Ann: Funds Under Management - October 2021, page-37

Agree and this is something I think about a lot. These are the issues we should be discussing rather than chasing the tail with some weird set of numbers in a spreadsheet.

My rationale is that when the interest rate goes up , entire world markets are over valued and it will be impacted.
But over so many decades it has proved consumer and utility will be the least effected. Also these companies in MFG portfolio have best balance sheets in the world.
The balance 50% or so are technology companies which will be impacted when higher discount factor is applied.
But I keep coming to the conclusion that these are technological and now consumer companies with extraordinary Balance sheets world have never seen before , except for one or two like Amazon, Netflex.
I think all the companies in the portfolio are what Warren Buffet calls saying it has a ‘moat’ . With these amounts of cash they can go through any situation.
On the question of diversity raised by Andy777, Netflex is a good example where I would have got it wrong as an individual investor. I had the feeling it had too many competition and excessively valued about 12 months back. However Hamish bought it around 480 I think and now it is A$680. This is something I would have never bought on my own. Few months back they announced moving into gaming segment too. No wonder Hamish and the team so value in it even though PE was 70+. Amazon similar story with extremely high PE Hamish bought it due to high growth factor. These guys have diversified my portfolio for me.