CBA TA update, page-97

It is obvious you two @badger & @MKI4EVA run a different kind of game. You two like to run the "Wham Bam! Thank you Maam" game. Some of us like to run the Buffet style marathon, decades of holding regardless of short term economic consequences. I understand it is not for everyone. Personally, with QT, Inflation and other economic issues on the horizon the best that a marathon holder can do (apart from owning gold and gold miners) to offset the current storm is to own companies with pricing power. Those that can pass on increasing input cost to customers. The stock will be affected by economic issues but you will be assured that it comes out the other end stronger and in better shape for it...

Companies with pricing power. Look no further than Financials like CBA, other 3, and MQG. Big farmers like CGC, GNC etc. Retail like COL, WOW and WES. Diversified conglomerates (Aussie Berkshires) like SOL, BKW etc should also benefit. Although traditionally utilities will be in that category, not sure about that at present, seems to have been caught up in the scapegoat media spotlight. AGL and the likes is suffering, thanks to the Federal gov regulation threat. Communication which traditionally can easily pass costs on, is a bit of a wild bet too due to too much competition.

Here comes the "But". The companies with pricing power are Moat companies. Solid, well stablished institutions but you won't double your investment in 3 years. ROE is not your friend with these but divvy yield is. Unless you bought at Covid/market dislocation lows.... There in lies the rub, buy now and be somewhat safe when QT happens or let QT happen market wobbles or worse dislocates and then buy these quality companies. I prefer the latter.

Play the game on what suits you best and good luck with your calls.