Edinburgh Partners’ Research Papers
1. Valuing an EquityThe importance of time horizon
Sandy Nairn, BSc, PhD, ASIP, CFAInvestment Partner and Chief Executive
Edinburgh Partners
Summary
n Returnsfromequitiesaredrivenbyfuture,nothistoric,profits
n Forecastingthoseprofitsisattheheartofsuccessfulstockselection
n Ourresearchprocessaimstocapturefive-yearforwardP/Eratios
n Fiveyearscanbeempiricallyshowntobetheoptimalforecastingtimehorizonforequities
n Theprocessworksacrossallmarketsandallperiodssince1970
Introduction
Attheheartofourphilosophyasequity investors liesasimpleproposition:webelievethatthestockmarketisrationalandlogical,butonly–acrucialdistinction–inthelongrun,notintheshortterm.Bythiswemeanthatcompaniesareultimatelyvaluedonthebasisoftheirabilitytogenerateafter-taxprofitsoveraperiodofyearsandthisperiodofyearsextendstocoverthefulleconomiccycle.Ifyoucanbuysharesincompanieswhicharecheaprelativetotheprofitstheyaredestinedto deliver over the long term, it is systematically possible to generate exceptional returns. That is whatourinvestmentprocessisdesignedtoenableustoachieve.
The importantcaveathowever is thatoverperiodsof less than threeyears, sharepricesmoveinwayswhichare,toallintentsandpurposes,random.Youcannotconsistentlymakemoneybypickingstocksyouthinkaregoingtooutperformoversuchashorttimehorizon.Mostprofessionalfundmanagersarepaidtoattemptjustthat,whichiswhythemajorityofactivelymanagedfundsunderperformtheirbenchmarks,asscoresofacademicstudieshavedemonstrated.
Inthispaper,Isetouttheempiricalevidencethatunderpinsourlong-terminvestmentphilosophy,andexplainwhy,givensufficienttime,weareconfidentofachievingaboveaverageandconsistentrisk-adjustedreturnsfromourequityportfolios.Theanalysisisbasedonanexhaustivestudyoftherelationshipbetweenvaluationsandsubsequentsharepriceperformanceoverawiderangeofdifferenttimeperiods.Ourproprietarydatasetcoversalltheworld’sleadingstockmarketsandalltimeperiodssince1970,theyearwhentherelevantglobalmarketdatafirstbecameavailable.
Edinburgh PartnersValuing An Equity 2
Sandy Nairn Investment Partner and Chief Executive March2013
The stock market is rational - but only in the long term.
Theory and Hypothesis
It is intuitivelyobviousthatarelationshipexistsbetweenthevalueofabusinessandthereturnthat itcanearnfor itsultimateowners,theshareholder.Thereisnodisputeinanyinvestmenttextbookthatwhatdrivestheultimatereturntoshareholdersisthelong-termstreamofafter-taxprofits.Thisprinciplewasfirstestablishedmorethan60yearsagobyJamesBurrWilliamsinhisclassic study “The Theory of Investment Value”.
Thereturntoshareholderscomesintheformof(a)distributions(dividendsandsharebuybacks);and(b)capitalappreciation.Thelatterisbasedonexpectationsoffuturegrowthinearnings,whichinturnaredependentonthelevelofretainedandre-investedprofitsacompanycanbeexpectedtogeneratefromitsactivities,appropriatelydiscountedbacktothepresentday.
Itisimportanttonotethatfuturesharepriceperformance,whileitislikelytoberelatedtoacompany’spreviousperformance,isbothintheoryandinpracticedeterminedbythefuturebehaviourofprofits,nottheirpastpattern.Mostpopularguidestostock-pickingmethodsholdoutthepromisethatthereisa‘magicroute’toinvestmentreturnsbasedsolelyonananalysisofacompany’shistoricperformance.Byanalysingsuchvariablesasprice-earnings(P/E)ratios,dividendyieldsandbookvalues,theassumptionisthattheinvestorwillbeabletodiscernfuturevaluewithouttheneedtoforecastexplicitlywhatmighthappeninthefuture.
Thisbeliefismisguided.Theobservedpatternshaveanunfortunatehabitofprovingtobenon-repeatingstatisticalquirks,or–toparaphraseDrJohnsononthesubjectofremarriage–“atriumphofhopeoverexperience”.Manyfallvictimtothedangersofdatamining,thepracticeoffindingwhatappeartobefirmcausalrelationshipsinpastdatathatdonotinpracticepersistintothefuture.
