What’s the biggest risk facing your clients at present? How about the biggest risk facing their children? It might not be what you think.
Although there have been significant wealth transfers in the past, this time is different, says Jenny Josling of Orbis Investments. Discover how you can help your clients adopt a long-term mindset for wealth creation, and what’s at risk if they don’t.
Global shares have risen in value almost 180 per cent in Australian dollar terms since 2009 and as a consequence, share valuations look high and the US market appears to be very expensive. However, when you start investigating specific stocks, there is still value to be found if you’re prepared to do the groundwork. Dr. Graeme Shaw of Orbis Investments presents the evidence supporting these two apparently contradictory views. He also details the process Orbis undertakes to identify and tap into undervalued stocks in emerging markets and explains why this sector presents a sweet spot of opportunities for value investors.
In a market that has punished companies for uncertainty, automakers have been pummelled and Japanese manufacturers have fared worse than most. However, this doesn’t mean that these businesses are absent of value. Although Tesla has been dominating news headlines its sales are not matching up to public perception, yet investors are so convinced of the company’s future success they are prescribing it similar value to long established and consistently profitable automakers such as Honda. As Orbis Investments explains, Honda boasts an unblemished record of net profits and although its margins have been depressed over the past few years, a closer look at what drives its profitability shows the idiosyncratic opportunity of this investment.
The decision by many central banks to introduce quantitative easing following on from the global financial crisis has forced investors to look outside of bonds in order to get returns. Many have turned to equities, and in particular to defensive shares with bond-like characteristics. However, nowadays, markets are expensive and defensives are too. Orbis Investments details the rationale behind this and what it could mean for your clients’ returns.
Highly predictable businesses may be able to provide investors with stable earnings forecasts, but they are lacking when it comes to value.
Technology has long been a driving force in both the economy and within households, however in this day and age, technology leaders have been elevated to a celebrity status.
Want your clients to be a part of the next big tech investment story? Watch this exclusive Silicon Valley investor interview to learn what he’s seeing as the next frontier and how you can capitalise.
Get to know Orbis Australia, through the story of the group’s chief executive Jenny Josling, and find out how she combines her passion for communication and finance to educate Australian investors.
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