What we can learn from G8 Education

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Livewire Markets

COVID-19 has wreaked havoc on all our lives and parents in particular have found it challenging. With childcare centres shutting early in the piece, parents were not only working from home but home-schooling. This situation affected the fortunes of G8 Education. It operates 500 centres around Australia and has been hit hard by the pandemic. 

Dr. Suhas Nayak, Portfolio Manager at Allan Gray, says three to five years ago, G8 was flying high but oversupply and COVID has led to its fallen price. “We think the trend in occupancy is higher, although in the short term there are risks around unemployment and what will happen when JobKeeper ends,” he says. 

In this video, Suhas goes deeper into those risks and why he believes that in the fullness of time, the profits will come through.

Want to learn more?

Contrarian investing is not for everyone, however there can be rewards for the patient investor who embrace Allan Gray’s approach. To stay up to date with Suhas's latest thinking, hit the follow button here or contact Allan Gray using the button below.

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