Itistruethatsomecommonsenserelationshipsarediscernibleinthepastbehaviourofstockprices.Forexample,thecheaperstocksarewhentheyarepurchased,thebettertheirsubsequentreturnswillturnouttobe.Butthesegeneralisedfindings,thoughtrueatanaggregatelevel,areoflimitedpracticalvaluewhentryingtopickindividualstockportfoliosfromthethousandsofpotentialinvestmentsatanygivenpointoftime.Aswellasonlyholdingtrueovertheverylongterm,theyarepronetobeingswampedbyshortertermcyclicalinfluences,suchasstyleeffects.Thedangersthatliebehindillusoryhistoriccorrelationsareofcoursethebasisforregulators’insistencethatallinvestmentmarketingmaterialscarrytherubric:“pastperformanceisnotaguidetothefuture.”
The Evidence
Naturalcuriositydrovemetoseeiftherewasanyempiricalevidencetodemonstratetherelationshipbetweencurrentvaluationmeasuresandfuture(asopposedtopast)totalreturns?Ifirstsetouttostudythisissueover20yearsago,whileworkingasananalystandportfoliomanagerforthefamousprofessionalinvestorSirJohnTempleton.SirJohnhadformanyyearsbelievedthatfiveyearswastheoptimaltimehorizonforshareevaluation.Heaskedmetoseewhetherhisintuitionwascorrect.
Myresearchbeganwithanexaminationoftherelationshipbetweenlong-termearningsgrowthandrealisedtotalreturnsoverasinglefive-yearperiodbetween1990and1995.Theresultsshowedthattherewasindeedaclearrelationshipbetweenthetwovariablesatfiveyears,butalso–justasstrikingly–theabsenceofanyrelationshipatalloverperiodsoflessthanthreeyears.
Fiveyearsisindeedtheperiodoverwhichtherelationshipbetweenstartingvaluationandsubsequenttotalreturnsismostmarked.It is not a coincidence that this period also typically covers a full economic cycle.
Sincethen,withmycolleaguesatEdinburghPartners,Ihaverepeatedandextendedthescopeofthestudyonmanyoccasions,totakeinwiderdatasetsandlongertimeperiods.Eachtimetheresultshaveproducedasimilarresult.Thereisastrongandpersistentrelationshipbetween starting valuations and subsequentfive-year returns to shareholders. It isworthemphasising that ineachreiterationofthestudy,thetotalreturntoshareholdersismeasuredinrealterms,toallowfortheimpactofinflation.
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The key is analysing future, not historic, performance.
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Clearly,anysingletimeperiod,likethefiveyearscoveredbymyinitialresearch,wasindicativeatbest.Thefindingsrequirefurthervalidation.Thatinvolvesrigorouslyexaminingdifferentinvestmentcyclestomakesurethattheoriginalanalysiswasnotbiasedbyhavingchosenaperiodthatwasparticularlyfavourabletothehypothesisbeingtested(oneoftheproblemsthatshowupindataminingexercises).Asaconsequence,theoriginalstudywaswidenedprogressivelysoastoincorporatealltheavailabledataforglobalequitiesforeveryyearbackto1970.Inturnthatcreatedtheopportunitytomakeseparatestudiesofhowtherelationshipmight change between companies in different sectors; between different country and regionalmarkets (both developed andemerging);andbetweendifferentmarketcapitalisationranges(fromlarge-captosmall-cap).
Whenback-testinganykindofhistoricaldata,itisimportanttoanalysetheentireuniverseofstocksthatwouldhavebeenavailabletoinvestorsatthespecificstartingpointchosenforanalysis,andnotjustthosestockswhichhappenedtosurvivethroughouttheentireperiodbeingstudied.Theriskotherwiseisthatasignificantdegreeof‘survivorshipbias’isintroducedintothedata.Ashasbeenshownwith,forexample,theanalysisofhedgefundperformanceinrecentyears,failingtoadjustforsurvivorshipbiascanhavea material impact on the results, particularly for returns. Removing the performance of funds that have disappeared or been closed downsincethestartingpointofanalysiscangiveasystematicupwardbiastoreportedreturns.
Theanalysiswehavenowcoversmorethan40yearsofdataandmorethan25,000individualcompanyhistories.Wouldbeingabletoincludemoredatafrombefore1970materiallychangetheresults?Wedonotbelieveso.Thedataweusecovereveryfive-yearperiodsince1970,aperiodwhichincludesexamplesofalmosteveryconceivableeconomicandstock-marketcycle:hyper-inflationinthe1970s,deflationinJapansince1990,periodsofbothstronggrowthandsharprecession,andbothbullandbearmarkets.
