Buy Hold Sell, by Livewire Markets

Buy Hold Sell: 4 top stocks (and 2 that have lost their shine)

It's the finance industry's worst-kept secret. Over the long term, the majority of active managers underperform their benchmarks. In fact, SPIVA data shows that over a 10 year period, 79.82% of funds underperformed the S&P/ASX 200.

Many believe this underperformance is thanks to the proliferation of index-like funds. While others believe it is because managers are forced to invest in more stocks as funds under management grows. Then, of course, there's the matter of fees detracting from performance.

But according to a study by US-based portfolio manager and author Robert Hagstrom, a high conviction portfolio of investors' best ideas can increase one's chances of outperformance.

In fact, he found that a randomly generated portfolio of 15 stocks would generate a maximum return of 26.6% annually over a period of 10 years. For 50 stocks, this was 19.2%. Meanwhile, among the portfolios with 250 stocks, the best return possible was 16% per annum.

So in this episode, Livewire's Ally Selby was joined by Perpetual's James Rutledge and WaveStone Capital's Raaz Bhuyan - two high conviction fund managers - for their analysis of each of their two top holdings.

Plus, we also asked our fundies to analyse two market darlings that could be in for some troubled times over the months ahead.

Note: This episode of Buy Hold Sell was shot on Wednesday 30 March 2022. You can read an edited transcript below:

https://www.livewiremarkets.com/wires/buy-hold-sell-4-top-stocks-and-2-that-have-lost-their-shine/ 

The best management teams outside of the ASX 20

 

Not too long ago, we asked two fund managers to name some of the best management teams in the business. This was in October last year, which now, at least to us, feels like a world away. 

Come to think of it, it's about time we took another look at some of the country's top leaders, so we can find the steady hands we so badly need to sail us through these stormy markets. 

So why do we keep coming back to management teams? Well, a leadership team can make or break a business. Top-notch teams implement capital management initiatives, pull off surprisingly timely acquisitions and of course, build enviable company cultures. 

Investors covet management teams that have "skin in the game", while passionate founders repeatedly become household names as they push their businesses (and share prices) higher. 

So in this thematic episode, Livewire's Ally Selby was joined by Perpetual's James Rutledge and WaveStone Capital's Raaz Bhuyan for a look at the best management teams outside of the S&P/ASX 20. 

These include talented teams across the energy, financials, retail, and technology sectors. Plus, Raaz and James also name one management team that impressed during the February reporting season, driving these fundies to take a position in these stocks. 

Note: This episode of Buy Hold Sell was shot on Wednesday 30th March 2022. You can read an edited transcript below:

https://www.livewiremarkets.com/wires/the-best-management-teams-outside-of-the-asx-20/ 

Buy Hold Sell: 3 stocks for offence (and 2 for defence)

Like any great football team, an investor's portfolio should feature an astute line-up of players, those for both offence and defence. 

A portfolio's strikers boast growing, consistent earnings - market leaders with enviable management teams, investing in assets and services that play into long-term trends. Meanwhile, the defenders cushion your portfolio in volatile, uncertain, headwind-filled times - as we face now.

In this episode, Livewire's Ally Selby runs onto the ASX's pitch alongside WaveStone Capital's Raaz Bhuyan and Perpetual's James Rutledge for their Buy Hold Sell debuts. 

Together, they analyse three long-term performers, including a lithium leader, a financial services giant, and one of Australia's best long-term growth stories. Raaz and James each consider whether these can continue to outperform in the months and years ahead.

And perhaps more importantly, the pair are tasked with helping investors avoid portfolio "own goals," assessing the potential protection afforded by Australia's biggest supermarket chain and a gold producer. 

Whether you’re looking to top the league table or are happy just to avoid relegation, watch the video, listen to the podcast or read an edited transcript below. 

Note: This episode of Buy Hold Sell was shot on Wednesday 30 March 2022.

Read the edited transcript below: 

https://www.livewiremarkets.com/wires/buy-hold-sell-3-stocks-for-offence-and-2-for-defence/ 

Buy Hold Sell: 5 small caps with big dividends

"Is there a doctor in the house? Is there a doctor in the house! Our Aussie small caps have collapsed, and we can barely feel a pulse." Oh, dear. 

It does feel a little dire, doesn't it? After all, the Small Ordinaries has fallen more than 7% since the beginning of the year, far worse than the country's blue chips (a fall of around 3%). But if there is one thing we can rely on in times like these, particularly in the strong economic environment in which we find ourselves, it's dividends. 

While small caps and dividends don't typically go hand in hand, these pocket rocket yielders are not as rare as you may think. In fact, if we are to go by the MVIS Australia Small-Cap Dividend Payers Index, there are 81 small caps with healthy, reoccurring dividends in our market. 

So to put five of them on the operating table, Livewire's Ally Selby was joined by two accomplished stock surgeons, Hayborough Investment Partners' Ben Rundle and 1851 Capital's Martin Hickson. With more than a few buys in there today, this episode may very well be the thing that resuscitates your portfolio. 

Note: This episode of Buy Hold Sell was shot on Wednesday 16th March 2022. You can read an edited transcript by clicking the link below.

https://www.livewiremarkets.com/wires/buy-hold-sell-5-small-caps-with-big-dividends-2022-03-23/ 

Is the worst over for small caps?

In short, no. Experts believe that while the velocity of the sell-off may be over for now, investors should brace for continued market turbulence over the year ahead.

 

After all, many reader favourites are bleeding red in 2022 - think notable names such as Zip Co (down 62%), Life360 (down 42%) and Poseidon Nickel (down 23%). That said, there's no need to run for the exit just yet.

