Kate Howitt: "It can be a real temptation to trade around...

Kate Howitt:
"It can be a real temptation to trade around valuation too much. I suspect most people managing money in this market have had a wonderful business and they've been worried about the valuation and sold it and then looked around for six months and ended up buying it back at the same price. In Australia, we're penalised for turnover. In any market there's transaction costs and there's a leakage there, but here we've always got a tax leakage. You're actually going to get out further ahead if you can take a low turnover approach.
Markets are volatile, so they will go through periods of being overvalued and undervalued, but with a longer time frame there's much more upside in owning and holding a quality business than trying to pick the top on one stock and the bottom on the next."