James Miller from Firetrail Investments argues there are just two or three things that really matter when it comes to assessing any stock on the ASX. “A company like Wesfarmers for example, a big conglomerate. If you just get Coles right and Bunnings right, you’ve got nearly 75% of the earnings for that business right. So, for every company we distil it into those two or three things that matter.” Miller explains, for long positions to pass the investment process the stock must be ‘cheap’ relative to its history and the team needs to have a high level of confidence in earnings outlook for the next three years. 

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