Themethodologyofthestudyisasfollows.Foranygivenperiodofhistoricaldata,theactualearningsachievedbytheuniverseofcompaniesbeingstudiedarecomparedtothepriceatwhichthesharesofthosecompaniestradedatoneofanumberofearlierpointsintheirhistory:oneyearbefore,thentwoyearsbefore,thenthreeyearsandsoonupto10years.Thepurposeistoestablishwhatafundmanagerwithperfectforecastingabilityshouldhavebeenprepared,orwouldhaveneeded,topaytoobtainacertainlevelofreturnoverthesubsequentperiod.(Wewillconsiderinasubsequentpaperthebestwaytopredictearningsovertheseforward-lookingtimeperiods).Theimpliedprice/earningsratioattheoriginaldatecanthenbeplottedagainst,andcomparedwith,theeventualreturnthatwasachieved.Forthesakeofcompleteness,returnsarecalculatedinbothlocalandcommoncurrency(USD)andinbothnominalandreal(inflation-adjusted)terms.P/E’sareroundedandaveragerealreturnscalculated.
Valuing An Equity 4
The absence of a relationship up to three years was striking.
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Study Findings
Thestudydemonstratesconclusivelythatthereisaclearandunambiguousrelationshipbetweenfive-yearforwardlookingP/Eratiosandthesubsequenttotalreturnachievedbyinvestors.Thisstrongandpositiverelationshipholdsovereverykindofeconomicandstock-marketcycle,andacrossallsectorsandgeographies.Justasclearfromtheempiricalevidence,andequallyrobustinastatisticalsense,isthelackofanyrelationshipovermuchshortertimeperiods.
Theeasiestwaytoillustratethestrengthoftherelationshipistoplotonachartthetotalreturndeliveredbyarangeofreallifestocksoverfiveyears(shownontheverticalaxis)withtheimpliedfive-yearforwardP/Eratioatthetimethesharesinquestioncouldbebought(thehorizontalaxis).ThedatafromourstudyisvisuallyrepresentedinthestylisedversionshowninFigure1,andunambiguouslysupportsthevalueinvestor’scorebelief:thatthehighertheP/Eratioatthestart,thelowerthesubsequentfive-yearreturn. Note that the study examines total returns, meaning capital appreciation and income return combined.
Figure 1 – Study curve
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Theobviousquestiontheniswhetherthisrelationshipholdswithinthediscretefive-yearperiodsofourstudy.Asanexample,Figure2showstheactualaveragerealreturnsandimpliedfive-yearforwardP/Esforover3,400stocksfrom50countriesoverallsectorsfrom2003to2008.Thedownwardslopingcurveofthegraphisexactlyasexpected.Thegradientisameasureofthestrengthoftherelationship.WiththeexceptionoftheverylowestP/Ebandwherethenumberofdatapointsisverylowandslightlydistortstheresults,thelowertheimpliedYear5P/E,thehigheronaveragetheeventualreturn–or,toputitinsimplerlanguage,thecheaperastockwhenyoubuyit,thegreaterthereturnfiveyearslater.
*Currentprice/Earningspershareinfutureyear5#Total return includes dividends reinvested plus capital changes
Year5realP/E*Source: Edinburgh Partners
5yearrealtotalreturninUSDp.a.(%)
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The higher the year five P/E, the lower the subsequent return.
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Thedottedlinewehaveaddedtothechartmarksthederivedbreakevenpointforinvestorsoverthis2003-08period.Thisline,whichmarksthelevelbelowwhichinvestorsfailtomakeapositiverealreturninthisparticularperiod,crossestheP/Edataataround11.Whatthismeans is that ifyouhadboughtshareswhichwerepricedatmorethan11timestheearningsachievedfiveyearslater,youweremorelikelythannottohavelostmoneyontheinvestment.Payinglessthan11timesfive-yearforwardearnings,ontheotherhand,gaveyouanaboveaveragechanceofmakingapositiverealreturn.Theyears2003-08happentohavebeenaperiodwithoneofthelowestaveragereturns(toillustratejusthowdepressedreturnswere,aP/Eof11overtheentirestudywouldhavegeneratedonaverageareturnof6%,consideredbymanythelong-termaveragerealreturnfrominvestinginequities).Nevertheless,andimportantly,theshapeofthecurveremainsconsistentwiththecurvepresentedinFigure1.
