Stocks Neat

In episode 29 of Stocks Neat Co-Portfolio Manager Gareth Brown and CIO Steve Johnson discuss several investing maxims, and how these might apply to portfolio positioning in prior and current markets.  Topics covered include cleaning portfolios to include only high conviction ideas, selling when you can, maintaining cash in the portfolio, how to deploy cash in a downturn, and identifying diversity breakdowns that result from cross-sector correlations. Additionally, Gareth and Steve analyse some recent portfolio changes and the driving factors behind these shifts, before responding to a couple of questions sent in from listeners. Listen to the full episode to find out more. "I think you can deploy your cash first and then you can start thinking about recycling from more defensive, resilient businesses into some things that are offering higher prospective returns. Getting increasingly aggressive about that as you go through that part of the cycle.”

In episode 28 of Stocks Neat Co-Portfolio Manager Gareth Brown and CIO Steve Johnson discuss the prospect of price gouging in major Australian industries, the role future Competition Policy has to play, and the potential implications for investors. The topic of competition problems in Australia has garnered increased publicity in recent times, driven by concerns over long-term productivity issues and the more immediate price impact Australian households are experiencing. In this episode, Gareth and Steve discuss local oligopolies in the supermarket, airline and toll spaces, and what future Competition Policy shortcomings could mean for consumers and investors. Listen to the full episode to find out more.“From a business perspective, there have been really good examples of companies [Gillette] pushing the dominant market position and pricing power too far, to the point where they create enough of an incentive for someone to actually enter an industry and become a real competitor."

In episode 27 of Stocks Neat Co-Portfolio Manager Gareth Brown and CIO Steve Johnson discuss the recent performance of small caps and the psychology of investing. Understanding the psychology of ourselves and others can go a long way to helping us navigate through life. Markets and investing is no different. Understanding this can enable us to avoid biases and regulate emotions to make rational and effective investment decisions. In the episode, Gareth and Steve discuss the works of Kahneman and Tversky, and how their own personal experiences of investing have been changed and shaped over time. Listen to the full episode to find out why.“You could make money out of the stock market without ever looking at a balance sheet or PnL if you really understand investing psychology when people are behaving irrationally”

In episode 26 of Stocks Neat Co-Portfolio Manager Harvey Migotti, Analyst Nicholas Plessas and CIO Steve Johnson sit down to discuss the year just passed in markets, most notably a strong rally in uranium and the small cap recovery at the end of 2023.The uranium story grew throughout 2023 with the spot price increasing through the year. This was discussed in detail in Stocks Neat episode 22, where Harvey and Steve explored factors leading to a recovery in this market. Since then, the uranium spot price has continued to rise and has now reached over 100 USD/lbs for the first time since 2007.The small cap recovery towards the end of 2023 came as inflation eased across the US and other developed economies. However, the recovery domestically has been largely limited to profitable small caps thus far.Listen to the full episode to find out more about Steve and Harvey's views on the year.

For our holiday edition of Stocks Neat, Alex Shevelev, Portfolio Manager of the Forager Australian Shares Fund, is filling in for Steve and Gareth and he’s joined by a special guest, Will Lopes. Will is the CEO and Managing Director of Catapult (ASX: CAT) which has been an investment of the Australian Shares Fund for a number of years. With origins in the Australian Institute of Sport, CAT has pioneered the sports wearables space and their product is now used by thousands of teams around the world. Despite the impressive growth seen by CAT, Will believes there is significant room to continue growing the business. Listen to the full episode to hear how CAT is helping professional sporting teams reach their full potential using data analytics and where the business sees the opportunity from here.“There is still about 80% of the market that has yet to be penetrated. While we're the leaders, we continue to find really, really healthy growth within that space today.”

In the latest episode of Stocks Neat, Steve Johnson and Harvey Migotti discuss what they learned on their recent trip to the US and Japan. Their trip started in Chicago at an industrials conference, which gave the pair a  temperature check on what is happening in the US economy. Then, Steve and Harvey visited Tokyo to meet with a few companies undergoing transformational changes in the IT space. Listen to the full episode to get their insights from their recent trip abroad. 

