Bob Desmond: We’re finding value everywhere

The Rules of Investing

Livewire Markets

When I ask most fund managers about today's operating environment, they almost invariably respond with words like 'difficult', 'complex', or 'bearish'. 

And you can't blame them. The age of cheap money and growth at any cost is over. They're not defeatist, by any means, but it's safe to say they've had easier days at the office. 

So it was a breath of fresh air to sit down with Bob Desmond from Claremont Global to record this latest episode of The Rules of Investing. Bob's optimistic, and he's "finding value everywhere."  

Claremont Global run a high conviction global fund of just 10-15 stocks. Being that concentrated would send shivers down the spine of many investors at a time like this. But while it's true that diversification is the only free lunch in finance, it's also no coincidence that the vast majority of the world's top investors pass on the free lunch and choose to be concentrated.

Bob takes comfort in knowing a few companies well. You could say that the quality growth companies Bob invests in are made for the moment. That is to say - indispensable large cap companies with lots of cash and big moats.  

In today's episode we cover the kind of big tech stocks Bob likes, the stock he's just bought after waiting years for the right price, how he manages investor expectations during a bear market, and much more!

Note: this episode was recorded on Monday October 10, 2022. 

 

Timestamps:

  • 1:00 – Market signals
  • 3:00 – Are high P/E stocks a falling knife?
  • 4:25 – Tech staples
  • 7:30 – Concentration in a bear market
  • 11:30 – Earnings season
  • 15:30 – What should companies do with their cash?
  • 21:30 – All sectors are attractive
  • 24:00 – It all depends on your timeframe
  • 27:10 – Managing your investors’ expectations
  • 31:10 – Look long when everyone else looks short
  • 34:00 – Buying Mastercard and Visa for a bargain
  • 37:00 – The indispensable big tech icon 

Managed Fund
Claremont Global Fund
Global Shares

Never miss an insight

Enjoy this wire? Hit the ‘like’ button to let us know. Stay up to date with content like this by hitting the ‘follow’ button below and you’ll be notified every time we post a wire.

Not already a Livewire member? Sign up today to get free access to investment ideas and strategies from Australia’s leading investors.

........
Livewire gives readers access to information and educational content provided by financial services professionals and companies ("Livewire Contributors"). Livewire does not operate under an Australian financial services licence and relies on the exemption available under section 911A(2)(eb) of the Corporations Act 2001 (Cth) in respect of any advice given. Any advice on this site is general in nature and does not take into consideration your objectives, financial situation or needs. Before making a decision please consider these and any relevant Product Disclosure Statement. Livewire has commercial relationships with some Livewire Contributors.

1 topic

1 fund mentioned

2 contributors mentioned

The Rules of Investing is one of Australia's top investing podcasts. We interview the leading investment minds from Australia and overseas to better understand their processes and philosophy. After launching in October 2017, there have been over...

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.