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Fidelity International

Fidelity International is one of the worlds leading asset management companies. With a global network spanning the US, Europe, the Middle East, Africa and Asia Pacific, Fidelity manages over A$311 billion for millions of investors.

Q4 Investment Outlook: Braver for longer…

Fidelity International
Fidelity International Fund Manager

How long can the good times roll? The second-longest yet arguably most-hated bull market in post-war history just grinds on and on, while investors get more worried by the day. Valuations in some areas are certainly becoming stretched, but overall they remain some way off the peaks seen in 2000.... Show More

The opportunity of the century?

Fidelity International
Fidelity International Fund Manager

Gree Electric, Zhejiang Supor Cookware, Fuyao Glass. If you know much about any of these three companies, I take my hat off to you. Gree is the market leader in air conditioning in China. Zhejiang is the country’s largest manufacturer of pressure cookers, blenders and other small kitchen appliances. Fuyao... Show More

Time to look further afield

Fidelity International
Fidelity International Fund Manager

As we close out the first quarter of 2017, financial markets have once again shown their capacity to wrong-foot investors. During the first three months of the year, contrary to conventional wisdom, the top-performing stock markets have not been in the US, not even in a resurgent Europe, but in... Show More

The Recovery is real

Fidelity International
Fidelity International Fund Manager

Evidence from Fidelity’s 2017 Analyst Survey suggests that the global reflation/recovery is in full swing. Demand, capex expectations, and consumer sentiment are picking up, while the first signs of inflation in prices and wages are beginning to show up. Fidelity’s Analyst Survey draws on the 17,000 meetings our analysts conduct... Show More

Twitter: the harsh truth of post-truth?

Fidelity International
Fidelity International Fund Manager

Not even the patronage of Donald Trump could spare Twitter’s share price yesterday as the company published its lacklustre quarterly results. Disappointing ad sales, management turnover and sluggish user growth weighed on the performance of the California-based company, with results coming in below consensus Wall Street estimates. The firm’s net... Show More

Still value in cyclical stocks?

Fidelity International
Fidelity International Fund Manager

The very strong performance of cyclical shares in the second half of 2016 has left many investors arguing that their re-rating was unjustified, citing an uncertain political and macroeconomic environment as reasons to avoid them, and stick to exclusively ‘defensive’ strategies. Indeed, having seen such a significant re-rating of many... Show More

The great value rotation

Fidelity International
Fidelity International Fund Manager

A stand-out feature of global equity markets in the past few months has been a marked rotation away from expensive ‘quality’ stocks into cheaper ‘value’ stocks. As the chart below shows, quality stocks strongly outperformed up to the middle of 2016. However, by November, value stocks had caught up and... Show More

2017: Adapt or perish

Fidelity International
Fidelity International Fund Manager

A re-evaluation of investment theses is underway across all asset classes, industry sectors and geographies. Investors must quickly adjust to rapid shifts in the investment landscape’s tectonic plates or risk losing ground. We remain structurally positive on technology stocks thanks to strong levels of innovation. While smartphone growth is fading... Show More

Joshua - many thanks for your comment. I would agree with you that Peter did focus a lot on earnings growth and as you accurately highlight Facebook is growing faster than Apple. However Peter was also very disciplined around the price paid VS value received and used to talk to us a lot about trying to find value where others were not looking - Chrysler's turnaround which he has also covered in his books, used to be one of his favourite examples. As regards fast growers Peter believed in looking for those which had the potential to 10 bag on him (to compensate for the risk that a number of them do flame out). Facebook is a fast grower (and as you would note we have been loyal investors since IPO and from the lows it is up nearly 7x). however for it to even 3x from here would make it one of the first trillion$ market cap stocks out there (and incidentally approximating to Australia's 2016 GDP of $1.27 trillion). The market share, revenues, earnings and cash flow all that would imply seem a bit far fetched based on what we know today espeically in light of a more unfavourable regulatory regime which I foresee. On Apple, as an aside, I find it interesting that recently a great value investor like Warren Buffet has also disclosed it as one of his top holdings. I hope the above helps in giving some context of my thoughts

On What Peter Lynch taught me about Facebook -