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Articles tagged as "Investment philosophy"

Orbis: There are bigger risks than swimming against the tide

By John Christy on 06 Sep 2019

We have always described ourselves as “contrarian” investors. While many of our best investment decisions on behalf of clients in the past have been at odds...

Orbis: enthusiasm for the portfolio

By Ben Preston on 29 Jul 2019

Contrarian investing is a strange profession. When things are going well, you can look like a magician – earning extraordinary returns while others flounder....

Capital: Can companies have too much of a good thing?

By Rob Perrone on 17 May 2019

In the centre of London, there is a market whose history stretches back to the first century. Built on the site of a Roman forum, Leadenhall was once the...

Orbis: Hunting for value

By Alec Cutler on 29 Apr 2019

Buying cheap stocks and selling them for a profit sounds like a reasonable way to make money. But there’s a bit more to it when it comes to the way we invest...

Stable Fund: Are we meeting our objectives?

By Stephan Bernard and Radhesen Naidoo on 29 Apr 2019

The investment environment over the last few years has been particularly challenging, causing the Stable Fund’s return to be more volatile than it has been...

Orbis: Think like a business owner

By Rob Perrone on 02 Nov 2018

Say you own a small stake in a company. Every day, one of your partners tells you what he thinks the business is worth, and he offers to buy your stake or se...

How to select your asset manager

By Thandi Ngwane on 26 Sep 2018

Past performance is often the first, and sometimes only, consideration investors make when selecting an investment manager. However, performance is just one ...

Ride out volatility and maximise returns

By Andrew Lapping on 22 Aug 2018

Market fluctuations are an expected and necessary part of investing. While market volatility often presents good opportunities for value investors like Allan...

How to spot investment red flags

By Duncan Artus on 03 Aug 2018

South Africa has been rocked by a series of corporate scandals in recent years that have sent the share prices of former blue-chip companies like Steinhoff a...

How Allan Gray values a stock

By Andrew Lapping on 18 Jul 2018

Allan Gray is a strong proponent of value investing, the mantra famously championed by Warren Buffet. Put simply, value investing is the concept of buying...

Cloudy crystal ball

By Alec Cutler on 18 Jun 2018

Two years ago, our crystal ball was cloudy. Shares and commodity prices suffered a rout in early 2016, and markets were concerned that economies around the...

Structural challenges to business models

By Duncan Artus and Tim Acker on 15 Jun 2018

At the core of our investment philosophy we look for companies we believe are priced below our estimate of their true worth and sell them when they reach fai...

Are you overly exposed to China?

By Duncan Artus on 13 Jun 2018

As South African investors we are very tuned into the local political and economic risks that we face. But what about the less obvious risks?

Long-term investing should have nothing to fear from the Viceroys

By Leonard Krüger on 19 Apr 2018

Activist short sellers have been a prominent feature in stock markets for many years. It’s easy to get caught up in the hype when their ideas hit the news....

Orbis Global Equity: Investing differently

By Matt Adams on 19 Apr 2018

Over the last five years, the median global equity manager has underperformed the MSCI World Index and many value-oriented global equity managers have done...

How to be a responsible investor

By Raine Naudé on 19 Apr 2018

Responsible investing has become a front-page issue in the last year as companies, investors and asset managers have had to respond to a number of ethical an...

Demystifying Africa’s debt markets

By Nick Ndiritu on 15 Feb 2018

Investors seeking diversification outside of South Africa can easily overlook the investment opportunities in other African markets. It is tempting to start ...

Q&A: Orbis Global Equity Fund

By Tamryn Lamb on 09 Feb 2018

What are the names of the managers of the Orbis Global Equity Fund and where are they based...

Investment lessons from 2017: be patient and trust your analysis

By Andrew Lapping on 01 Feb 2018

Separating oneself from the noise is tricky. There is an enormous amount of information out there; you can listen to experts on television, read newspapers,...

How has your investment been impacted by the fall in the price of Steinhoff?

By Andrew Lapping on 11 Dec 2017

Global retailer Steinhoff International Holdings NV’s share price had fallen 86.9% by close of trade on Friday 8 December, following CEO Markus Jooste’s...

Will traditional car manufacturers be driven off the road by their electric counterparts?

