9) Focus on growth (missing out on this is ‘the biggest mistake...

9) Focus on growth (missing out on this is ‘the biggest mistake in Australia’) marcus padley on 14 December- Livewire
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Key differentiators between cyclical drivers and structural growth

Australia has a large number of cyclical stocks that align themselves to what’s happening in the economy and in the current market, these companies are benefiting from macro tailwinds largely outside the control of the business. Donohue says these factors tend to typically be shorter-run phenomenon.

“The structural growth story is of far higher quality mainly because the company has the fate of its earnings in its own hands,” he says.

“We tend to value and pay a higher value for structural growth stories but there's a place for both within the portfolio at certain times.”

Tam agrees and cites Appen as one stock she would pay high multiples for as it is currently exposed to the structural tailwinds of the explosion in AI applications.