Drew Carter hosts four PMs (Michael Corty¸ George Metrou, Matthew Coffina and John Owens) to discuss views on evaluating and selecting stocks
• The PMs present their respective strategies, varying from all cap equities, focus on high-quality businesses as well as income-oriented and growth-oriented strategies.
• For long term investing, cash flows, sustainability and competitive advantage for the next 5/10 years are all key. Looking at the long term can eliminate noise within the market, especially when focusing on the intrinsic value of the firm.
• The main purpose for LT investors is buy and hold, not monetize from continuous buying and selling of the stock. Any selling should be based on a downgrade to the intrinsic value. But this intrinsic value isn’t static. A company may seem expensive today, but future growth matters.
• For an investor looking for a PM to invest their money choose one that is like-minded and where the strategy will fit their financial goals. The mistake of many investors is that they select a strategy primarily based on near-term returns.
Why does this matter? Predictions for fresh all-time highs in the S&P this year are at odds with a slowing US economy and recent signs of weakness in the labour market. A buoyant equity market will also become centre stage for Trump’s re-election bid.
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