Figure 2 – Valuation and return over 5 years, 2003-2008
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Figure3showsingraphicformthatthesamerelationshipdoesindeedholdforalldiscretefive-yearperiodssince1977.Asbefore,thechartshowstherelationshipbetweentheannualisedtotalrealreturninUSdollars(theverticalaxis)andthefive-yearforward-lookingrealP/Eratio(onthehorizontalaxis)foreachfive-yearperiodsince1977,asdiscoveredbyperfectforesight.ThegreylinethatrunsacrosseachchartrepresentsthemeanrealtotalreturninUSdollarsforallstocksovereachfive-yearperiod.Ithencegivesanindicationofthemarketvaluationfortheperiodinquestion.Onecanseefromthechartsthattheaveragereturnvariedbetweendifferentperiods(notethatthishasbeencalculatedonanequalweightedbasis).
Valuing An Equity
5yearrealtotalreturninUSDp.a.(%)
Year5realP/E
Source: Edinburgh Partners, Thomson ReutersMarketmean Breakevenpoint Valuation return
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A year five P/E of 11 times was the breakeven point for 2003-2008.
Figure 3 – Valuation and return over 5 years, all 5 year periods, 1977-2011
Importantly,theaveragereturnwasconsistentwiththeaveragevaluation.Ingeneral,cheapaveragevaluationstranslatedintohigheraveragereturns,withtheconverseholdingforexpensiveaveragevaluations.To illustratethis,wehaverankedthe30five-yearperiods by their average valuation, separated them into quartiles, and display the average valuation and return by quartile in Figure 4below.Whilstthereturnsvaryaccordingtothe initialmarketvaluation,theyareallconsistentwiththeempiricalrelationshipdescribedearlier.Inotherwords,theempiricaldatadonotsuggestthatmarketswillalwaysreturntofairvalueinanyfive-yearperiod.Whatthedatadosuggestisthatthereturnswillbecommensuratewithwhateverthefive-yearvaluationwas.
Figure 4 – Average valuation and return over 5 years, per quartile of average valuation, 1980-2011
Quartile AverageYear5realP/E Average5yearrealtotalreturninUSDp.a.(%)
1 5.1 22.9
2 8.8 10.6
3 10.8 7.0
4 12.4 5.8
Asistobeexpected,theaveragerealreturnvariesbyfive-yearsegment:insomeyearsitishigherandinotheryearsitislower.Thefive-yearperiodwiththestrongestaveragerealreturnswas1981-1986;thosewiththelowestare1997-2002and2003-08.Whatmattersmosthoweveristhatinallthesedifferentperiods,thenatureandthedirectionoftherelationshipremainsessentiallythesame. The cheaper the starting valuation, the higher the subsequent return.
Edinburgh Partners Valuing An Equity
Year5realP/E
5yearrealtotalreturninUSDp.a.(%)
Source: Edinburgh Partners, Thomson Reuters
Source: Edinburgh Partners, Thomson Reuters
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Marketmean Valuation return
All five-year periods produce a similar sloping result.
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Outofinterest,althoughweareunabletoreplicatetheglobalscopeofourrecentstudiesgiventheshortageofdatainearlierperiods, the samepattern also appears tobe visible if you look at amuch longer timeperiod.Thedata setbehind Figure5,for reasonsalreadygiven, is less reliableas it covers justone stockmarket, thatof theUS, and suffers fromsurvivorshipbias.Neverthelessthepatternoverthislongerperiod,whichextendsfrom1870tothepresentisbroadlysimilar.Thedatafurthestfromthecurveincludesyearsthatweretypicallyeitheratthepeakortroughofaneconomiccycle,whenearningsaremostlikelytobeunrepresentativeofthelonger-termtrend.
Figure 5 – Valuation and return over 5 years for the S&P 500 index, 1870 to present
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Asalreadynoted,theclearrelationshipthatexistsbetweenstartingP/Esandsubsequentfive-yearreturnsbreaksdownwhenyoulookatshorterperiods.Overtimehorizonsofbetweenoneandfouryears,thereisnoformalidentifiablestatisticalrelationshipbetweenearningsmultiplesandreturns.Bywayofanexample,Figure6showstherelationshipbetweentherealP/EratioandthetotalrealreturninUSdollarsfortwoverydifferenttwo-yearperiods.Inthefirsttwo-yearperiod,1985to1987,therelationshipactuallyworkstheotherwayround,withhigherP/Esproducingonaveragehigherreturns,whereas inthesecond, thenormalinverserelationshipreappears.Thefirstperiodmarkedtheendofaverylongandsustainedbullmarketforshares,culminatinginthe1987stockmarketcrash.Inthisperiod,thehighestaveragereturnswereachievedbystockstradingontwo-yearforwardP/Eratiosofmorethan30.Thesecondsetofdataincludedtheworsteffectsoftheglobalfinancialcrisis.
