“The top 100 companies have struggled to grow earnings, but there are many other companies with sustainable long-term earnings growth. The key is to look for good-quality companies with a sustainable competitive advantage where it is difficult for clients to discontinue using the product or service. A good example is MYOB, which recently posted strong double-digit earnings growth. MYOB is the incumbent in SME accounting software, with an installed base of 1.2 million users, 60 to 65 percent market share and a market position that is difficult to replicate. Another is Monash IVF. It posted 18 per cent earnings growth through a combination of organic growth as well as the acquisition of Sydney Ultrasound for Women. While the industry is benefiting from a stronger market, Monash is also taking market share due to its market-leading pregnancy success rates.” Callum Burns, Portfolio Manager, SG Hiscock (quote originally appeared in the AFR: (VIEW LINK) )


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