Buy Hold Sell, by Livewire Markets

Buy Hold Sell: Best of the Big Four and 2 fundie favourites

Love them or hate them you really have to hate the banks. Right? Well - maybe not so fast. After all Aussie investors love them, and why not? They've been a trusty source of dividends for years. And, last year, the banks endeared them to the broader public when they allowed people to pause loans and mortgage repayments, thus providing a life raft during peak COVID. 

Now, having recovered by an average of nearly 71% from their COVID-lows, the Big Four are flying higher on our cashed-up country's improving economic outlook. In fact, KPMG found that the Big Four have recently reported a combined cash profit after tax of $13.8 billion, up 62.3% compared to the same time last year. 

The Big Four banks continued to strengthen their balance sheets during the half-year, lifting their CET1 ratios by 105 bps to 12.4% - the strongest capitalisation the banks have boasted in decades, KPMG reported. 

So, in this episode of Buy Hold Sell, Livewire Markets' James Marlay sits down with Wilson Asset Management's Matthew Haupt and Firetrail Investments' Scott Olsson to put the banks head to head. Plus, they each share one financial sector stock that has caught their attention. 

Buy Hold Sell: 6 global leaders to replace the FAANG stocks

It's been a tough year for the global tech giants. After running hard 2020 they were met with a sharp sell-off in March and the NASDAQ composite fell 10.5% in less than a month. This week we saw the story turn from bad to worse as the mention of inflation from Treasury Secretary Janet Yellen kicked off another sell-off across the tech-heavy index.

We know that these companies won't stay on top forever, but who will replace them when they do fall? We sat down with experts to find out.

Global growth fundies Nick Griffin from Munro Partners and Alex Pollak of Loftus Peak join Bella Kidman to weigh in on which companies could soon replace the FAANG stocks. These include Roku, a platform allowing cord-cutters to access streaming services from their TV; Deere & Co, the tractor-maker revolutionising the agricultural industry; Crowdstrike, the leading provider in cloud-based cybersecurity; and Twilio, a cloud communications business, providing companies like Uber with their in-app messaging system. 

Plus, our fundies each share their top stock set to be the next global leader. 

The next dominant theme of the decade

Those who twigged Web 2.0 would transform the world over the past decade are doubtless feeling pretty smug right now. And why not? 

The likes of Facebook, Amazon, Apple, Netflix, and Alphabet (Google) have returned a respective 762%, 1767%, 1041%, 1431% and 780% over the past 10 years (or since listing). Together, an almost (read: very) ridiculous 5781%. 

But the perennial questions burn as hot as ever: Who's next? And what will be the next dominant theme set to take markets by storm? 

In this thematic episode of Buy Hold Sell, Munro Partner's Nick Griffin and Loftus Peak's Alex Pollak point to the shift towards decarbonisation of the planet as the next major trend set to shape global markets. 

Nick and Alex join Livewire Market's Bella Kidman to share their insight on how investors can get on the right side of this trade and where, specifically, they are seeing opportunities. 

Note:This episode was filmed on 29 April 2021.

Buy Hold Sell: 4 disruptive winners and 2 overhyped darlings

Which were the winning listed companies of the last decade? Just take a look at the pointy end of the global rich list: Amazon's Jeff Bezos, Tesla's Elon Musk, Facebook's Mark Zuckerberg, Microsoft's Bill Gates, Google's Larry Page and Sergey Brin. 

But then these companies weren't always at the top. They had to displace others (General Electric, anyone?). And what they all have in common, beyond technology, is disruption. Which begs the question: which up-and-coming companies are now charging to the finish line - ready to take them on and even surpass them in the never-ending race to global domination? 

In this episode of Buy Hold Sell, two global growth juggernauts - Nick Griffin from Munro Partners and Alex Pollak from Loftus Peak - share their thoughts on four stocks already on the path to global disruption. 

Plus, our fundies will each share one stock that they think the market isn't getting right. 

Note: You can watch, listen or read an edited transcript below. This episode was filmed on 29 April 2021.

Everything you need to know about shorting

What's the first thing that comes to mind when you hear "shorting"? For me, it's every finance fanatic's favourite film The Big Short. Or, if you twisted my arm, the short squeeze we witnessed at the beginning of the year in GameStop. 

A LOT of money was lost (and made) in the above examples. And while Michael Burry may have been heralded a hero, the hedge funds in the GameStop saga certainly were not. 

So, let's address the elephant in the room. Shorting, more often than not, can get a bad rap, with investors accusing short-sellers of robbing innocent shareholders of returns. 

But Perpetual's Anthony Aboud and Sage Capital's Sean Fenton believe otherwise, arguing shorting brings flexibility to investors portfolios, helping them to profit from a greater variety of companies in both bull and bear markets.

