Just like in life, an investor’s early experiences can’t help but shape the way they see the world. For Anton Tagliaferro, founder and Investment Director of Investors Mutual, one of those early formative experiences was the infamous ’87 stock market crash. After witnessing the events in New York the night before, Anton and his team tried to guess how far the ASX would fall that day, but even the most bearish analyst in the group was not prepared for the 25% crash that came when the market opened.
"On the day of a crash such as that, everything falls. The good, the bad, and the ugly. But when sanity prevails and the panic subsides, people do go back to the stock market, but it’s the good stocks that recover. A lot of the crap, all the froth and bubble, which in the boom was in the headlines all the time, a lot of that stuff goes to nothing.”
In the latest episode of The Rules of Investing podcast, we discuss his current views on Australian banks and retailers, how he first developed IML's investment philosophy, and why he doesn't like the ‘value versus growth’ argument.
- 2:26 - The major influences behind the IML philosophy
- 6:41 - Anton's experience of the October 1987 stock market crash
- 10:37 - Growth vs value? There's no such thing!
- 13:10 - The essential characteristics of a high-quality company
- 15:27 - Is there value in the retail sector?
- 18:03 - Why he likes Myer
- 20:44 - How longer rates could affect the banking sector
- 24:58 - A confusing time for investors
- 28:15 - Anton answers our three favourite questions
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Thank you again Patrick. Find your guests very interesting and I love your questions. You always seem to ask the ones that are o my mind. I also like these elders of the investing game. They have a lot of wisdom to pass on to us amateurs, especially now in these challenging times.
Patrick - why wasn’t he /Anton questioned or challenged on the poor performance of QVE ?
Hi Michael, I don't really see value in taking that approach with my guests as I don't think it reveals any useful information. All managers go through periods of underperformance, they generally explain the reasons for this in depth in their monthly and quarterly updates. Taking such an approach can create a hostile environment, which makes it harder for me to get useful information from the guest that can benefit the listener. There are plenty of great journalists out there who are happy to ask the hard questions, but my goal is to provide insights, education, and hopefully, some entertainment.