In episode 23 of Stocks Neat, Co-Portfolio Manager Gareth Brown and CIO Steve Johnson sit down to discuss the opportunities available for investors in the current interest rate environment, following our CIO Letter, "Reasons to welcome the death of TINA”.In October, yields on US Government 10-year bonds hit 4.98%, a level not seen since the mid-2000s. With rising yields has come weakness in equity markets as investors take advantage of risk-free returns. So does the death of TINA mean disaster for equity markets? You might certainly think so. For Steve and the Forager team, however, we feel far more comfortable with TINA in the ground.Listen to the full episode to find out why.“We are living in a world where capital has some element of scarcity to it, and people are making sensible decisions about where to allocate capital and what businesses get it.”

In episode 22 of Stocks Neat, Co-Portfolio Manager Harvey Migotti and CIO Steve Johnson sit down to discuss the growing interest in uranium, with the spot uranium price up almost 10% since the start of August and 27% so far in 2023.It has been a tough period for uranium investors over the last few years, with no new mine supply and rock bottom prices, investment in the sector had fallen to an all-time low. However, due to a number of factors, including the increased acceptance of nuclear energy as a cleaner and safer form of energy, it seems like things are finally starting to go right in this space. Forager identified an attractive setup for uranium back in 2021 and has been invested in the sector since, but what do Steve and Harvey think is in store for the sector from here? And what is their preferred way to get exposure to this theme? Listen to the full episode to find out. 

In the latest episode of Stocks Neat, Steve and Gareth discuss the recent news surrounding the GLP-1 inhibitor drugs taking the world - and stock markets - by storm. Originally used to treat Type-2 diabetes, clinical trials have shown GLP-1 drugs may be highly effective in causing weight loss. While the most common form of the drug requires regular injections, Steve believes that the forthcoming oral version could be a "game changer" for the future of health. But are GLP-1's really a magic pill for weight loss? And how do we think about the future of portfolio companies like ResMed or Viva Leisure in light of this news? Listen to the podcast to find out. 

In episode 20 of Stocks Neat, Co-Portfolio Manager Gareth Brown and CIO Steve Johnson sit down to explore the global economic outlook, its goldilocks nature, and its implications for investing.Switching from their usual whiskey, Steve and Gareth opt for a coffee as the conversation kicks off with a reflection on the past year's positive investment returns, despite being a year marked by market scepticism and uncertainty. They explore the highlights and lowlights and reiterate an ongoing focus on smaller cap companies, given the potential for these to pay off in a relative sense over the next five years.Steve and Gareth follow on with a deep dive into the enigmatic world of housing markets, interest rates, and their far-reaching economic impacts. They discuss the surprising resilience of house prices amid rising interest rates, exploring various factors influencing this phenomenon. They share their perspectives on the economic recovery and its potential impact on different industries and stocks. We want to extend our apologies for the slight delay in recording July's episode, which is attributed to a bustling end to the financial year and the Forager Roadshow. Watch it here in case you missed it.You can also find us on:Twitter - @ForagerFundsFacebook - Forager Funds Management LinkedIn - Forager Funds ManagementInstagram - Forager_FundsFor regular videos, investment insights, and fund updates, visit www.foragerfunds.com.

In the latest episode of Stocks Neat, Co-Portfolio Manager Gareth Brown joins CIO Steve Johnson to shed light on the commercial property industry and the broader issue of unlisted assets, particularly focusing on Australia's super funds and their refusal to recognise the real value of some of their unlisted assets.The second topic they explore is the current bull market, dubbing it the "bull market that nobody believes in," highlighting the lack of enthusiasm despite statistical evidence of its existence, especially in the larger tech companies in the US. The conversation touches on the remarkable rise of artificial intelligence and its current bubble-type behaviour, using NVIDIA as an example to explore the implications of high valuations relative to earnings.Gareth and Steve also touch on inflation and its impact on the economy, mentioning positive developments out of the US, with Australia likely six months behind, given the persisting labour pressures. Tune in and join Steve and Gareth as they try a locally made American Pale Ale by Batch Brewing in Marrickville, Sydney.Show Notes:Joel Greenblatt podcast (mentioned by Gareth) - IC Interviews: Joel GreenblattThe Economist article on San Francisco - Downtown San Francisco is at a tipping-pointYou can also find us on:Twitter - @ForagerFundsFacebook - Forager Funds Management LinkedIn - Forager Funds ManagementInstagram - Forager_FundsFor regular videos, investment insights, and fund updates, visit www.foragerfunds.com.