Valuing An Equity
Year5realP/E
5yearrealtotalreturninUSDp.a.(%)
Source: Edinburgh Partners, GFD Global Database
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The relationship also appears valid in pre 1970 data.
Figure 6 – Valuation and return over 2 years, 1985-1987 and 2006-2008
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Thisexampleclearlyillustratesthedangersofextrapolatingafive-yearrelationshipintoauniversaltruththatholdsovershortertimeperiods.Thestudyconfirmsthatovershorterperiodstherelationshipbetweenvaluationsandreturnsisclosertobeingrandom,asstockmarketacademicshavelongsuspected.Fundmanagerswhoattempttooutperformtheirbenchmarksbypickingstockswithaone-ortwo-yeartimehorizonarefatedthereforetodowellinsomeperiodsandbadlyinothers.Whiletheirmethodsmayproducegood,orevenspectacular,resultsfromtimetotime,theycannotbesaidtobebasedonareliableorwell-foundedinvestmentphilosophy.Forgenuine longer-terminvestors,whoseanalysis isgearedtoatimehorizonwheretherelationship isknowntoexist,thesamecannotbesaid.
OurresearchthereforeconfirmsthatpickingstocksonthebasisofforwardP/Eratiosrequireschoosingafive-yeartimehorizon.Stickingtoadisciplinedvalueapproachrepresentsademonstrablysystematicallyconsistentandreliablebasisforbuyingwhensharesarecheaponalong-termbasisandavoidingthosethatarenot.ThestudyhastheaddedbenefitofprovidingasetofbenchmarksforthelevelofforwardP/Eratiosthatareworthpayingintheexpectationofgeneratingpositiverealreturns.
Figure1setsouttherelationshipbetweenrealtotalreturnandlong-termvaluation,whichallowsvaluationparameterstobederivedforparticularreturns.Forexample,moststudiessuggestthatthelong-termaveragerealreturnfrominvestinginequitiesisaround6%perannum.Figure1showedthattoachievethiswithabasketofequities,theaveragefive-yearvaluationofthebasketshouldbeapproximately11x(notethatthisfigureshouldnotbeconfusedwiththe11xratiointhediscreteperiod2003-08,whichasaperiodofdepressedreturns,happenedtobethebreakevenpointinthoseyears).
Edinburgh Partners Valuing An Equity
2yearrealtotalreturninUSDp.a.(%)(1985-1987) 2yearrealtotalreturninU
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Year2realP/E 1985to1987(LHscale) 2006to2008(RHscale)
Source: Edinburgh Partners, Thomson Reuters
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Two year periods can produce wildly different outcomes.
Determining Future Profits
Havingfoundaclearrelationshipbetweenlong-termP/Esandrealtotalinvestmentreturns,whatisthebestwaytocapitaliseonthisimportantempiricalfinding?Thelogicalconsequenceisthatanyonewhohasabetterthanrandomsuccessinforecastingfive-yearearningshasthecapacitytoproduceaboveaveragereturns.Assharepricesinthelongrunaredeterminedbyprofits,italsofollowsthatthecentraltaskoftheinvestoristoseektoforecasttheseprofits.Ourstudyshowsthateveryinvestmentcarrieswithitanimplicitassumptionaboutfuturelong-termprofits.
Bymakingourforecastingexplicit,ithelpsusappreciatetheimportanceofunderstandingrisk–theriskofgettingtheforecastwrongandasaconsequencegettingareturnsignificantlydifferentfromtheinitialexpectation.Ormoresimply,buyingastockthatonethoughtwascheap,onlyforittoturnouttobeexpensive.Howtoapproachthetaskofforecastingfutureprofits,includingtheprobabilityandimpactofforecastingerrors,willbeaddressedindetailinalaterpaper.
