02 Oct Future Proofed Portfolios need Growth Equities
Munro Partners Growth Equities Interview with PortfolioConstruction Forum
2 October 2018
In this podcast and presentation, the PortfolioConstruction Forum interviews Munro Partners’ Chief Investment Officer, Nick Griffin, about growth investing as an essential means to future proofing an investment portfolio.
Investing in equities and following the index then by definition, an investor is investing in growth. However, investors should learn the lessons of history. When powerful structural changes occur, it creates very divergent paths for different companies (even in the same industry). Structural growth companies can easily grow into their higher near-term valuations, while stocks trading a ‘cheap PEs’ but on the wrong side of structural change are seldom protected by their valuation. Looking beyond near-term valuation multiples can help identify the next great winners and also help avoid the losers. Without growth investing, a portfolio is only focusing on only one side of the equation.
Equity investors should spend less time on macroeconomics and near-term valuation measures, and more time considering the structural changes which will create the winners of the future. A global approach is increasingly required, as digitalisation enables the dominance of a small band of fast-growing companies.
For the full podcast and presentation, please visit the Portfolio Construction Forum
PortfolioConstruction Forum is Australia and New Zealand’s leading specialist, independent, provider of investment continuing education and certification for portfolio construction practitioners, enabling better quality portfolio construction knowledge and skills.