After some time on the sidelines, Co-Portfolio Manager Gareth Brown is back in the hot seat, joining CIO Steve Johnson for the latest episode of Stocks Neat as they delve into lessons from the recent Berkshire Hathaway meeting.They reflect on the meeting’s evolution over decades, how size has impacted investment decisions and the increasing conservatism in Berkshire Hathaway's investment strategy.Additionally, Steve and Gareth revisit a topic previously explored at the beginning of the year - the underperformance of small-cap stocks. They examine the current valuation differential between small and large-cap stocks, with relative valuations for US small caps at their lowest levels on record. They shed light on what this means for investors and discuss the potential for a change in sentiment towards small-cap stocks as we enter, and ultimately emerge from, any recession.According to recent research from Global Alpha Capital Management, small caps tend to underperform going into a recession. But that underperformance typically stops right around the onset of a recession. From that recessionary onset, small caps have outperformed large caps over the following 3-4 years in all 6 US recessions for which the company had data. Pour yourself a glass of whisky and join Steve and Gareth as they explore these topics while sipping on a glass of Super Nikka Japanese Whisky.Show Notes:Stocks Neat episode on small caps - The contrarian case for small-caps in 2023Steve's recent Livewire article - Why a recession might be needed for small caps to workGlobal Alpha article - Small cap is backYou can also find us on:Twitter - @ForagerFundsFacebook - Forager Funds Management LinkedIn - Forager Funds ManagementInstagram - Forager_FundsFor regular videos, investment insights, and fund updates, visit www.foragerfunds.com.

Co-Portfolio Manager Harvey Migotti joins CIO Steve Johnson as they delve into the world of American investing in the latest episode of Stocks Neat. Harvey shares his insights on the critical lessons learnt from investing in the US market over his career, including the high liquidity and capital allocation priorities and how competitive the investor landscape is over there.They explore why the US economy has outperformed other markets over time, with $100 invested in the S&P 500 in 1990 worth about $2,300 today versus only $510 for the same amount invested in an index of the largest rich-world stocks excluding American equities over the same period.Whilst sipping on a glass of Starwood Nova single malt whisky, they wrap up the podcast discussing all the factors contributing to making America one of the most dynamic, productive and attractive markets to investors.Show Notes: The Economist Article - America's economic outperformance is a marvel to beholdYou can also find us on:Twitter - @ForagerFundsFacebook - Forager Funds Management LinkedIn - Forager Funds ManagementInstagram - Forager_FundsFor regular videos, investment insights, and fund updates, visit www.foragerfunds.com.

In episode 16 of Stocks Neat, Co-Portfolio Manager Gareth Brown joins CIO Steve Johnson, all the way from London, to delve into the Silicon Valley Bank bankruptcy and the broader issues of regulation, moral hazard, and the importance of creative destruction for economic growth.Steve and Gareth explore the issues of solvency and liquidity in the banking industry and the problem of duration mismatch caused by investing short-term deposits into long-term assets. They discuss the importance of counterparty risk for investors and emphasise the need to consider where your money is, who owns the assets, whether there is a small probability that something can happen with dramatic consequences, and whether measures can be taken to mitigate these risks.Show Notes: Steve's Livewire article on the topic - Why monetary madness needs to be banished for goodYou can also find us on:Twitter - @ForagerFundsFacebook - Forager Funds Management LinkedIn - Forager Funds ManagementInstagram - Forager_FundsFor regular videos, investment insights, and fund updates, visit www.foragerfunds.com.

In this episode of Stocks Neat, Co-Portfolio Manager Harvey Migotti joins CIO Steve Johnson to discuss the recent January rally and what it could mean for future returns. They also share insights on how investors can protect themselves from being too conservative and missing out on potential gains.Special guest Liam Shorte, @SMSFCoach on Twitter, then joins the podcast to further explore this topic. He discusses portfolio construction principles and tools investors can use to navigate tumultuous stock markets.They discuss the typical behaviour of investors during market highs and lows and share some client success stories and anecdotes to illustrate the benefits of regular rebalancing, dollar cost averaging, and dynamic bands in portfolio construction.We'd love your feedback. If you like what you’re hearing (and what we're drinking), be sure to follow and subscribe - we're doing this every month. Show Notes:10-Year Anniversary of the Forager International Shares Fund: Reflections and Plans for the FutureGareth's TweetSteve's book recommendation: Chip War by Chris Miller You can also find us on:Twitter - @ForagerFundsFacebook - Forager Funds Management LinkedIn - Forager Funds ManagementInstagram - Forager_FundsFor regular videos, investment insights, and fund updates, visit www.foragerfunds.com.

