The most important ingredient of a great investment is having an outstanding ‘horse and jockey’; a business that’s operating in an attractive industry, and a highly capable management team. Kate Howitt, Portfolio Manager at Fidelity International, explains the attributes they look for, and why Wisetech Global ticks all the boxes.
- The first step to analysing a business is to understand the returns of the company. What rates can the company reinvest at, and how much are they able to reinvest?
- An ideal business can invest at high rates of return, and can self-fund that growth from their prior returns
- Most importantly, the company must have a great ‘horse and jockey’; a business that’s operating in an attractive industry, and a highly capable management team
- Wisetech Global (ASX:WTC) is a great example of these attributes
For further insights from the Australian Equities team at Fidelity International, please click here
Very articulate. Knows her stuff. I'd be happy to hear more from Kate.