At some point in their lives, most people have lusted after a dream item, but been unwilling or unable to justify the price tag. Whether it’s a car, jewellery, or luxury holiday there's a point at which the price is too high to justify. But then, the retailer suddenly announces a big sale that brings it within reach.

Buying stocks is no different. Quality comes at a price, but occasionally the entire equity market goes on sale - allowing you to snap up your dream stocks at a discount.

In this week’s episode of The Rules of Investing, Anthony Aboud from Perpetual shares two companies that he’d love to buy the next time stocks go on sale. We also discuss his large overweight position in Commonwealth Bank, what he looks for in a compelling short candidate, and the company results he’s most interested to read this February.

Time stamps:

  • 2:12 – An early investing experience that shaped the way Anthony thinks
  • 6:58 – A shocking prediction made at Livewire Live
  • 11:46 – How to position yourself in the expensive market we currently live in
  • 16:00 – Anthony’s high conviction in CBA
  • 19:54 – Why Return on Equity on mortgages is high in Australia
  • 21:48 – Xero and Afterpay - the risks associated with high multiple stocks
  • 31:57 – Characteristics of a short and an example of one
  • 38:00 – The companies Anthony’s most excited for reporting season
  • 42:26 – An expensive company Anthony would like to own in a sell-off
  • 44:42 – Anthony answers our 3 favourite questions

Content discussed:

  • "Catch and Kill" with Ronan Farrow. Available as a podcast or a book.

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Brett Davies

Great interview and insights from Anthony Aboud

Captain Winklewand

thanks for the interview - that was interesting. Anthony you mentioned Xero and MYOB - have you evaluated Reckon at all? Seems to me they have quite a bit in common, yet it's unloved in terms of share price. Thanks