Magellan: Resilient portfolios through global investing
Prior to the financial crises, the ASX 200 had outperformed the MSCI World. However post-crisis, this has since changed with the ASX 200 underperforming global markets.
Why is this the case?
This is because the Australian market is very skewed. Investing in the ASX means you’re making two concentrated bets; one on China driven by resources, and the other on the domestic economy driven by financials. What this means is potentially missing out on attractive opportunities in areas like consumer goods and IT.
Outstanding companies are those that are sustainably able to exploit competitive advantages in order to earn attractive returns on capital. Magellan believes that a portfolio of these businesses purchased at a discount to their intrinsic value, is the best way to achieve their objectives of generating attractive risk-adjusted returns over the medium to long-term.
In the presentation below, Stefan shares with you his checklist for selecting high-quality companies, the two biggest risks he sees in the market today, and how he has positioned his portfolio accordingly.
Access the slides here
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