MICHEL PIREU: Going against instincts and resisting herd mentality requires discipline
“Whenever I see the vast majority of investors crowded into the same stocks, I am very happy to be on the other side,” says Joseph Boskovich, chief investment officer at Old West Investment Management. “Although at times it can be very lonely.”
You want to be careful not to overpay for high-flying “me too” stocks. “In many cases investors today are mistaking first mover advantages with sustainable competitive advantages,” says Matthew Sweeney at Laughing Water Capital. “Very low interest rates increase the value of cash flows in the distant future. This is just maths, it is impossible to argue with, and for truly wonderful businesses with sustainable competitive advantages, you can pay a very high price today and still realise satisfactory investment results over time...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.