Focus on those companies delivering value to customers

Justin Braitling

Watermark Funds Management

We are in a low growth environment with strong deflationary forces, the companies that will prosper in this environment are those that provide value to their customers. Australia is an expensive place to live and conduct business. Many of our leading companies are struggling because they are generating excessive profits, overcharging and not providing a lot of value for their customers. Gone are the days when incumbents could simply push prices up each year and take advantage of concentrated market positions. The high returns they are generating are attracting new competition, with challengers often employing new disruptive technologies to gain a foothold. We are seeing this play out in grocery retailing, telecom, banking, insurance, media and energy markets. Industry concentration is replicated in the share market, with the largest 10 companies accounting for half of the market by value. I see limited growth prospects for many of these companies. A key reason why we expect low returns from Australian shares in the medium term.

1 topic

Justin Braitling
Chief Investment Officer
Watermark Funds Management

We are active, high conviction investors in Australian shares. As an absolute return manager, Watermark offers a proven alternative to traditional institutional funds.

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.


Sign In or Join Free to comment