TOL - 3rd Dec, 2022
Move over Big Tech, these are the new flag bearers of growth investing
The game has changed, but growth investing is alive and well - just with different players in the first 11
Growth investing has ruled the roost for the last decade. If you wanted astronomical gains, Big Tech was the train you needed to be on. It didn't matter which carriage, they were all coupled together.
But all that went belly up this year, with the growth-focused Nasdaq losing roughly a third of its value thanks to inflation, rates and slowing output.
If 2022 has taught us anything, it's that a regime change in markets has arrived with a bang.
In the latest episode of The Rules of Investing, Livewire's David Thornton sits down with Sam Ruiz, a portfolio specialist in the Equity Division at T. Rowe Price. Sam hasn't lost any enthusiasm for growth investing. Instead, he acknowledges that the rulebook that worked so well through the 2010s should be put back on the shelf.
Among many other key insights, Sam believes that the choice between growth and value is not the binary decision many make it out to be. The growth stocks that will excel in this market, and there are many, will share many many attributes with their value-focused cousins.
Topics discussed include the muscle memory plaguing markets, the changing face of growth, and the importance of capital. He digs deep into a widely dismissed traditional sector that he believes could double in the coming years!
Note: This episode was recorded on Monday 28 November 2022.
Timestamps
- 1:30 - Will the multiple mindset continue?
- 4:30 - Dark days for speculative growth
- 5:55 - Prices follow returns and narratives follow price
- 8:20 - Pitfalls of total addressable market
- 10:10 - Growth companies fed off multiples
- 16:30 - Dispersions = opportunities
- 18:40 - Don't count out cyclicals
- 21:20 - False dichotomy of growth vs value
- 22:15 - Importance of cash balances
- 28:00 - Hunting for idiosyncratic companies
- 29:00 - Opportunities in emerging markets
- 23:40 - A contrarian view on a dismissed sector
- 32:00 - Fight for money has changed the game
- 33:40 - A Big Tech stock worth its weight
- 36:30 - A Brazilian bank for the bottom drawer.
Managed Fund
T. Rowe Price Global Equity Fund I
Global Shares
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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 150 episodes published - you can access all content on Livewire Markets, Spotify and Apple Podcasts.
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More from The Rules of Investing
To catch-up on previous episodes of the Rules of Investing, click here.
- Christopher Joye: No margin for error for risk junkies craving rate cuts
- Why Ben Clark is taking profits on growth stocks (and where he's putting that money to work)
- The next 10 years in ETF growth could be dominated by this asset class
- Warryn Robertson's guide to picking the best infrastructure stocks on the ASX and abroad
1 fund mentioned
2 contributors mentioned
Livewire Markets
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...
Livewire Markets
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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