Contrarians can be a lot like teenagers: they think they’re all different but end up looking the same. This however, is not true of this week’s guest, Tim Hillier from Allan Gray. Case in point: when asked what stock he’d own if the market were to close for five years,... Show More
In an age of social media and smartphones, the challenges faced by investors today are decidedly different to just a few decades ago. With algorithms serving us a consistent diet of content that’s similar to what we’ve ‘liked’, it’s easy to get caught in an echo chamber. Show More
The list of problems facing Telstra is well known: falling revenues as the NBN rolls out, and declining market share in mobile. As the payments from the NBN begin to roll-off, some have questioned whether Telstra can even maintain its reduced dividend. But it’s precisely this negativity that caught the... Show More
As the GFC started to unfold, Real Estate Investment Trusts (REITs) quickly fell in value, from a generous premium to just 75% of their book value. Allan Gray saw a contrarian opportunity, stepped up to the plate, and started investing in the sector. Show More
It is not easy being a financial adviser. As fund managers it is our job to deliver the best returns we possibly can with the mandate we are given, but an adviser’s job is arguably a lot tougher. Clients work for years, entrusting their hard-earned money to advisers. Understandably that... Show More
Sigma is a wholesaler of pharmaceutical products. It acts as an intermediary distributor that buys drugs from manufacturers and sells them to the pharmacies that ultimately dispense these drugs to Australians in need. Some of these pharmacies operate under one of Sigma’s banners (see Figure 1), while others are independently... Show More
Baron Rothschild famously told investors to ‘buy when there’s blood in the streets’, but buying opportunities like the GFC don’t come around often. How can investors find contrarian ideas at other times? Simon Mawhinney from Allan Gray, which specialises in contrarian investing, addresses this question in the video below. Show More
Markets have ‘baked in’ expectations that interest rates and inflation will stay low for a long time, but Simon Mawhinney, Chief Investment Officer at Allan Gray, thinks that assuming low rates for an extended period could be dangerous. Show More
Electric vehicles displacing the requirement for oil is a popular market narrative, but Simon Mawhinney, Chief Investment Officer at Allan Gray, says this misses half the picture. While demand growth is expected to be lower as EV penetration increases, supply is also under pressure following years of underinvestment. Show More
Roc Oil recently announced a 'merger of equals' with Horizon Oil. Horizon shareholders will receive Roc shares in exchange for tipping their assets into the combined group. Roc's chairman Mike Harding certainly seems excited. In an official ASX release he referred to the merger as a 'cracking deal'. But not... Show More