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Buying back in
“ There ’ s a lot to be said for not selling . If you ’ ve found a great company , the greatest risk is that you don ’ t get back in ”
Phil Smeaton Chief investment officer at Sanlam
for example , was the dominant streaming company , but over the past year we ’ ve had Disney and other competitors entering the market .” When there ’ s a structural problem , it takes management time to adjust . The cliché goes that profit warnings tend to come in threes . However , if the business is structurally sound , it may be that once the bad news is out of the way and the company has taken the right steps to deal with it , the share price doesn ’ t react immediately and there is an opportunity .
Clouding over Charles Jones , manager of the Waverton Global Equity fund , gives the example of Google ’ s owner Alphabet : “ We sold down in 2018 due to concerns that it was executing poorly in its public cloud initiatives , lagging behind Microsoft and Amazon , as well as providing insufficient disclosure in its financial reports , which made it difficult to analyse with conviction . “ The appointment of Thomas Kurian at the end of 2018 as head of Google Cloud was a key
/ 36 / trustnet . com