|
When it comes to investing, many know the value in identifying stocks with a big moat. Giants like Buffett and Munger maintain that this has been a crucial part of their success, but how can we identify one of these moats in the making?
0 Comments
This week we continue to look at investing in needs and not wants, highlighting two stocks in our portfolios. Following the volatility in markets this year we have been extensively reviewing our portfolios and looking for companies that have steady earnings, inflationary protection and a service/product that is a necessity and is immune to the central banks attack on consumer spending. This week we continue looking at needs not wants; companies that provide critical services that people need rather than want. We are using this theme to highlight companies that are best positioned for inflation with some even set to benefit from higher interest rates. We will be diving into the insurance industry and highlighting one company in particular. This week we return to the recycling theme touched on a couple of weeks back. Last time we spoke about an Australian recycling company benefiting from industry tailwinds and participating in the circular economy. This time we dive into the fundamental problems we face in recycling plastic and highlight a company that is looking to revolutionise this through the use of digital watermarks. Over the past few years investors that owned the much-coveted “FAANG” stocks would have been amongst the most popular people in the room. Fast forward to today and the NASDAQ is down -26% YTD; Facebook, now known as Meta Platforms (FB.NASDAQ), alone is down over -40% YTD. Growth stocks went on a tremendous rise to the top post-Covid however in the current environment, where fear is winning the arm wrestle against greed, those same growth stocks are being sold off heavily. So, where to allocate? This week we will be looking at the US cannabis industry and talking about a stock in the ‘picks and shovels’ side of the industry, a real blue jeans to miners story. US cannabis stocks have been in a relentless bear market, hovering near all-time lows despite the industry showing huge growth. This week we will be writing about an underappreciated metal that is crucial to the energy revolution and shift to electrification. Regardless of your position on the timeframe, just about anyone could tell you that electric vehicles are the way of the future. The real question is do we currently have enough supply of the crucial commodities needed to develop and produce these vehicles on a mass scale? This week we will be visiting the world of semiconductors and looking at why the equipment providers may be a compelling way to gain exposure to the sector. We are currently in the midst of a massive global shortage of semiconductors at a time when demand is skyrocketing as a result of aggressive digitisation and the rise of tech like electric vehicles. The stock in question is a SATS (Semiconductor Assembly and Testing Services) company. This week we look at a contracting company that provides infrastructure services to the energy industry. The company should also be well positioned to benefit from the shift toward clean energy. Contracting companies typically trade at low multiples due to their low margins and cyclicality, the stock we are covering is growing revenues at 25% and is seeing their renewables division doubling YoY. This week we look to conclude the series with some insights into two more pharma companies that we believe could make for an interesting addition to investor portfolios. Both are potentially high growth and arguably further up the risk curve (if one is to define it by traditional valuation metrics). This week we will be visiting a stock in our Global Mobility portfolio that is poised to benefit from the themes of electrification and autonomy. While these thematics are well known and are well covered, most investors look to only a few select stocks to benefit from the trends (i.e. Tesla or their favorite lithium stock). Our Global Mobility portfolio focuses on finding the companies that are forming the ecosystem around these core thematics, the companies that will benefit from these trends but are perhaps less known to the everyday investor. This week we continue on to the final in the pharma series by looking at specific companies that we feel are worth at least a review by investors. As elucidated last time, the categories that offer the most lucrative long-term opportunities are Oncology, Diabetes and Cardiovascular. It is with this in mind that we look at prominent or interesting players, they are DexCom, Bristol-Meyers Squibb, Moderna and Fate Therepeutics. The last two we shall leave for next week given the complexity of the issues on hand and the nuance required in explanation. This week we begin a new series centred around the global pharmaceutical sector with a particular eye to ascertaining where the opportunities and risks may be. Going back to our broader macro views, in particular around inflation, this sectoral allocation is one that we feel may have legs. This week we are tackling the subject of rare earths, their applications for electric vehicles and how TAMIM’s Global Mobility strategy aims to benefit. The rare earth elements are composed of a group of seventeen metals that are each just as hard to pronounce as the next. They are becoming increasingly vital to a carbon free economy with applications for both electric vehicles and electrical efficiencies. This week we will be talking about one of our three pillars and a key theme in our Global Mobility portfolio; the pillar centred around electrification of vehicles and a stock we believe is well-positioned to capitalise on the significant increase in lithium demand. This week we will be writing about two of the heavyweights on the NASDAQ, Amazon (AMZN.NASDAQ) and Alphabet (GOOGL.NASDAQ). While