Abernethy: Retail investors need to forget about the short term and start focusing on the long term

John Abernethy, CIO of Clime Asset Management, uses the example of Woolworths to highlight what he believes is a worrying trend in retail investors focusing on short term outcomes. Abernethy says a big private equity player such as KKR may have Woolworths in its sights because its current capitalisation is only slightly above what Wesfarmers paid for Coles back in 2007. “I think what’s happened is that we’ve got a market which is full of rumourtrage up and down. There are hedge funds and brokers who seem to know nothing about retail telling you that the end is nigh for Woolworths.’’ Abernethy says the Woolworths example highlights why retail investors should focus on a three to five year view and forget trying to generate short term results. "These short term movements are an opportunity. But don't think this is about making money in 3 months or 6 months or a year. It's probably going to be a 3 - 5 year gig." Watch the full interview here: (VIEW LINK)


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