By Tamryn Lamb on 01 Dec 2017

Investors in general are pessimistic about the autos sector. They are worried about earnings declines and the growth of electric cars, produced by the likes ...

Woolworths: Value investing in action

By Andrew Lapping on 23 Nov 2017

It can be difficult for investors to choose an investment manager when many of us seem to sound and look the same. Using Woolworths as an example, Andrew...

The benefits of being counter-cyclical in a cyclical world

By Rory Kutisker-Jacobson on 24 Oct 2017

“Prediction is very difficult, especially about the future.” – Niels Bohr. In cyclical industries, understanding where we  are in the cycle and acting...

Emerging market equities: looking beyond the mega-caps

By Woojin Choi on 24 Oct 2017

Our offshore partner Orbis launched an Emerging Markets Equity Strategy in January 2016. Later that year it broadened the mandate of its Asia ex-Japan Equity...

The value of bitcoin

By Jacques Plaut on 24 Oct 2017

The total market value of all bitcoins is US$80bn, which is more than the value of Richemont and triple the value of Anglo American. It is the topic on which...

Orbis: Tech can be contrarian - if the price is right

By Rob Perrone on 26 Sep 2017

We are contrarian investors, and technology shares are often popular. Given that, you might expect us to shun them. At times, we have: when tech stocks trade...

How to be a discerning investor

By Andrew Lapping on 25 Aug 2017

Negative sentiment and lower expectations for future growth are sending investors scurrying...

SNAPSHOT: Allan Gray Equity Fund

By Andrew Lapping on 11 Aug 2017

The Allan Gray Equity Fund is for investors who are looking to create long-term wealth by investing in shares: historically equities have been the best way t...

An investment case for Life Healthcare

By Ruan Stander on 31 Dec 2016

Recent news about private hospital operator Life Healthcare’s international investments has created negative sentiment about the company’s ability to allocat...

Global perspective: Do value shares deserve to be this cheap?

By Alec Cutler on 31 Dec 2016

The Orbis Global Balanced Fund aims to balance capital appreciation and income generation with the associated risk of its investments. These objectives...

What to focus on when choosing shares and other assets

By Duncan Artus on 18 Nov 2016

How do you distinguish a good investment from a lemon? And how do you create a well-diversified portfolio? Listen to this 15-minute interview on PowerFM...

Orbis: We welcome the rise of passive investing

By Ben Preston and Rob Perrone on 11 Nov 2016

The Wall Street Journal ran a series this month commemorating the rise of passive investing. The articles make ‘the case for the triumph of passive’, calling...

How to select an investment manager

By Mahesh Cooper on 19 Oct 2016

Focusing on past performance is often the first and only port of call for investors when trying to differentiate between investment managers. But there is no...

Orbis: Not just looking for cheap stocks

By Jeremie Teboul on 07 Oct 2016

Our investment approach, which we share with our offshore partner Orbis, is sometimes characterised as ‘looking for cheap stocks’. Jeremie Teboul from Orbis...

Pursuing long-term returns without simply reaching for risk

By Ben Preston and Maurits Ovaa on 30 Sep 2016

Ben Preston and Maurits Ovaa explain why Orbis believes minimising losses is arguably more important than maximising gains at a time when many stock markets ...

Nuanced numbers and valuation pitfalls

By Leonard Krüger on 30 Sep 2016

We pick shares for client portfolios following a rigorous, bottom-up, fundamental research process. This involves, among many other considerations, the caref...

Investing tutorial: Our approach to value investing

By Wanita Isaacs on 30 Jun 2016

Our investment philosophy and process is so much part of our DNA that we forget not all clients are familiar with what we actually do and how we make our...

XPO Logistics: Diversification through owning both shares and bonds

By Ashley Lynn and Matt Adams on 30 Jun 2016

Forming contrarian views about the intrinsic value of companies is the core of what we do. In the Orbis Global Balanced Fund, this fundamental company resear...

Restructurings as a source of excess returns

By Duncan Artus on 30 Jun 2016

We are always on the lookout for opportunities offered by the potential restructuring of companies. They can often generate attractive returns with a...

Managing portfolios in times of uncertainty

By Duncan Artus on 24 Jun 2016

My inbox is filling up with commentary about the impact of Brexit. Some of the commentary is of debatable long-term value and with news of this nature it tak...

