Sell-offs are a buying opportunity. Don’t get off the train

The Rules of Investing

Livewire Markets

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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The Rules of Investing is one of Australia's top investing podcasts. We interview the leading investment minds from Australia and overseas to better understand their processes and philosophy. After launching in October 2017, there have been over...

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