Working out which businesses will survive and thrive in an age of digital disruption is far more important than worrying about whether shares are cheap or not, Nick Train tells Money Observer. Indeed, says the fund manager, the idea of defining stocks as "quality growth" or "cyclical value" is outdated "in the future all companies will be internet companies".
Train isn't saying that money doesn't matter. "In the end, everything hangs on what is the true value of a corporation's future cash flows, discounted back to today's intrinsic worth," he notes in Portfolio Adviser. "It's just that during the 21st century to date, what looked expensive yesterday has turned out to be in fact far cheaper than most of us could imagine."
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