Buy growth, but don’t ignore the price

The Rules of Investing

Livewire Markets

Michael Frazis, Founder and Portfolio Manager at Frazis Capital Partners, is positive about the outlook for equities. Despite the obvious challenges the world faces, a combination of monetary and fiscal stimulus, and economies that are beginning open back up, should present a perfect setup for growth equities. But that doesn’t mean investors can be blasé about what they buy. He warns that in some popular sectors, prices have gotten too high in some names.

“Even in the hottest parts of the market, where there’s companies trading on 25-35 times sales or more, there are companies trading on a tenth of that. I think it’s extraordinarily important now to dodge some of those companies.”

In this episode of The Rules of Investing podcast, we discuss why he's so bullish right now, some new additions to his portfolio over the last two months, and why he was buying Afterpay as the stock fell in March.

Timestamps

  • 2:57 - Michael's background and how it shaped his investing strategy
  • 5:05 - Why he's bullish and why rising interest rates are a risk
  • 8:53 - Will the bifurcation of growth and value stocks continue, or even accelerate?
  • 14:46 - Reconciling companies that consumers love but investors hate
  • 20:12 - Something 'strange' happened that caused Michael to buy Afterpay, why it's one of the most impressive businesses around, and what Tencent may be thinking of doing with it
  • 25:52 - What he sold, mistakes made and additions to the portfolio
  • 29:59 - Why the market is mispricing Disney (NYS:DIS)
  • 34:30 - Why Tesla (NAS:TSLA) reminds Michael of Apple (NAS:AAPL)
  • 37:25 - Michael responds to our three favourite questions
Books discussed:

Stocks discussed:

  • Afterpay (ASX:APT)
  • Alteryx (NYSE:AYX)
  • Progyny (NSDQ: PGNY)
  • Catasys (NSDQ: CATS)
  • Livongo Health (NSDQ: LVGO)
  • Disney (NYS:DIS)
  • Tesla (NAS:TSLA)
  • Apple (NAS:AAPL)

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This article is for informational purposes only and should not be considered financial advice. The article may contain the views or opinions of third party contributors to Livewire Markets. These contributors have not considered your objectives, financial situation, or needs. The information in this article should not be relied upon as a substitute for personal financial advice. Livewire Markets recommends that you seek independent advice before you apply for any financial product or service. Livewire Markets is exempt from requiring an AFSL under ASIC Regulatory Guide 36, section 66.

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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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