MFG in the BUY zone

Anyone could have made money out of stock markets these past 18 months.

I think this has worked against Magellan to some extent. If you take note of Hamish’s online videos over this time he has built portfolios that have more downside protection (somewhat in response to the horrors of March 2020)

He realises there are $trillions in play here with retirement age and beyond folk for whom downside protection is important- yet still expect an element of growth.

When markets are flying this downside protection is invisible and in fact is something of a drag overall. You have to concede that MFG has been a relative under performer. When market conditions are tougher this downside protection (and MFG stock) will be better appreciated. This will help FUM inflows.

At $43.87 it’s a little undervalued I think.....but with a p/e of 30 it’s hard to argue that. Barranjoey is definitely the ace in the pack - if that really establishes itself in the next few years as a deal maker that can compete with the big boys - it could turn itself into a ‘Mini Macquarie ‘ and help propel the MFG sp to $100.

In the meantime I’m happy to hold at a 5% dividend and will be looking to top up if it drops much more from current levels.