Toprofit fromthefindingsof thestudy,ofcourse, requiresmorethan justanappreciationof thestrengthof therelationshipbetween starting valuations and realised returns. In practice few investors have the patience, or are allowed the freedom, toimplementaninvestmentstrategywithafive-yeartimehorizonforassessingresults.Inaworldthattendstobefixatedwithshort-termresults,afundmanagerneedscourageaswellasdisciplinetoputsuchaphilosophyintopractice.Holdingyournerveiseasierwhentheempiricalsupportforyourmethodsandphilosophycanbeunequivocallydemonstratedwithresearch,aswenowknowthemtobe.Weexaminetheseissuesofimplementationintwofurtherstudiesinthisseries.
Conclusion
It isnotnews that the returnyoucanexpect fromowninga security isdeterminedby its futuregrowth inearnings.Thekeydeterminantsofreturnarethesustainablefuturerateofgrowthandthepricethataninvestoriswillingtopayforthatgrowth.Neitheronitsownsayswhetherastockisabargainornot.Itisthetwoincombinationthatmatter.Thatdoesnot,however,stopahugeamountoftimeandeffortintheinvestmentworldbeingdevotedtoanalysinganinvestor’sstyle,andinparticulartoseekingtoclassifythatstyleaseither‘value’or‘growth’.
Whilevalueinvestorsdohaveatendencytofocusonhistoricmeasuressuchasprice/book,price/sales,orprice/earnings,growthinvestorsconcentrateinsteadonfutureprofitsorcash-flowgrowth.Thesearenotmutuallyexclusiveandbothapproachesarecentraltothetaskofvaluingastock.Thekeyistodevelopasimplecoherentapproachthatdetermineshowmuchoneshouldbewillingtopayforfuturegrowthandtobeconfidenttostepbackfromownershipifthepriceistoohigh.
Theempiricalevidencesupportsboththeacademicliteratureandwhatcommonsensewoulddictate.Namely,thestockmarketwilleventuallyvalueabusinessbaseduponboththequantumandthegrowthinitslong-termprofitstream.Judgingthisprofitstreamrequirestakingaccountofthedurationandimpactoftheeconomiccycle.Researchanalysisisthereforeaboutseekingtousetheopportunitiescreatedbyshort-termvolatilitytoidentifyandinvestincompaniesatasubstantialdiscounttothevaluationimpliedbytheirlong-termprofitspotential.Fundmanagementisaboutrecognisingtheindividualandcollectiverisksininvestmentsandtryingtobalancetheriskrewardprofileoftheindividualinvestmentstobalancetheserisks.
Whilstthisisnotasimpletask,itisanunavoidableone.Assuch,thecriticalelementsincludemaximisingtheprobabilityofachievingaccurate forecast scenarios by having a team of experienced analysts. It involves minimising errors by employing a robust and transparentinvestmentprocess.Finally,asmarketsrepeatedlydemonstrate,itrequiresholdingontothecourageofyourconvictionswhensharepricesmovetoinappropriatelevelsforextendedperiods.
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Value and growth are both misleading terms.
About the Author
Dr Sandy Nairn, Investment Partner and Chief Executive researches global telecommunications and manages several client portfolios, includingEdinburghPartnersGlobalOpportunitiesFund.HeisamemberoftheBoardofDirectorsandoneofthefoundersofEdinburghPartners.HewasCIOofScottishWidowsInvestmentPartnership(2000-2003).AtTempletonInvestmentManagementhewasExecutiveVicePresidentandDirectorofGlobalEquityResearch(1990-2000).HeisanAssociateoftheUKSocietyofInvestmentProfessionalsandaCFAcharterholderwithAIMRintheUnitedStates.Hehaswonmultipleperformanceawardsforthemanagementofglobalequityportfolios.In2001hepublishedthebook“EnginesthatMoveMarkets:TechnologyInvestingfromRailroadstotheInternetandBeyond”.Healsoco-authoredthebook“Templeton’sWayWithMoney”withJonathanDavisofIndependentInvestorLLP,publishedin2012.
About Edinburgh Partners
EdinburghPartners isan independent fundmanagementcompanywhich ismajority-ownedby itsstaff.Weinvestgloballywithanemphasisonabsolutereturnsoveralong-termtimehorizon.Ourgoal istoprovideclientswithsuperiorlong-termreturns. Webelievethecreationofvalueforourclientsdependsuponthequalityandexperienceofourinvestmentteam.Combiningahigh-qualityteamwiththeabilitytotakealong-termviewprovidesthebasisforcreatingsuperiorreturnsforclients.
Contact Information
EdinburghPartnersLimited27-31MelvilleStreetEdinburghEH37JFTelephone:01312703800Facsimile:01312703801Website:www.edinburghpartners.com
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