missed. I’ve failed over and over and over again in my life. And that is why I succeed."

So in this episode, Livewire's Ally Selby was joined by two of the Australian funds management industry's all-star investors, Catherine Allfrey from WaveStone Capital and Anthony Aboud from Perpetual Asset Management.

They cut through the market noise, highlight some management teams that they particularly like, and share which investment decision really put them on the map.

They also share some of the biggest mistakes they've made in their 25+ years in the market and, more importantly, the key lessons they learned over that time.

Note: This episode was filmed on Tuesday 17 October 2023. You can read an edited transcript: 

https://www.livewiremarkets.com/wires/lessons-from-the-goats-of-australian-funds-management 

Buy Hold Sell: 3 stalwart stocks (and 2 that no longer make the grade)

There are some companies that seem to have been around forever, delivering year in and year out. 

Just like a trusty car that has done 500K clicks but still runs like new, a favourite pair of blue jeans that can't be thrown away, or a reliable childhood friend, these stocks have been woven into the fabric of Australian investing - and most investors, both punter and professional alike, are likely to have run the ruler over these companies' balance sheets at various points in time. 

So, which stocks are quintessential ASX names and, more importantly, are they worth investing in right now?

To help answer those questions, Livewire's Ally Selby was joined by Perpetual Asset Management’s Anthony Aboud and WaveStone Capital’s Catherine Allfrey for their analysis of three ASX stalwart stocks (all with 27 years or more listed history). 

Plus, they also share one ASX-listed company they have covered extensively over their investing careers that is no longer in their good books. 

Note: This episode was filmed on Tuesday 17 October 2023. 

Buy Hold Sell: 3 all-weather businesses (and two that no longer make the grade)

At the recent Livewire Live event, Mary Manning from Alphinity outlined the bull case for Ferrari and summed it up nicely by saying that regardless of the economic conditions, people are going to want to buy Ferraris - such is the power of the Ferrari brand. 

There are some businesses that, due to a combination of the segment that they operate in, the power and universal appeal of their brand, and the demand for their products, are much better at weathering the economic cycle.  

On this edition of Buy Hold Sell, host David Thornton is joined by Nikki Thomas from Magellan and Adam Chandler from Claremont Global, as they run the ruler over a handful of all-weather businesses to see how they stack up. 

Make sure to watch the episode to find out which tech titan they both rate as a Buy, as well as the one stock they each highlight that no longer makes the grade. 

Note: This episode was filmed on September 20, 2023.

From 55,000 stocks to the chosen few: How to hunt for the world’s best opportunities

At last count, there are more than 55,000 publicly-listed companies across the globe. 

That is a wealth of opportunity in anyone's language and it begs the question, how on earth does anyone decide what and where to invest in? 

This is where the value of a fund manager really comes into play. Not only do fund managers each have an investment style that they pursue - whether it be growth, value, income, etc. - they also have a robust process for whittling down the plethora of available opportunities, to a portfolio of all-star stocks. 

It's no easy feat, either - as we all know. 

Fund managers need to have enough flexibility in their investment process to cater to changing market conditions and themes, but also be disciplined in their application of the process, to ensure they don't stray from their mandate, nor overreact when times are tough. 

To shed some light on this balancing act and to share some insights into their processes, host David Thornton was joined by Nikki Thomas, from Magellan and Adam Chandler from Claremont Global. 

Plus, they also outline the thesis on a high-conviction holding in their portfolios right now. 

Note: This episode was filmed on September 20, 2023.

Buy Hold Sell: 5 high quality stocks in the world right now

When the investing landscape turns to custard, invariably one term gets bandied around - "quality". 

Quality is the investment style that is designed to see you through all the peaks and troughs of the economic cycle. 

Quality targets companies with consistent track records, strong management, dependable earnings, and healthy balance sheets. The style has been around for decades and its popularity is backed by evidence. 

With the global economic and investing landscape becoming increasingly challenged, particularly as economies grapple with soft landings versus full-blown recession, quality is rising once again. 

On this edition of Buy Hold Sell, host David Thornton is joined by Nikki Thomas from Magellan and Adam Chandler from Claremont Global to hunt for the highest quality stocks in the world.

Note: This episode was filmed on September 20, 2023. 

Buy Hold Sell: 3 stocks directors have been selling (and 2 big buys)

Millions of dollars of shares are sold and bought each month by company directors. Often, investors watch these transactions as a signal that leadership teams know something we don't. So should you buy or sell if leadership teams are too? 

Firstly, there are a variety of reasons (or maybe excuses) why a director may sell stock in their company. Take tax reasons, for example, or divorce settlements (half of all first marriages end in divorce, after all), or just because they need the cash - to purchase a new home or holiday house, for instance.

Of course, it could also mean these directors think their company's shares have run too hard - or that there are troubles on the horizon that the rest of the market doesn't know about, yet. 

Interestingly, FirstLinks found that companies tended to perform worse if there had been director selling over a six-month period than companies where no director sales had occurred. 

That said, there's only one reason a director would buy shares, and that's because they think their stock's share price is about to go up. 

