Panic on slowing Chinese growth blinding investors to less obvious opportunities and risks
Don’t confuse momentum with value, or low volatility with quality. As concerns about global growth spark selling across commodity-sensitive markets, it’s more important than ever for investors to avoid a herd mentality. And the latest turn of events on the geopolitical front has only increased risks to investors who respond to the wrong cues. There are always good opportunities on offer, but investors must not confuse momentum with value, or low volatility with quality. It’s rare to be able to buy a great business at a good price. When such opportunities do arise, it’s usually due to mis-pricing resulting from irrational extrapolation around changes in the operating environment. No matter what the turmoil and upheaval, the only way to combat being swept along by the tide is through independent thinking and, when the objective evidence supports it, taking a contrarian view. Read full article at (VIEW LINK)
Jacob Mitchell is Antipodes’ chief investment officer. He is an award-winning fund manager, with more than 25 years' experience investing in equity markets. Jacob founded Antipodes in 2015 after deciding to leave Platinum Asset Management where he...