 

Livewire's Ally Selby sat down with Hayborough's Ben Rundle and 1851 Capital's Martin Hickson for the small caps they are backing in this volatile environment, as well as two stocks they recommend investors steer clear of in 2022.

 

Note: This episode of Buy Hold Sell was shot on Wednesday 16th March 2022. You can read an edited transcript below:

https://www.livewiremarkets.com/wires/is-the-worst-over-for-small-caps/ 

 

Buy Hold Sell: 6 crowded small caps, but are they worth the price?

Ask any investor for a small-cap tip, and they'll likely deliver one with more conviction than a soccer player begging for a free-kick. How often do they put the money where their mouth is? A safe bet would be rarely. 

But when multiple experts are backing the same horse, it's probably worth taking a good look. Blue Ocean Equities recently published research into the most popular stock picks across over 40 small-cap managers based on their top holdings - sounds like a fountain of ideas to us. 

So, we turned to Ben Rundle from Hayborough Investment Partners and Martin Hickson from 1851 Capital for their views on four stocks making waves across the small-cap universe - but have their valuations peaked? Our two guests also share their top picks of the year.

Buy Hold Sell: 6 stocks supercharging their dividends in 2022

Aussie investors love a big dividend, and with markets taking a tumble, those dividends look super precious. The good news is that the ASX is flush with dividend opportunities after 2021 saw a record $87 billion paid to investors*. The ASX is now home to the #1 dividend-paying stock globally (hint: not a bank), and three Aussie shares feature in the top 10 dividend payers.

So, with growth on the nose, we turned to Blake Henricks from Firetrail and Michelle Lopez from abrdn for their views on four stocks that have supercharged their payouts. Our two guests also share their top dividend picks.

Click on the player below to watch the latest episode of Buy Hold Sell, brought to you by Livewire.

P.S. For all of you market wizards, Blake has thrown down a challenge to test your skills (see 1:33 – let us know in the comments).

*(Source: Janus Henderson Investors)

Note: This episode of Buy Hold Sell was shot on Tuesday 1st March 2022. You can read an edited transcript below:

https://www.livewiremarkets.com/wires/buy-hold-sell-6-stocks-supercharging-their-dividends-in-2022/

The best of reporting season (and some absolute shockers)

Over the past few months, the ASX has sailed through turbulent seas, with headwinds such as rising rates, a Russian war, and now a rain bomb over the east coast of the country, sinking the bourse more than 6% since the beginning of the year.

And of course, who can forget reporting season. As Centennial Asset Management's Matthew Kidman put it, it was "explosive".

So in this episode, Firetrail Investments' Blake Henricks and abrdn's Michelle Lopez analyse some of February's best and worst results. Plus, they also share whether they are picking over the wreckage for some oversold gems (spoiler: they are).

Note: This episode of Buy Hold Sell was shot on Tuesday 1st March 2022. You can read an edited transcript below:

https://www.livewiremarkets.com/wires/the-best-of-reporting-season-and-some-absolute-shockers/ 

Buy Hold Sell: 3 quality results and 2 that disappointed

We did it. We survived reporting season. And what a season it was. Value stocks far outperformed growth, as the reality of rising rates became very real. Meantime, financials lifted on these very same fears, while commodity-related miners also soared, pushed higher by the Russian invasion of Ukrainian. 

But on an idiosyncratic level, there were a number of surprises that delivered on the upside. Think Treasury Wines, which somehow redistributed its fine bottles of plonk despite losing business in China, or wealth platform HUB24, which managed to shoot the lights out when its competitors disappointed. And who can forget new market entrant Endeavour Group (and a recent Woolworths demerger), which was bid up more than 10% following its surprisingly smashing result.

In this episode, Centennial Asset Management's Matthew Kidman was joined by abrdn's Michelle Lopez and Firetrail Investments' Blake Henricks for their thoughts on these three high-quality results. 

Plus, for good measure, we also asked them to name one stock that massively disappointed this February reporting season. You won't want to miss this one. 

Note: This episode of Buy Hold Sell was shot on Tuesday 1st March 2022. You can read an edited transcript below:

https://www.livewiremarkets.com/wires/buy-hold-sell-3-quality-results-and-2-that-disappointed/ 

Buy Hold Sell: 5 long-term compounders

Ah, growth stocks. The darlings turned duds of the market. Would these long-term compounders have fallen out of favour with investors if it had not been for dreaded market kryptonite, or as the experts call it, inflation? Likely not. 

That said. Inflation is very much real. And rates are very much rising. Subsequently, over the past six months, local high-PE indices like the S&P/ASX All Technology Index and the S&P/ASX 200 Health Care Index have fallen approximately 27% and 15%. Yikes. 

But on a stock by stock level, particularly among investor favourites, losses have been far, far worse. Look as far as buy-now-pay-later darlings, like Zip Co and Afterpay (now Square), which have seen their share prices plummet. Or healthcare staples Resmed and CSL, also deeply in the red. 

So as a wise Justin Timberlake once said, in this episode, we are "bringing sexy back" to growth stocks. 

Livewire's James Marlay was joined by Monash Investors' Shane Fitzgerald and WILSONS' John Lockton for their analysis of three sustainable growers. 

Plus, they also each name one stock with long-term compounding potential that looks attractively priced today. 

Note: This episode of Buy Hold Sell was shot on Wednesday 16th February 2022. You can watch read an edited transcript below:

https://www.livewiremarkets.com/wires/buy-hold-sell-5-long-term-compounders/