Bob Desmond: We’re finding value everywhere
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.
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
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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...
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