By nature, people tend to conform. One of the ways people make decisions is to look at how others have behaved in situations, because copying others’ behaviour can be useful in many areas of life. One area of life where conforming is not useful is investing. To outperform, you cannot do what everyone else is doing. But going against the herd with every investment you make is extremely tough mentally.
At Allan Gray Australia, our investment philosophy is to take a contrarian approach, apply it consistently and invest for the long term. Our Equity Fund invests in selected Australian shares with the aim of outperforming the S&P/ASX 300 Accumulation Index over the long term. We search for value in places others overlook or undervalue, then we determine the things that drive the company’s performance and hence its value over the next five or even ten years.
In this Fund in Focus, Julian Morrison takes a deeper look into the Fund, our investment philosophy, some of the opportunities that we are seeing in the current environment and how a contrarian approach can fit into your asset allocation. Watch now.
Julian Morrison holds a Bachelor of Arts (Honours – University of Sheffield) and the Chartered Financial Analyst designation.