Commodities: Opportunity or risk?

By Mark Dunley-Owen on 31 May 2016

We are ‘bottom-up’ investors who pay more attention to valuations than to macroeconomic forecasts. We do extensive research to calculate what we believe is...

Playing a loser's game

By William Gray on 31 Mar 2016

The loser’s game isn’t especially fun to play, but it is a winning strategy for those who have the discipline and the patience for it. William Gray, from our...

Annual report from the outgoing Chief Investment Officer

By Ian Liddle on 01 Mar 2016

Adapted from the Chief Investment Officer’s comments, which will appear in the Allan Gray Unit Trust Annual Report, 2015. These are Ian Liddle’s final Annual...

Orbis: Buying carefully in indiscriminate selloffs

By Tamryn Lamb on 24 Dec 2015

Periods of short-term underperformance are a price we must pay for seeking superior long-term returns. The third quarter certainly qualified as one of those...

Asset allocation: Top down, or bottom up?

By Mahesh Cooper on 07 Dec 2015

Within a multi-asset class balanced portfolio , there are different ways to manage the asset allocation. Some managers prefer to follow a ‘top-down’ strategy...

Contrarian investing and different performance

By Mahesh Cooper on 30 Sep 2015

The valuation-based approach to investing used by Allan Gray and our offshore partner Orbis is often contrarian since the shares that are most attractively...

Commitment counts

By Zwelethu Nkosi on 30 Sep 2015

There will always be ups and downs in the markets as much as in life. To deliver great long-term investment performance we believe a fund manager needs to...

Valuation dispersion and opportunities to beat the market in Australia

By Julian Morrison and Werner du Preez on 30 Sep 2015

Cyclicality and dispersion in valuations can create great opportunities to buy shares at very attractive prices in companies that are out of favour with the...

What is a PE ratio?

By Wanita Isaacs on 30 Jun 2015

Central to our investment philosophy at Allan Gray is buying shares that the market has priced below what we believe they are worth. We then sell these share...

The case for active management

By Matt Adams and Adam Karr on 30 Jun 2015

It is popular these days to talk about how difficult the past several years have been for active managers. In a sense, however, active management is always...

Orbis Global Equity: Guided by our investment philosophy

By Graeme Forster on 31 Mar 2015

This piece was originally published in the Orbis March 2015 Quarterly Manager's Report. Over the 25-year history of Orbis' Global Equity Fund, the underlying...

Orbis funds: Finding the best long-term value for clients

By Seema Dala on 30 Sep 2014

The Orbis Global Equity Fund will mark its 25th year at the end of December. In that time, Orbis has provided access to the same fundamental, contrarian,...

How 'active' is your manager?

By Fiona Jeffery on 30 Jun 2014

Regular readers of our commentaries will know that we follow a valuation-based investment philosophy. At the same time, we are not afraid of investing contra...

Understand your Stable Fund investment

By Claudia Del Fante and Lise-Mari Crafford on 31 Dec 2013

We have written on many occasions about the role investors play in their investment success. Key to this is understanding your fund's risk profile and...

Hunting for compelling opportunities in the current environment

By Adam Karr on 31 Dec 2013

2013 was a good year for global stock markets. The FTSE World Index returned 24.7% in US$ terms since the start of 2013 and is near an all-time high. The Orb...

Distraction is the enemy

By Henk Pieterse and Zwelethu Nkosi on 30 Sep 2013

In an always-on, connected world, distractions are around all the time. We have well over a hundred television channels available 24 hours a day, seven days ...

Orbis Global Equity Fund: A reversal of fortunes

By Seema Dala on 30 Sep 2013

After a prolonged period of relative underperformance, since January this year the Orbis Global Equity Fund has meaningfully outpaced its benchmark in US...

Standard Bank: Has anything changed?

By Mark Dunley-Owen on 30 Sep 2013

Standard Bank is a Top Five holding in the Allan Gray Equity and Balanced Funds. Mark Dunley-Owen discusses why we believe it is an attractive investment for...

How to select the right investment manager

By Rory Maguire on 25 Mar 2013

It is challenging for investors and their advisers to differentiate between investment managers in an ever-changing landscape. When assessing who is best...

