Five stock tips from the world’s best fund managers
Merryn Somerset Webb reveals five stock tips from top-performing fund managers at the Sohn Conference in London.
More Sohn tips (see the original article here). Eashwar Krishnan of Tybourne Capital looked at the Asian media industry. He talked about the low levels of ad spend in Asia relative to GDP (around 1%) and the very low ad rates (about 20 times less in India than in the US for example). That's despite the fact that consumer spending is rising much faster in Asia than elsewhere.
He expects ad rates to rise at double digit rates "for years"; he is convinced that there is scope for fast rising profits across the sector; and notes too that changes in the pay-TV industry will allow content providers to take more of the total revenues than they currently do.
And the "macro headwinds" in emerging markets just provide a "good entry level". The actual tips included Surya Citra Media, PT Media, and Zee Entertainment Entreprises.
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Later, Mala Gaonkar of Lone Pine Capital suggested Qualcomm for its "steady, thoughtful innovation", strong patent portfolio, exposure to the fast growing smartphone market and high royalty income.
Then Dynamo Capital founder Bruno Rocha gave a great talk about the lack of correlation between economic growth and stock-market returns before tipping AB Inbev, thanks to the fact that its scale makes it very hard to compete with.
This, by the way, is something that a large percentage of the tips focused on companies in duopolies and oligopolies and with infrastructures no one else can build from scratch. Get that combination at the right price, and it is hard to go wrong.
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House prices to crash? Your house may still be making you money, but not for much longerOpinion If you’re relying on your property to fund your pension, you may have to think again. But, says Merryn Somerset Webb, if house prices start to fall there may be a silver lining.
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Prepare your portfolio for recessionOpinion A recession is looking increasingly likely. Add in a bear market and soaring inflation, and things are going to get very complicated for investors, says Merryn Somerset Webb.
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Investing for income? Here are six investment trusts to buy nowOpinion For many savers and investors, income is getting hard to find. But it's not impossible to find, says Merryn Somerset Webb. Here, she picks six investment trusts that are currently yielding more than 4%.
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Stories are great – but investors should stick to realityOpinion Everybody loves a story – and investors are no exception. But it’s easy to get carried away, says Merryn Somerset Webb, and forget the underlying truth of the market.
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Everything is collapsing at once – here’s what to do about itOpinion Equity and bond markets are crashing, while inflation destroys the value of cash. Merryn Somerset Webb looks at where investors can turn to protect their wealth.
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ESG investing could end up being a classic mistakeOpinion ESG investing has been embraced with enormous speed and zeal. But think long and hard before buying in, says Merryn Somerset Webb.
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UK house prices will fall – but not for a few yearsOpinion UK house prices look out of reach for many. But the truth is that British property is surprisingly affordable, says Merryn Somerset Webb. Prices will fall at some point – but not yet.
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This isn’t the stagflationary 1970s – but neither is it the low-rate world of the 2010sOpinion With soaring energy prices and high inflation, it might seem like we’re on a fast track back to the 1970s. We’re not, says Merryn Somerset Webb. But we’re not going back to the 2010s either.
