Have Australian investors mistaken their strategy all these years? As markets emerge from the “Corona Crash”, it’s evident that high growth stocks continue to be the best performers. For those expecting a great rotation whereby cheap, dividend-paying businesses would finally be prized for their cashflow generation in an uncertain economy; that theory never materialised.
To quantify this point, a recent study found that software stocks worldwide gained 21.41% from 14 February to 12 June. Meanwhile, capital-heavy banks, commodities, and industrial businesses – the backbone of domestic portfolios – are down ~25% (see below chart). That’s an outperformance gap of over 40%. This begs the question: should investors change tack and load up on the Afterpays and Altiums of the world?
Here, Ben Clark of TMS Capital and Roger Montgomery from Montgomery Investment Management discuss this topic and share their approach to growth investing as well as 7 stock ideas offering growth at a reasonable price.
Visit Livewire Markets to access the podcast and edited transcript for this episode.
Note: This episode was filmed on 1 July 2020.
5 all-weather stocks
Is growth at a reasonable price possible in 2020?
Buy Hold Sell: 5 stocks ready to take flight
Buy Hold Sell: 5 bulletproof growth stocks
Stars and gripes: 2 standout stocks and a sector to avoid post US election
Buy Hold Sell: 5 stocks sailing on structural tailwinds
Buy Hold Sell: 6 Stocks for 10 years
2007 highs in sight, can it beat beaten and how to buy in
Buy Hold Sell: 5 ex-20 stocks on a high
Buy Hold Sell: 5 Livewire reader requests
4 beaten down sectors (and if now's the time to buy)
Buy Hold Sell: 7 stocks for offence and defence
Buy Hold Sell: 5 of the most traded stocks
Building a sustainable income portfolio
Buy Hold Sell: 6 sustainable dividend stocks
Buy Hold Sell: 5 ETFs for a strong core
Buy Hold Sell: 5 quality small caps winning market share
Tips for using ETFs in an investment portfolio
Rotate or stay? Playing the small cap rally’s next phase
Buy Hold Sell: 7 ETFs exposed to structural growth themes