Investors remain nervous after the massive sell off in February and March, but Matthew Kidman from Centennial Asset Management says that any sell off (such as we've seen in the week since this was recorded) should be treated as a buying opportunity.

"If the market does come away in September, use it as a buying opportunity. Now is not the time to get off the train. Now is the time to buckle in, ride a few bumps out, and we're gonna go again."

In this episode of The Rules of Investing podcast, we discuss the curious origins of Buy Hold Sell, why investors should treat any sell off as a buying opportunity, and we get his view on a range of Aussie small caps, including Ooh!Media, Adairs, and iCar Asia.

Time stamps:

  • 1:44 Matthew’s experiences with Livewire and the origins of Buy Hold Sell
  • 7:12 Career beginnings as a financial journalist and the pathway to becoming a fund manager
  • 10:13 – Matthew’s investment strategy: Identifying early growth pathways among small caps
  • 14:35 – What makes a good fund manager?
  • 17:13 – The most significant changes in his approach to investing since joining the industry
  • 19:19 – Catalysts for a switch in valuation methodologies
  • 20:43 – Are we currently in an extended bear market rally or completely new bull market?
  • 23:39 – The importance of practicing caution while maintaining confidence in the market
  • 25:47 – Curious trends in the discretionary retail industry during a recession
  • 28:50 – Notable retail players that offer compelling long term buying opportunities
  • 30:23 – The key stocks on Matthew’s watchlist
  • 33:14 – The likeliness of a vaccine and the stocks set to benefit most
  • 38:03 – Recessionary trade-offs - job losses vs. reduced cost base
  • 39:30 – Matthew answers our 3 favourite questions 


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ANDREW COLE

I disagree with Mathew Kidman. The only reason to stay in shares is to have a punt as there is no where else to invest. GDP is down 15-20% globally with no real drop in share prices. Trump won't leave. A vaccine may arrive at the same time which he would secure solely for Americans driving up world-wide tensions. With all this uncertainty, share prices 20% overvalued and a traditionally wobbly October on the way - I'm now 60% cash!

Brett Coleman

Last bit of advice was probably the most useful; you learn as you go and real money even the small amounts in my case sure focuses your attention, accelerates that learning. Neil Gaiman in an interview (writer absolutely nothing to do with finance) said that when he started he was hopeless, a really terrible writer but he had an inordinate amount of self belief and you know what he called that future great writer into being