In the latest episode of Stocks Neat, Steve Johnson is joined by Senior Analyst Chloe Stokes as they delve into the topic of market short-termism. They discuss notable examples of corporate blunders, including the struggles of Walt Disney and the potential threat of ChatGPT (an AI-driven natural language processing tool that has grown in popularity recently) to Google. Co-Portfolio manager of the Forager International Fund, Harvey Migotti, also brings to the table a past corporate blunder that he analysed several years ago.To wrap up the episode, Chloe reflects on her five years at Forager, sharing her greatest investment success, biggest mistake, and most valuable lesson. We'd love your feedback. If you like what you’re hearing (and what we're drinking), be sure to follow and subscribe - we're doing this every month. You can also find us on:Twitter - @ForagerFundsFacebook - Forager Funds Management LinkedIn - Forager Funds ManagementInstagram - Forager_FundsFor regular videos, investment insights, and fund updates, visit www.foragerfunds.com.

In the latest episode of Stocks Neat, which is our final episode of 2022, Steve and Gareth are discussing small-cap stocks and why they might be an interesting place to be investing in 2023. Small-caps have been hit harder than the rest of the market, so many are already looking very cheap as we head into an expected recession. There is no new whisky tasting this time, but Gareth and Steve recap their favourite bottle from previous episodes.Harvey Migotti, co-portfolio manager of the Forager International Fund, joins Steve for a deep dive on Yeti, one of the small-cap stocks in the fund portfolio, and why they believe this is a great business to own. Make sure you don’t miss this interesting discussion.We'd love your feedback. If you like what you’re hearing (and what we're drinking), be sure to follow and subscribe - we're doing this every month. You can also find us on:Twitter - @ForagerFundsFacebook - Forager Funds Management LinkedIn - Forager Funds ManagementInstagram - Forager_FundsFor regular videos, investment insights, and fund updates, visit www.foragerfunds.com.

In the latest episode of Stocks Neat, Steve and Gareth talk all things M&A. They discuss the best and worst deals they have seen, as well as what to look out for when assessing whether a merger or acquisition will have long-term success.As a first for Stocks Neat, we have a guest interview. Grant Webster, CEO of Tourism Holdings New Zealand, is in the middle of a merger right now, with Australia’s Apollo Tourism and Leisure. Grant gives some fantastic insights from the deal, plus shares what his favourite whiskey is… that Steve and Gareth decide not to taste! Instead they go for “Monkey Shoulder”, which is a blend from Speyside, Scotland.We'd love your feedback. If you like what you’re hearing (and what we're drinking), be sure to follow and subscribe - we're doing this every month. You can also find us on:Twitter - @ForagerFundsFacebook - Forager Funds Management LinkedIn - Forager Funds ManagementInstagram - Forager_FundsFor regular videos, investment insights, and fund updates, visit www.foragerfunds.com.

In this episode of Stocks Neat, Steve and Gareth talk about how the tech bust has finally hit the likes of Alphabet, Microsoft and Meta, with some very low growth rates coming from these tech giants that have outperformed for decades.They also chat about the impending Musk takeover of Twitter, including the open letter of demands written by Twitter employees, and whether they think it will have an impact on Musk’s plan to fire a significant percentage of the workforce (spoiler alert - they don’t). This is all washed down with Oban Single Malt whisky from Oban, Scotland.We'd love your feedback. If you like what you’re hearing (and what we're drinking), be sure to follow and subscribe - we're doing this every month. You can also find us on:Twitter - @ForagerFundsFacebook - Forager Funds Management LinkedIn - Forager Funds ManagementInstagram - Forager_FundsFor regular videos, investment insights, and fund updates, visit www.foragerfunds.com.

In this episode of Stocks Neat, Steve is joined by Alex Shevelev, Senior Analyst on the Forager Australian Shares Fund, to discuss the potential decline of consumer spending as mortgage payments and non-discretionary price rises begin to bite, and how the consequences of this might affect some businesses more than others. They also consider common themes companies have been experiencing in the reporting season just past, as well as the effect of the current environment on a few stocks held in the portfolio.This is all discussed whilst sampling a Clare Valley “Forager” Shiraz. Tune in to find out more.We'd love your feedback. If you like what you’re hearing (and what we're drinking), be sure tofollow and subscribe - we're doing this every month.You can also find us on:Twitter - @ForagerFundsFacebook - Forager Funds ManagementLinkedIn - Forager Funds ManagementInstagram - Forager_FundsFor regular videos, investment insights, and fund updates, visit www.foragerfunds.com.