The Art & Science of Buying Growth Stocks
With the ASX 200 now sitting at a lofty PE of 17.3 (within a whisker of a 14-year high), finding value has become increasingly difficult. Looking at the market average can mask multiples of individual companies trading at even higher levels. Transurban, Bapcor, Altium, and Dominos are trading on 72x, 26x, 30x, and 52x FY17 earnings respectively. Low interest rates and low earnings growth have pushed multiples higher, so is it time to jump into the high-priced stocks, or settle for 'cheap and nasty?' In the latest Buy Hold Sell Thematic, Matthew Kidman from Centennial Funds hosts Prasad Patkar from Platypus Asset Management and Romano Sala Tenna from Katana Asset Management as they look at whether it's worth paying up for quality, and whether money can be made on cheap, low-quality businesses.
4 stocks mentioned
Buy Hold Sell is a weekly video series exclusive to Livewire. In each episode two fund managers give their views 'Buy, Hold or Sell' on five ASX listed companies. Not recommendations, please read the disclaimer and seek advice where appropriate.