these stocks are always in the headlines, we believe there are parts of these businesses that are stuck in the shadow of their parent company and aren’t getting the attention or credit they deserve and, as such, any value when it comes to the market. GOOGL and AMZN are best known for their search engines and marketplaces but what people may not see is that they are both making transformational advancements in the autonomous vehicle industry. This week we look at two more REIT’s, this time both US based. The first is a global footprint of industrial and logistics facilities, Prologis (PLD.NYSE), while the second focuses on self storage, Public Storage (PSA.NYSE). This week we look at two more REIT’s, this time both EU based. The first is Frankfurt listed, LEG Immobilien (LEG.FWB), while the second is dual-listed, VGP Group NV (VGP.BR). This week we will be talking about two stocks in our Asia Small Companies portfolio. This portfolio focuses on investing in small companies (up to $10bn market cap) predominantly in north Asia due to the increased levels of governance. Asian markets are typically unloved, especially China and Japan, and this opens up a large opportunity to gain exposure to misunderstood companies that have big growth potential. More recently, there have been improving levels of governance across Asia with a greater emphasis on delivering shareholder value. In order to achieve full autonomy in driverless cars we will need to see much more then just advanced tech in-vehicle, we will also need a significant step up in infrastructure in the cities and spaces around the vehicles. This week we talk about a second stock that is well positioned to benefit from the rollout of 5G and the need for connectivity in infrastructure to support the emerging autonomous driving sector. In a previous article, we gave a rationalisation for why, despite seemingly irrational valuations, we remain overweight equities here at TAMIM. This week we continue to explore this but with a caveat, that is the potential for inflation and the reasons why it might pay to be more discerning in your asset allocation. And what are some of the businesses we have invested in to take advantage?
Kevin Smith, of Delft Partners and portfolio manager of the TAMIM Asia Small Companies Fund, highlights one of the stocks in the Asia Small Companies portfolio.
Kevin Smith, of Delft Partners and portfolio manager of the TAMIM Asia Small Companies Fund, highlights one of the stocks in the Asia Small Companies portfolio. Japan Aviation has been a star performer recently with the portfolio up +13.5% CYTD.
Robert Swift takes a look at why Advantest's share price jumped 50% in July and what aspect in particular provides a blueprint for future investments. This article was prompted by the announcement that Verizon was selling Tumblr for a few million dollars. Tumblr is/was a social networking site that allowed users to blog personal stuff to each other. A couple of years ago Tumblr was reckoned to be worth $1bn.
Kevin Smith, of Delft Partners and portfolio manager of the TAMIM Asia Small Companies Fund, highlights one of the stocks in the Asia Small Companies portfolio, Open House (3288.TYO). Open House is a Japanese real estate company that trades on a single digit P/E ratio yet delivers a revenue growth rate of 30% and profit growth of 16%. Open House has both a strong brand and strong market share of single-family housing in key Japanese cities. It is taking advantage of the growing trend of smaller Japanese households and is a stock that is worthy of consideration in your international equity portfolio.
|
Stock CommentaryAt TAMIM we are committed to educating investors on how best to manage their retirement futures. Sign up to receive our weekly newsletter:
TAMIM Asset Management provides general information to help you understand our investment approach. Any financial information we provide is not advice, has not considered your personal circumstances and may not be suitable for you.
Archives
August 2022
Categories
All
|
RSS Feed
TAMIM | Equities | Property | Credit
DISCLAIMER
The information provided on this website should not be considered financial or investment advice and is general information intended only for wholesale clients ( as defined in the Corporations Act). If you are not a wholesale client, you should exit the website. The content has been prepared without taking into account your personal objectives, financial situations or needs. You should seek personal financial advice before making any financial or investment decisions. Where the website refers to a particular financial product, you should obtain a copy of the relevant product services guide or offer document for wholesale investors before making any decision in relation to the product. Investment returns are not guaranteed as all investments carry some risk. The value of an investment may rise or fall with the changes in the market. Past performance is no guarantee of future performance. This statement relates to any claims made regarding past performance of any Tamim (or associated companies) products. Tamim does not guarantee the accuracy of any information in this website, including information provided by third parties. Information can change without notice and Tamim will endeavour to update this website as soon as practicable after changes. Tamim Funds Management Pty Limited and CTSP Funds Management Pty Ltd trading as Tamim Asset Management and its related entities do not accept responsibility for any inaccuracy or any actions taken in reliance upon this advice. All information provided on this website is correct at the time of writing and is subject to change due to changes in legislation. Please contact Tamim if you wish to confirm the currency of any information on the website.
magellen, kosec, clime, wilson, wam, montgomery, platinum, commsec, caledonia, pengana, tamim