Not the time to relax risk appetite

By Ian Liddle on 28 Jan 2013

In his 1988 annual letter to shareholders, Warren Buffett wrote: ‘We have no idea how long the excesses will last, nor do we know what will change the...

Drilling into the detail of oil and gas investments

By Dan Brocklebank on 31 Dec 2012

At first glance, the Orbis Global Equity Fund's exposure to Oil & Gas; Gas stocks appears to be similar to that of its benchmark. At December 2012, about 9% ...

The nature of contrarian investing

By Duncan Artus on 31 Dec 2012

The average investor cannot avoid being bullish at market tops and bearish at bottoms. This produces periods of speculation and panic within the normal up an...

Message from our Top 10 equity holdings

By Simon Raubenheimer on 26 Nov 2012

Investors frequently ask us whether or not our choice of shares reveals a particular theme or ‘story’. Investors are also curious as to how we alter our...

A healthy approach

By Seema Dala and Tamryn Lamb on 30 Sep 2012

Broadly speaking, one could think about building a portfolio in two key ways. Investors with a 'top-down' approach start with a wide view of the world and ma...

Responsible Investing

By Ian Liddle and Mahesh Cooper on 30 Sep 2012

The Code for Responsible Investing in South Africa ('CRISA') was introduced in 2011 as an industry-wide initiative. Allan Gray supports CRISA's principles an...

Investing: a history of bubbles

By Jonathan Brodie on 30 Jun 2012

'Invest in stocks? Forget about it.' - USA Today headline, 8 May 2012. As contrarian investors, we cannot help but take notice when one of the most widely re...

Tobacco economics

By Ruan Stander on 30 Jun 2012

Most industries have a single factor that helps investors to understand them better. Unfortunately for investors looking for easy wins, it does not necessari...

Things you can control, and things you cannot

By Trevor Black and Jonathan Brodie on 31 Dec 2011

In this current very uncertain world, we cannot begin to control or predict political or economic outcomes. But we can control what shares we buy and we are...

It is the price you pay that counts, not the headlines

By Andrew Lapping on 31 Dec 2011

People enjoy stories; they are fun. This is true in all facets of life, including investing. Investors often have stories to tell about individual equities,...

An era of high global earnings

By Simon Raubenheimer on 30 Sep 2011

Company profits are currently at historic highs, but we do not know with any certainty where they are headed. Although it is entirely possible for global and...

What we know for sure

By Delphine Govender on 01 Sep 2011

At Allan Gray we prefer not to opine over reasons for short-term movements in stock markets and share prices and we shy away from predicting changes in the...

The risk that matters

By Delphine Govender on 30 Jun 2011

Discussions about investing are incomplete without including the topic of risk. Delphine Govender elaborates, focusing on the most important risk in investin...

The long-term outlook for the South African bond market

By Andrew Lapping on 31 Mar 2011

As a bond investor you need to ask yourself two questions: are your inflation expectations reasonable, and will the potential real return be sufficient? Andr...

Responding to challenging times

By Henry Allen and Trevor Black on 31 Dec 2010

Performance does not come in a straight line, which means that periods of long-term outperformance will always be accompanied by periods of, sometimes...

When is bad news good news?

By Chris du Toit and Tamryn Lamb on 30 Sep 2010

As contrarian investors we are always on the lookout for shares that we can buy at a significantly lower price than we believe they are worth. Thus, with ban...

Happy equilibrium

By Duncan Artus on 30 Sep 2010

Duncan Artus discusses the implications of the growth in the local asset management industry being focused on asset managers who variously describe their...

You win some...

By Delphine Govender on 30 Sep 2010

Building and managing a portfolio of investments inevitably includes shares that will prove to be winners but also those that will fail to deliver on their...

The story is in the stocks

By Jonathan Brodie and Trevor Black on 30 Jun 2010

Investors who give their money to professional managers to invest still wish to remain informed about what their managers are thinking and how therefore they...

Tough to be different

By Jonathan Brodie and Trevor Black on 31 Dec 2009

In the Q2 Quarterly Commentary, Jonathan Brodie and Trevor Black of Orbis discussed the fact that long-term outperformance requires a partnership between the...

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