In March 2017 Ben Griffiths found himself in a deeply uncomfortable position. For the first time since inception 15 years ago his small cap portfolio was badly lagging the benchmark. Sentiment had violently swung against his stocks and Griffiths was facing a tough decision – hold the current course or reposition the portfolio to chase returns.
Griffiths made the call to 'white knuckle it' and hold the current line. His conviction and process were vindicated and just 12 months later the fund has added ~33% handsomely sitting 9% ahead of the benchmark.
In this deep dive interview we learn about the process and the experiences that have shaped the way Griffiths invests, how he is positioned today and his current view on the outlook for equities. He also lets us in on a little secret, Griffiths believes that a bell does ring at market bottoms and tops – you just need to know what it sounds like.
Eley Griffiths Group has been uncovering the next hidden opportunity in small companies since 2003. Find out how
- Early influences and investment principles
- Using all the tools available to inform your investment decisions
- A painful lesson about why it pays to be a patient investor
- Knowing what to look for to identify market tops and market bottoms
- A bullish view on the current outlook for equities
- Afterpay Touch, a new business emerging from the nursery on the ASX
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I understand what Ben is saying about hearing the bell at the top and bottom of the market. However, there is a big BUT.... both examples he gives are of sophisticated investors who he had access to who wanted to sell (top of the market) or buy (at the bottom of the market). Their actions were the final evidence that suggested to him that the bell was ringing. The ordinary lay investor like me doesn't have access to sophisticated investors telling us they want to sell or buy. I, and I'm sure many investors out here, would like to know how we can hear the bell as well. Or do we never get to hear the bell and only find out much later that the bell has already rung.
What an engaging interview! All of the things I love about this forum rolled into one. Thanks Ben for your candid generosity in sharing your experience. Your ongoing passion for investing comes through and motivates us all to keep working hard. It’s reassuring to know that one of the wisest heads in the Australian investment community still has faith in the current outlook for equities. Respect.
great interview guys
Best interview I have seen on Livewire
Thank You Ben, and Livewire! One to add to my ‘Reading List’.