Our last article, Indexing, Benchmarking, and the Problems Therein, generated a lot of positive feedback so we have taken the time to deepen the discussion further. As a quick refresher – Benchmarks and the Indices they are derived from are typically used by firms such as ours to provide some element of performance comparison and...
We are often asked about our performance relative to an appropriate “benchmark”. For this reason, we often cite our over/under-performance relative to the S&P 500 (the most widely used benchmark, despite significant drawbacks). But please note, we are indifferent to any benchmark, and by no means manage our portfolio with the S&P 500 in...
Aside from the pandemic and election related news this year, you are probably also aware of a significant wave of private companies going public in the market to great fanfare and even greater one day share price appreciation. Some notable examples this year have been: Snowflake, Unity Software, DoorDash, Airbnb… just to name a few....
Over the past decade, a new sub-industry has developed within the investment community. It operates under a number of names, the broadest of which is Responsible Investing, which incorporates concepts such as ESG (Environmental, Social, and Governance), and SRI (Socially Responsible Investing). At its core, Responsible Investing requires that investors acknowledge a number of issues...
Buried in the news coverage of the election last week was a story that China suspended the $34 billion IPO of Ant Group, the largest online payments platform in China which grew up inside Alibaba, just two days before its planned listing. If there wasn’t a huge amount of election noise going on right now,...
You might be familiar with the expression “don’t put all your eggs in one basket”. We prefer the expression popularized by Warren Buffett: “Put all your eggs in one basket, and then watch that basket very closely.” We firmly believe that despite what you may have been told, simply holding many different equities is not...
One area we have not yet touched on in our writing is that of the Investment Research produced by large Wall Street firms, also known as “Sell-Side” research. You might be wondering how much of this Wall Street research we use here at Globescan? The answer is close to none. The reason is that...
Gold is in the news again, having soared 34% to record highs in 2020. Is Globescan Capital buying Gold at these levels? No. Not now, likely not ever. Why not? For the simple reason that we (nor anybody else) really knows what the intrinsic value of Gold actually is. Give us a real asset like...
Over the last decade we have witnessed the rise (and fall) of many different investment concepts, as investment firms and academics search for a magic formula that can generate consistent returns, whilst crucially avoiding the hard work that is in reality required to generate those returns. Sadly most realize quickly that there is no...
A common question we receive is: “Are you at GCI growth investors or value investors?” Prospective clients might look at our portfolio and see holdings such as Microsoft and Mastercard, which have historically traded at price-to-earnings multiples in excess of 35x, alongside holdings such as First American Financial and UPS, which have historically traded at...