So, in this episode of Buy Hold Sell, Aboud and Fenton join Livewire Market's Ally Selby to discuss the ins and outs of shorting, where they are seeing opportunities in the current environment, and whether you should add shorting techniques to your investing toolbox. 

Note: This episode was filmed on 14 April 2021.

Buy Hold Sell: 4 outperformers and the ASX's most shorted stock

The last 12 months in markets have sure been wild. On average, the top five gainers across the ASX 200 returned a whopping 371.5%. And no to you cynics out there, that wasn't all driven by Afterpay. The biggest gainer was in fact Pilbara Minerals, an emerging lithium miner up 551.9% since April 2020.

While growth stocks and stay at home plays dominated markets in 2020, Q1 2021 has told a different story as value and cyclicals made their comeback. It has got the Livewire team thinking, have these stocks run too hard?

So, in this episode of Buy Hold Sell, Ally Selby is joined by two long/short experts - Perpetual's Anthony Aboud and Sage Capital's Sean Fenton – to determine whether it's time to turn short or stay long on these winners. Plus, our fundies weigh in on the ASX's most shorted stock. 

Note: This episode was filmed on 14 March 2021.

Buy Hold Sell: 6 quality compounders for your back pocket

It was Albert Einstein who reportedly described compound interest as "the eighth wonder of the world", dubbing the process the universe's most powerful force.

 

Whether or not that is true, the magic of compounding truly is that, magic. With an investment's earnings, from either interest or gains, reinvested to reward patient investors with further growth over time.

 

It's what sees Warren Buffett - whose US$101.2 billion fortune has ordained him the title of The Oracle of Omaha - argue investors only buy stocks they would be happy holding if the market shut down for ten years.

 

So, in this episode of Buy Hold Sell, Livewire Markets' Ally Selby is joined by Perpetual's Anthony Aboud and Sage Capital's Sean Fenton to put four companies with long term growth potential to the test. Plus, each of our fundies shares one business that they believe investors can be comfortable holding if the market closed for the foreseeable future.

 

You'll be bending it like Buffett in no time.

Buy Hold Sell: 2 core ETFs and 4 satellites for some sizzle

Here's a little sizzling fun fact for your Friday after-work drinks. There is now more than $102 billion invested in exchange-traded funds (ETFs) in Australia, with almost half of that amount ($46 billion) invested over the past 12 months alone.

For some perspective, that's bigger than the GDP of nearly 130 countries (according to the International Monetary Fund), like Luxembourg, Guatemala, Bulgaria, Ghana, Croatia, Iceland, the Maldives and Fiji, to name a few.

It's safe to say then that ETFs are well and truly on their way to world domination - with investors young and old using the investment vehicles for index-like returns, active management, and various exposures to exciting thematics.

To help distinguish the steak from the sizzle, Livewire's Bella Kidman is joined by Shaw and Partners' Adam Dawes and VFS Group's James Whelan for their thoughts on two core ETFs, as well as four satellites with upside potential.

NB This episode was filmed on 31 March 2021. 

Your most-asked ETF questions answered

There are so many things in life that remain unanswered: how to cure hiccups, why time runs in only one direction, why there is only one word for thesaurus.

However, there is one thing we've been able to bring to light: all your questions on exchange-traded funds, or ETFs. 

From liquidity and management expense ratios to the benefits and disadvantages of using passive and active funds. This thematic episode of Buy Hold Sell hopes to answer some of the market's most common queries and questions on ETFs. Livewire Market's Bella Kidman is joined by the ETF experts; Shaw and Partners' Adam Dawes and VFS Group's James Whelan, to help join the dots on these investment products. 

You're welcome. 

Note: This episode was filmed on 31 March 2021.

Buy Hold Sell: 3 ETFs for bulls and 3 for bears

The VIX is uncharacteristically calm at the moment. Since rocketing to an all-time high of 82.69 in mid-March - which was its highest level since its inception in 1990, by the way - the index which tracks future expectations of volatility has since taken a tumble, falling nearly 80% to around 17.

However, as much as we have bulls running, the bears are still at large in equal numbers. To consider the prospects of both beasts, Buy Hold Sell has lured Shaw and Partners' Adam Dawes and VFS Group's James Whelan to share their thoughts on three exchange-traded funds for bulls and three for bears. 

As of the end of February, there were 215 ETFs listed on the ASX, with the market cap of these funds increasing by 52.6% over the past 12 months. Average transactions increased by 151.5% over the same period.

And, as Livewire Markets' Bella Kidman says, with six ETFs in the spotlight there truly is "something for everyone" in this BHS special. 

Note: You can watch, read or listen to the discussion below. This episode was filmed on 31 March 2021.