Where is the value
Clime Asset Management
Where is the value? Over time, share prices converge to intrinsic value and that investors should have a rational process for knowing what a company is worth while having rational inputs on return on equity, capital allocation and risk. The volatility in global equity markets are are historically low and conservative investors who do not overpay for stocks will be the winners of the market. However, with dividend obsessed investors, this has pushed the Australian market to hefty valuations, but there are good stocks out there, including McMillan Shakespeare (ASX:MMS) and ANZ (ASX:ANZ). The dividend obsession in Australia has inflated the share price and valuation of equities. It is the time for investors be cautious, conservative, to know what what companies are worth and if you do buy equities, only buy at a discount to value. (VIEW LINK)
David is responsible for equities commentary and editorial content on StocksInValue. He has over 14 years' experience in equities research, funds management, general investment advice and online publishing.
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