So in this episode, Centennial Asset Management's Matthew Kidman was joined by Auscap Asset Management's Will Mumford and IML's Michael O'Neill for their analysis of three stocks where director selling has occurred over the past month. 

Plus, to even the score, they also name one stock they have been buying on the back of reporting season. 

Note: This episode was filmed on Wednesday 6 September 2023. You can read an edited transcript below.

https://www.livewiremarkets.com/wires/buy-hold-sell-3-stocks-directors-have-been-selling-and-2-big-buys/

6 stocks to back in FY24

Reporting season is now done and dusted. Of the fund managers this anonymous writer has spoken to, most seem to have had a surprisingly positive month. For others, particularly the holders of the month's portfolio bombs, it probably wasn't so soothing.

So in this episode, Centennial Asset Management's Matthew Kidman was joined by Auscap Asset Management's Will Mumford and IML's Michael O'Neill.

They explain why some companies were sold off despite beating expectations, name four of the best results from the month and two shockers. Plus, they also select one stock they believe investors can comfortably hold until August next year.

Note: This episode was filmed on Wednesday 6 September 2023. You can read an edited transcript below: 

https://www.livewiremarkets.com/wires/6-stocks-to-back-in-fy24/ 

Buy Hold Sell: 3 shocking results (and 2 stocks flying under the radar)

It's been a volatile month for markets. Despite the S&P/ASX 300 only sinking around 2.3% in August, the dispersion of returns within some of the market's favourite, and now, its most disappointing stocks has never been so clear.  

According to FNArena, the worst-performing stock during the month was Mesoblast (ASX: MSB), followed soon after by Abacus Property Group (ASX: ABP), Chalice Mining (ASX: CHN), Iress (ASX: IRE) and Core Lithium (ASX: CXO) - all of which sunk more than 38% over the last month. 

But should investors look through these disappointing results and pick up these beaten-down names at a discount? 

That's exactly the question this episode will attempt to answer. Centennial Asset Management's Matthew Kidman was joined by IML's Michael O'Neill and Auscap Asset Management's Will Mumford for their analysis of three of August's most disappointing results - including ResMed (ASX: RMD), Telstra (ASX: TLS) and Iress (ASX: IRE). Interestingly, only one of these stocks is now a resounding sell. 

Plus, they also each name one stock they believe has flown under the market's radar so far. 

Note: This episode was filmed on Wednesday 6 September 2023. You can read an edited transcript below: 

https://www.livewiremarkets.com/wires/buy-hold-sell-3-shocking-results-and-2-stocks-flying-under-the-radar/ 

Buy Hold Sell: 3 of the ASX’s fastest-growing stocks (and 2 in the dog house)

With interest rates (currently) on pause, investors are once again looking for growth opportunities that can bolster their wallets and compound their cash faster than if they were to leave it in the bank. 

One way investors can gauge the probability of picking a winning stock is the growth rate in earnings per share (or EPS). 

For those not in the know, EPS is calculated by dividing a company's net profits by the number of shares a company has on issue. The growth in this number demonstrates how quickly a company can boost its profits per share. Typically, a growth rate of 20-25% or more is the sweet spot. 

So in this episode, Livewire's Ally Selby was joined by Elvest's Adrian Ezquerro and LSN Capital Partners' Nick Sladen for their analysis of three stocks with high EPS compound growth rates over the next two years. 

Plus, they also name two stocks that could be in the dog house from here. 

Note: This episode was filmed on Wednesday 23 August 2023. You can read an edited transcript below:

https://www.livewiremarkets.com/wires/buy-hold-sell-3-of-the-asx-s-fastest-growing-stocks-and-2-in-the-dog-house/ 

7 growth stocks for the next 10 years

In the midst of reporting season, it's often easy to forget about the long-term potential of some of the market's great compounders. 

Last week, we saw stocks like Megaport (ASX: MP1) and Altium (ASX: ALU) soar 20% in one day on the back of their results, while stocks that disappointed, like Ramsay Health Care (ASX: RHC) and Iluka Resources (ASX: ILU), were punished by the market. 

But by looking through quarterlies, half yearlies and full-year results, investors can see the bigger picture. 

 

Companies like REA Group (ASX: REA) have returned 345% over the past 10 years, while Fortescue Metals Group (ASX: FMG) has lifted 378%, Xero (ASX: XRO) has soared 706%, and Pro Medicus (ASX: PME) has skyrocketed 15,054%. Over that same time period, the ASX All Ordinaries has only lifted 43% (and the benchmark tracking Australia's biggest companies, the ASX 200, has risen 39%). 

So in this episode, Livewire's Ally Selby was joined by LSN Capital Partners' Nick Sladen and Elvest's Adrian Ezquerro for their tips for finding the best growth opportunities over the next decade.

Plus, they also name seven companies for above-market returns over the years ahead. 

Note: This episode was filmed on Wednesday 23 August 2023. You can read an edited transcript below: 

https://www.livewiremarkets.com/wires/7-growth-stocks-for-the-next-10-years