Our Thinking

Orbis Global Balanced: Quarterly Commentary

Bond investing is simple. When you buy a bond, you are essentially lending money to a company or government. They pay you interest to use your cash, and then at some agreed-upon date, they pay you back. If you’d rather not wait, you can sell the bond to someone else in the interim—though the price you can get might vary.
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Tech can be contrarian—if the price is right

Tech stocks are often considered popular, but over our history, we’ve found that both cyclical and fast-growing tech companies can trade at attractive discounts to intrinsic value.
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Keep the tech bubble nightmares at bay

From a top-down perspective, the prolonged outperformance of certain technology-focused companies has begun to raise eyebrows among those of us with first-hand experience of the inflation, and subsequent bursting, of the dotcom bubble. From the Nasdaq Composite’s peak in March 2000, it took 15 years for its price to exceed that level again. Not only is that an object lesson in one of the dangers of a passive investing strategy, but with the index now standing some 20% higher than that previous peak, it also raises the question whether today’s investors should be worried about history repeating.
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A contrarian look at US healthcare

Our fundamental, long-term, and contrarian investment approach requires in-depth knowledge of companies—and industries. This month, US analyst Betsy Lind discusses how we analyse US healthcare shares and explains our investment thesis on a current opportunity in the industry.
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Two myths about emerging market equities

We consider two reasons commonly cited for avoiding emerging market equities—that they underperform when US interest rates rise and during developed world bear markets—and find that neither is substantiated. Clinging to these beliefs may cause investors to miss out on attractive long-term investment opportunities.
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The only investment mistake you can't come back from

As we enter the ninth year of a bull market, attractive opportunities are challenging to find and carefully avoiding capital loss may be the name-of-the-game for long-term investors.
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Hunting for value in unpopular neighbourhoods

It has been eight years since global equity markets bottomed on 9 March 2009. Since then stockmarkets have been robust, with the MSCI World Index delivering a solid price return of 13% per annum. This has substantially outpaced the return on cash-like securities, implying that compensation for taking on equity risk has been well above normal.
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Stewardship: being a responsible shareholder

Doing right by our clients is not only about the investments we select, but also about how we act as stewards of their capital.
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For better equity returns, focus on valuations—not growth

Equity investors should stay focused on valuations, even when GDP numbers dominate the headlines.
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President's Letter 2016

2016 was a good year for Orbis clients. The Orbis Funds outperformed their benchmarks by an asset-weighted 7.6% after all fees and expenses.
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Putting the value run in perspective

Value shares' outperformance this year should be considered against the backdrop of an unusually painful decade.
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Passive investing is not risk-free

We welcome the rise of passive investing 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 active management a “dying business” because “investors are giving up on stockpicking.”
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